Pensions reforms, workforce ageing and firm-provided welfare

This paper investigates the impact of an exogenous increase in the legal retirement age on the firms’ propensity to provide welfare services voluntarily to their employees. To this purpose we exploit a unique dataset derived from the Employers and Employees Survey, conducted by the National Institute for Public Policies Analysis (Inapp) in 2015 on a large and representative sample of Italian firms. By referring to the existing sociological and economic literature we make the hypothesis that a sudden increase in the share of older workers may motivate the employers to establish welfare schemes as a way to cope with an ageing workforce. The results obtained from different regression models show that firms which, as a consequence of the Law 214/2011 (the so-called “Fornero pension reform”), were forced to give up previously planned hirings increased the probability of providing welfare services at the workplace. This result also holds if propensity score matching methods are used in order to control for sample selection issues.