The Italian Social Protection System: The Poverty of Welfare

50 Pages Posted: 15 Feb 2006

See all articles by Massimo Rostagno

Massimo Rostagno

European Central Bank (ECB)

Francesca Utili

University of Rome, Tor Vergata

Date Written: May 1998

Abstract

Italy`s system of social protection has come under criticism for being fragmented and excessively skewed toward pensioners and "insiders." After setting up a consolidated presentation of the social security accounts, this paper provides an empirical assessment of the effectiveness of the welfare system, relying on a survey of households` incomes and wealth. It concludes that, owing to ill-designed targeting mechanisms, less than a quarter of total spending on the welfare instruments under review accrues to families whose own resources fall short of the poverty line. The paper then proposes a new means-testing formula.

Keywords: Social protection, vertical and horizontal efficiency, means-testing formula

JEL Classification: I38

Suggested Citation

Rostagno, Massimo and Utili, Francesca, The Italian Social Protection System: The Poverty of Welfare (May 1998). IMF Working Paper No. 98/74, Available at SSRN: https://ssrn.com/abstract=882356

Massimo Rostagno (Contact Author)

European Central Bank (ECB) ( email )

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Postfach 16 03 19
D-60311 Frankfurt am Main
Germany
+49 69 1344 7663 (Phone)
+49 69 1344 7604 (Fax)

Francesca Utili

University of Rome, Tor Vergata

Via di Tor Vergata
Rome, Lazio
Italy

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