Pension Fund Participation and Contribution in Italy: An Intra-Couple Decision?

This study analyzes participation in and contributions to pension fund in Italy from an intra-couple per spective, testing three alternative decision-making models: the atomistic model, the unitary model with fiscal optimization, and the cooperative model with limited commitment. Based on the Bank of Italy’s Survey on Household Income and Wealth data (2008–2022), the bivariate econometric analysis (probit and Tobit) reveals a strong positive correlation between partners choices at both the participation and contribution margins, rejecting both the atomistic model (predicting no correlation) and the unitary model with fiscal optimization (predicting concentration of contributions on the higher-earning spouse). De composing the conditional correlation into a permanent and a transitory component highlights active and simultaneous coordination within the couple. In sum, results reject the atomistic and unitary models and are consistent with cooperative models with limited commitment. In particular, the pattern of coefficients in the contribution equations — where indicators of the wife’s stronger economic position are associated with lower contributions to her account — is suggestive of a protective allocation motive, whereby the couple channels more resources to the more financially vulnerable partner. In terms of policy implica tions, results suggest treating the couple as the unit of analysis and reconsidering tax incentives.