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Università della Svizzera italiana

When the state mirrors the family : the design of pension systems

Galasso, Vincenzo ; Profeta, Paola

We study how the prevailing internal organization of the family affected the initial design of pension systems. Our theoretical framework predicts that, in society with weak family ties, pensions systems were introduced to act as a safety net, while in societies with strong ties they replicate the tight link between generations by providing generous benefits. Using a historical...