Does homeownership partly explain low participation in supplementary pension schemes?

Marco Santantonio, Costanza Torricelli and Maria Cesira Urzì Brancati

Centro Studi di Banca e Finanza (CEFIN) (Center for Studies in Banking and Finance) from Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi"

Abstract: We used nine waves of the Bank of Italy’s Survey on Household income and Wealth (1995-2012) to investigate a possible trade-off between homeownership and individual participation in a supplementary pension scheme. Italy lends itself to this type of investigation because the Italian public pension system has been heavily reformed in the period, providing in principle incentives for participation, and the homeownership rate is very high. The impact of homeownership is captured in two ways: by a dummy for being homeowner and by an index defined as the share of housing wealth over total wealth. Our results show that indeed, after controlling for a vast array of socio-economic characteristics and allowing for unobserved individual heterogeneity, both measures of homeownership are negatively associated with participation in supplementary pension schemes and that such an effect does not disappear even after the 2007 reform.

Keywords: pension plan participation; retirement planning; housing investment (search for similar items in EconPapers)
JEL-codes: D91 H55 (search for similar items in EconPapers)
Pages: pages 28
Date: 2014-09
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Citations: View citations in EconPapers (22)

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Related works:
Journal Article: Does Homeownership Partly Explain Low Participation in Supplementary Pension Schemes? (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:mod:wcefin:0048

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