The Italian Social Protection System: The Poverty of Welfare
50 Pages Posted: 15 Feb 2006
Date Written: May 1998
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: Suggested Citation