The Italian gender gap in pensions: A cohort of birth approach

Introduction: The text discusses the gender pension gap in rich countries, focusing specifically on Italy. The paper delves into the evolution of this gap across different generations, analyzing social security reforms and their impact on retirement incomes. The study emphasizes the importance of understanding these disparities for designing effective pension systems that address gender inequalities and ensure well-being in retirement. Objective: The aim of the article is to investigate the gender pension gap, specifically in the context of Italy, by analyzing the factors contributing to this disparity, including late entry into the job market, wage gaps, and caregiving responsibilities. The study focuses on understanding the impact of social security reforms and the pension system on these gender inequalities, aiming to provide insights for the design of equitable pension systems. Materials and methods: The article utilized administrative data from the Italian National Institute for Social Security (INPS) covering pension payments from 1995 to 2022. The study employed a cohort perspective, analyzing the evolution of the gender pension gap across generations and examining the impact of social security reforms and labor market arrangements. Results: The main conclusion of the study indicates that while the absolute gender disparity in mean retirement income has increased across cohorts of Italian retirees born between 1930 and 1954, the relative gender gap, when considering men’s average pension, has decreased over time. Additionally, the impact of survivor’s benefits has been significant in reducing the gender disparity in pensions, particularly in the later stages of life. Furthermore, the study found that the impact of social security reforms in Italy has been limited, primarily affecting the youngest cohorts, with most retirees still relying on the dominant defined benefit component for their pensions.