Life Expectancy Heterogeneity and Pension Fairness: An Italian North-South Divide

This work documents a persistent life expectancy heterogeneity by gender and geography in Italy during the period 1995–2019. Based on deviations of at age 65, it quantifies implicit tax/subsidy mechanism triggered when pensions annuities are computed adopting same value longevity for whole population. The intensity this transfer is then measured projected over decade 2020–2030. Results show that females subsidized while males taxed around 10%. Differences persist along Italian territory. Since 1995 macroarea Mezzogiorno has been 2%, Center North-West macroareas being 1%, whereas North-East 2%. mechanism, despite decreases time, higher among since year 2000. From geographical perspective, shows lowest intensity, but also reduction as compared to other macroareas. Projections indicate North-South divide will next decade.