Abstract
| Original language | English |
|---|---|
| Pages (from-to) | 260-281 |
| Journal | Journal of Economic Behavior & Organization |
| Volume | 148 |
| DOIs | |
| Publication status | Published - Apr 2018 |
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Keywords
- pension savings
- severance pay
- financial literacy
- elaboration likelihood model
- cognitive skills
Cite this
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Individual heterogeneity and pension choices : Evidence from Italy. / Gallo, Giovanni; Torricelli, C.; van Soest, Arthur.
In: Journal of Economic Behavior & Organization, Vol. 148, 04.2018, p. 260-281.Research output: Contribution to journal › Article › Scientific › peer-review
TY - JOUR
T1 - Individual heterogeneity and pension choices
T2 - Evidence from Italy
AU - Gallo, Giovanni
AU - Torricelli, C.
AU - van Soest, Arthur
PY - 2018/4
Y1 - 2018/4
N2 - The 2007 Italian pension reform allowed transferring future severance pay contributions into a pension fund. Although this was accompanied by an information campaign advising employees to make the transfer, only a minority of them did so. We analyze the heterogeneity in employees’ choices using micro panel data from the Bank of Italy household survey. Two are the main findings. First, the decision to transfer and pension fund participation after the reform are more likely for more (financially) educated and older individuals, with high household income and wealth, and less likely for female employees, in the South, and in small firms. Second, framing the analysis within the Elaboration Likelihood Model highlights that the cognitive processes underlying the decision on pension fund participation may be quite different. The decision consciousness is lower for employees working in small firms, where employers have an incentive to stimulate workers to deny the transfer.
AB - The 2007 Italian pension reform allowed transferring future severance pay contributions into a pension fund. Although this was accompanied by an information campaign advising employees to make the transfer, only a minority of them did so. We analyze the heterogeneity in employees’ choices using micro panel data from the Bank of Italy household survey. Two are the main findings. First, the decision to transfer and pension fund participation after the reform are more likely for more (financially) educated and older individuals, with high household income and wealth, and less likely for female employees, in the South, and in small firms. Second, framing the analysis within the Elaboration Likelihood Model highlights that the cognitive processes underlying the decision on pension fund participation may be quite different. The decision consciousness is lower for employees working in small firms, where employers have an incentive to stimulate workers to deny the transfer.
KW - pension savings
KW - severance pay
KW - financial literacy
KW - elaboration likelihood model
KW - cognitive skills
U2 - 10.1016/j.jebo.2018.02.016
DO - 10.1016/j.jebo.2018.02.016
M3 - Article
VL - 148
SP - 260
EP - 281
JO - Journal of Economic Behavior & Organization
JF - Journal of Economic Behavior & Organization
SN - 0167-2681
ER -