Abstract We show by a simple difference‐in‐difference methodology that, contrary to prior research, robustly raising the deductibility limit associated to pension fund holdings in Italy did not succeed in
boosting households’ contributions to this form of savings. Some other empirical findings also suggest that this policy measure may have not even increased the average amount of first‐time contributors to such funds. In view of the specific features of the Italian market for complementary
insurance (relatively young and less developed), these empirical results might be of interest to policymakers acting in countries with similar features (for instance, some of the more recent EU members).