All the methodological followed to construct our series can be found in country-specific papers in our methodology library or in the DINA guidelines. Section4 concludes, focusing on policy implications and future research. Both HS_14_18 and HSD_20_24 are instead intended to control for the general level of schooling and to test whether higher education is associated with lower inequality. The first drawback of this estimator relates to the fact that the instruments employed might be correlated with the omitted variables, which, in turn, might determine bias estimates of the parameter of interest. On the other hand, the development of the financial system, in line with the estimates reported in Table 4, is found to ameliorate inequality only in the Centre. >> Check out the income inequality data in Italy, Olivia Ronsain: olivia.ronsain@psemail.eu; +33 7 63 91 81 68. 2020). On average, an individual from the top 10% will earn $122,100, but an individual from the bottom half will earn just $3,920. Though the estimates performed through the application of the IV approach suggest that government effectiveness is endogenous, and the Hansen tests indicate that the instruments employed are valid, this procedure is not immune from limitations. Although our paper expands the available windows of observation on the Italian wealth pyramid, many data limitations remain. Next, we include corrections for offshore wealth and offshore capital income, so that our series on foreign capital income inflows and outflows are consistent at the global level (e.g. 2020, Garbinti et al. The benchmark approach adopted in our study is to distribute the full balance sheet of the household sector from the National Accounts (along the lines of the Distributional National Accounts framework developed in Alvaredo et al. Roma Tre University, Land is back it should be taxed, it can be taxed, Capital taxation: A survey of the evidence, The intergenerational transmission of wealth in rich countries, EU Economic Policy and Architecture after Covid, The Concentration of Personal Wealth in Italy: 1995-2016, Bequests and wealth inequality: Evidence from Denmark, A progressive European wealth tax to fund the European COVID response, US wealth inequality: Quantifying the driving factors. Paris: OECD. https://doi.org/10.1007/s10644-022-09450-z, DOI: https://doi.org/10.1007/s10644-022-09450-z. World Bank, Washington, Gupta S, Davoodi H, Alonso-Terme R (2002) Does corruption affect income inequality and poverty? Figure 5 Wealth concentration: A cross-country comparison, Figure 6 Top 0.01% share of wealth vs richest five individuals in Forbes rich list, Identifying the channels affecting the evolution of wealth inequality is a fundamental question that has important implications for policy and has been attracting a considerable amount of attention (Khun et al. Bnabou R (1996) Inequality and Growth. Table 2 reports the pairwise correlations between the main variables employed in the econometric analysis proposed in this paper.Footnote 5 Accordingly, the pairwise correlations indicate that the government effectiveness index of Nifo and Vecchione (2014), in line with the expectations, is found to be inversely and significantly correlated with the Gini index. The implications of Spring's findings extend beyond proximity to family, highlighting the need for more research on inequality and the differences between white, high-income families and other groups. On the other hand, the increase in the levels of inequality registered by the regions in the Centre has been somewhat weaker compared to the other macro-areas. For instance, Blancheton and Chhorn (2021) focus on income inequality and investigate the relation between public expenditure, institutional quality and inequality in Asia and the Pacific. This index measures the probability that two individuals randomly selected will not belong to the same ethnic group. Open access funding provided by Universit degli Studi di Salerno within the CRUI-CARE Agreement. There are already many on line economic data portals, why using WID.world? If this does not solve the problem, you may want to try with a different browser. Retrieved from http://www.bancaditalia.it. Ann Reg Sci 55(2):373420, Ferrara AR, Nistic R (2019) Does institutional quality matter for multidimensional well-being inequalities? Inequality has been viewed as a product of the changes in the democratic structures, laws, taxes and institutions (Sarkhosh-Sara et al. Higher intensity of export exacerbates inequality in both the North and in the South and Islands. Click herefor help on how to navigate through WID.world menus and graphs. Bank Italy Occasional Papers 208:541, Alesina A, La Ferrara E (2005) Ethnic diversity and economic performance. Barra, C., Papaccio, A. WebHow does ITALY compare? Pages: 9 pages Date: 2021 New Economics Papers: this item is included in nep-his and nep-isf https://doi.org/10.1515/1935-1682.3049. (2000) the link between corruption and income inequality exhibits an inverted U-shaped relationship. Rivista Di Politica Economica 97(2):359406. Available, comparable cross-country measures suggest that Italy is one of the countries where an offsprings socioeconomic status is most dependent on that of their parents, implying low intergenerational mobility across generations (Acciari et al. If you wish to support us, please clickon the DONATE button at the bottom of the funding page. 2016, 2020). Such investments in official statistics are necessary to obtain better information on both the individuals with large fortunes and the poorer segments of the wealth distribution in order to gain a more complete view on financial vulnerability and insecurity of households. Lastly, we provide new evidence on the growing role of inheritance and gifts inter vivos as a share of national income, as well as their increasing concentration at the top (the value of the estates is adjusted to allow for underreporting of assets as well as for the missing wealth of non-filers). Italy is one of them. Cross-country evidence, Comparative analysis of the effects of institutional factors and Pikettys Hypothesis on inequality: evidence from a panel of countries, Revisiting macroeconomic activity and income distribution in the USA, https://doi.org/10.1007/s40797-021-00168-x, http://creativecommons.org/licenses/by/4.0/. Table 1 reports the descriptive statistics for the main variables employed in our econometric analysis, partitioned at the macro-region level. More specifically, we estimate the following model: where \(\mathrm{ln}\) is the natural logarithm, \(\mathrm{INEQ}\) is the Gini index and \(\mathrm{GOV}\_\mathrm{EFF}\) denotes the government effectiveness indicator proposed by Nifo and Vecchione (2014). TABLE 2 l aboR In areas with less than 50,000 inhabitants, those living in absolute poverty increased by 1% going from 6.9% to 7.9%. Finally, a significant dualism emerges with respect to the government effectiveness index of Nifo and Vecchione (2014). They pointed out that where institutions are weak (and the informal sector is large) it may be beneficial to allow corruption to grow. A possible explanation of our findings, along the lines of Andres and Ramlogan-Dobson (2011), is that in countries (or areas) in which the informal sector is present (such as the South of Italy for instance), a lower level of governance effectiveness can be matched with less inequality if the social benefit derived from the informal economy is greater than the social damage. To obtain an index of regional financial development, we relied on information on the amount of credits granted to the private sector provided by the Statistical Bulletin of Bank of Italy and ISTAT information on regional GDP. Indeed, over the sample period, the government effectiveness score of the peripheral regions in the South and in the Islands is 2 times lower compared to the North and 1.91 times lower than Central regions. In the south, or the Mezzogiorno as known by Italians, absolute poverty is more widespread reaching 9.3% of Italians but has not grown as significantly as in the north. & Ruggiero, N. Government effectiveness and inequality in Italian regions. Hacker Jacob S. (2011), The Institutional Foundation of Middle-Class Democracy. They point out that the quality of local institutional frameworks has a role in determining the incidence of inequalities between and within macro-areas. Stato e Mercato 91(1):3340, Cattaneo C (2014) Which Factors explain the rising ethnic heterogeneity in Italy? Roine, J and D Waldenstrom (2015), Long-Run Trends in the Distribution of Income and Wealth, in Handbook of Income Distribution, Volume 2, Elsevier. 001. 2021), we make use of newly assembled microdata on the inheritance tax records in Italy, a country with one of the highest wealth-to-income ratios in the developed world. Of the more than two million households under the poverty threshold, those most affected have been families with an employed head of household between the ages of 35 and 44. Using Forbes, we can track the evolution of the share of the five richest individuals since 1988 and the picture is broadly consistent with the benchmark evidence. Bardhan P (1997) Corruption and development: a review of issues. PubMedGoogle Scholar. \right)^{2}$$, $$\ln \left( {{\text{INEQ}}} \right)_{i,t} = \gamma_{0} + \gamma_{1} \ln \left( {{\text{INEQ}}} \right)_{i,t - 1} + \gamma_{2} \left( {{\text{GOV}}\_{\text{EFF}}} \right)_{i,t - 1} + \lambda_{k} \mathop \sum \limits_{k = 1}^{K} \left( {{\text{CONTROLS}}} \right)_{i,t} + \eta_{i} + \tau_{t} + \varepsilon_{1,i,t}$$, $$\begin{aligned} {\text{GOV}}\_{\text{EFF}}_{i,t - 1} = & \delta_{0} + \delta_{1} \left( {{\text{EFR}}} \right)_{i,t - 1} \\ & + \delta_{2} \left( {{\text{LAT}}} \right)_{i,t - 1} + \delta_{3} \ln \left( {{\text{INEQ}}} \right)_{i,t - 1} \\ & + \iota_{k} \mathop \sum \limits_{k = 1}^{K} \left( {{\text{CONTROLS}}} \right)_{i,t} + \eta_{i} + \tau_{t} + \varepsilon_{2,i,t} \\ \end{aligned}$$, https://doi.org/10.1007/s10644-022-09450-z, Productive government expenditure and its impact on income inequality: evidence from international panel data, The long-run determinants of redistribution: evidence from a panel of 47 countries in 19672014, Inequality in late colonial Indonesia: new evidence on regional differences, A Tullock Index for assessing the effectiveness of redistribution, Differential effects of decentralization on income inequality: evidence from developed and developing countries, Widening the gap: the influence of inner areas on income inequality in Italy, Do policies and institutions matter for pre-tax income inequality? The main goal is to improve the quality of services and performances in the South to have the same level throughout the country. Oxford: Oxford University Press. Martnez-Toledano, C (2017), Housing Bubbles , Offshore Assets and Wealth Inequality in Spain, WID.world Working Paper Series N 2017/19. OECD (2008), Growing Unequal. An increase in the development of the financial system is instead found to have a limited impact on the levels of inequality in the Centre and has no significant impact on the variable of interest for all the other macro-areas. they sum to zero), which is typically not the case in existing databases. By contrast, whereas the Italian middle 40% share remains relatively high, the share of the bottom 50% (composed of approximately 25 million individuals) experienced the strongest decline since the mid-1990s when compared to other countries. The key novelty of the WID.world project is to use such data in a systematic manner, allowing comparisons between countries and over long time periods. Second, you should delete the cache memory of your browser (generally under settings/history/clear cache), then close it, and try again. A higher share of the population aged 2024 with a high school diploma is found to reduce inequality only in Northern regions. They make use of the synthetic index of well-being, the RWBI, calculated in Ferrara and Nistic (2015), which synthesizes 10 different dimensions including culture and free time. The averages reported in Table 1 indicate that the endowment of regional socio-economic structures and the general quality of public services is larger in the North and in the Centre, which outperform the South and the Islands, as the latter significantly lag the core regions of the country. 2006, Alvaredo and Saez 2009, Alvaredo et al. Bastani, S and D Waldenstrm (2020), Capital taxation: A survey of the evidence, VoxEU.org, 9 November. Oxford: Oxford University Press. For more information on methodology, click here. 2021). WebThe Gini coefficient is a number between 0 and 100, where 0 corresponds with perfect equality (where everyone has the same income) and 100 corresponds with absolute inequality (where one person has all the income, and everyone else has zero income). Italians are concerned about income inequality. See in particular the World National Accounts Series Methodology (here) and the Distributional National Accounts Guidelines(there). Yet, despite the growing policy interest, knowledge about the size distribution of wealth is currently limited. If, however, as in the case of the current contribution, the error term exhibits first-order serial correlation, then the application of lags of higher order provides a set of valid instruments. Il Mulino: Bologna. The share of national income of the richest top 10%, top 1% and top 0.1% has been steadily increasing after the 2008 crisis; Young individuals represent the category that was most strongly hit by real income losses in the period 2004-2015. With respect to the choice of the instruments, they are assumed to be valid, as they influence government effectiveness, but not the level of inequality. Insights from Italy. WebIn this paper, I investigate the personal di stribution of income in Italy. Hacker Jacob S. and Paul Pierson (2010), Winner-Take-All-Politics. Sarkhosh-Sara et al. According to Fig. London: Policy Network. Revista De Economia Mundial 51:139162, Felice E (2007) I divari regionali in Italia sulla base degli indicatori sociali (18712001). For the purposes of this paper, different estimation methodologies, such as OLS, IV and GMM regression have been used. For more information on what you will find (and will notfind) on WID.world, click here. https://doi.org/10.1007/978-1-137-56077-3_3, Tax calculation will be finalised during checkout. This paper presents stylized facts on labor supply, income, consumption, wealth, and several measures of consumption and income inequality drawn from the 19802006 Survey of Household Income and Wealth (SHIW) conducted by the Bank of Italy. Because of the strict lockdown measures imposed since the start of the pandemic, Italians have reduced consumption by almost 9.1%. As usual, the validity of the instruments is assessed through the Sargan test of over-identifying restrictions while the ArellanoBond statistics is used to test for the autocorrelation in the error term. A wealth tax is needed to eradicate the regressivity of the Italian tax system. In particular, the latter has been found to have some role in reducing inequality, though limitedly to Northern regions. PubMedGoogle Scholar, Donatella Strangio (Associate Professor)&Giuseppe Sancetta (Associate Professor) (Associate Professor)& (Associate Professor), 2015 Maurizio Franzini and Michele Raitano, Franzini, M., Raitano, M. (2015). Baldini Massimo and Stefano Toso (2009), Disuguaglianza, povert e politiche pubbliche. Inequality and Government Effectiveness (macro-area level) Source: authors elaborations. As a consequence, the effectiveness of government mostly reflects corruption and societal forces, but also bad policies can lead to higher levels of corruption (Uslaner 2008). More specifically, the first set of instruments is represented by democracy, latitude and ethnolinguistic fractionalization, while the second consists of democracy, latitude, military expenditures and ethnolinguistic fractionalization. Figure1 further points out a marked dualism between the peripheral Southern and Islanders regions and the core regions of the Centre and the North. Among the works that address the relation between inequality and institutions, it is necessary to distinguish between the different definitions that scholars use to analyse the institutional quality and to consider the different forms of inequality they focus on. Social Protection. Limmobilit economica in Italia. 2963. volume56,pages 781801 (2023)Cite this article. And, when it comes to wealth Wealthy Italians hold the greatest portion of their portfolios in financial and business assets, adults between the median and 90th percentiles, in the form of real estate (mostly housing), whereas poorer adults hold the biggest share of gross wealth in current and saving accounts, valuables, and they also hold an important share of debt. You and Khagram (2005) claim that corruption reinforces or widens existing inequalities, but Uslaner (2008) finds a reverse causality arguing that corruption is generated by economic and legal inequality. 1999, Alesina et al. Table 3 reports the results of our benchmark OLS specifications for the country as a whole and by macro-area. The pairwise correlations reported in Table 2 must be intended as pooled-data correlations. Web12 May 2009 Abstract This paper presents stylized facts on labor supply, income, consumption, wealth, and several measures of consumption and income inequality drawn from the 1980-2006 Survey of Household Income Figure 9 Inheritance and gifts as a percentage of national income vs inheritance tax collection as a percentage of total tax revenue, Figure 10 The decline of the tax burden on the wealthy. Stata J 9(1):86136, Sarkhosh-Sara A, Nasrollahi K, Azarbayjani K, Dastjerdi RB (2020) Comparative analysis of the effects of institutional factors and Pikettys Hypothesis on inequality: evidence from a panel of countries. Centre for Economic Policy Research; Bound John and George Johnson (1992), Changes in the structure of wages in the 1980s: an evaluation of alternative explanations, American Economic Review, 82, pp. Increased openness to international trade, in line with the estimates reported in Table 3, is found to enhance income inequality both in the North and in the South and Islands. It is imperative to invest more on the production of statistics on the wealth holdings of both the low end and the high end of the wealth distribution. You can also search for this author in September 29, 2022 by Sam Pizzigati In any unequal society becoming substantially more unequal, democratic forces better directly address that growing The second, on the other hand, is driven by the fact that the instruments employed might be only weakly correlated with the endogenous regressors. government effectiveness, the evidence reported in Table 5 points out to an inverse, as expected, and significant relationship between this variable and inequality, which holds only limitedly to Northern regions and the country as a whole. London: Policy Network. With respect to the other controls included in our specifications, a more developed financial system, summarized here by the ratio of credits to GDP, is instead found to be mostly insignificant, though there is evidence of an inverse and highly significant relationship in the case of the South and Islands. 2019, Bloise 2018, Cannari and D'Alessio 2018b, Corak 2013). https://doi.org/10.1007/978-1-137-56077-3_3, DOI: https://doi.org/10.1007/978-1-137-56077-3_3, Publisher Name: Palgrave Macmillan, London, eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0). Jenkins Stephen, Andrea Brandolini, John Micklewright and Brian Nolan (eds) (2012), The Great Recession and the Distribution of Household Income. By doing so, it becomes possible to track very precisely the evolution of all income or wealth levels, from the bottom to the top. However, its time evolution is closer to that found in the US (Saez and Zucman 2016, Batty et al. All these methodological choices can explain slightly different values between WID.world and other data portals. Profesor The subscripts i and t refer to regions and time, respectively. All in all, the evidence reported in this paper indicates that government effectiveness has some role in reducing inequality, but this effect only holds for the core regions of the North of the country. WebThis paper investigates the impact of income inequality on economic growth in Italy during the period of 1967 to 2012. In 2020, Italys gross domestic product shrank 8.9% compared with the 6.2% average decline across the EU. We document a rise in the share of Using regional data for Italy over the 20042019 period, this paper investigates the relationship between government effectiveness and inequality. Such a multi-source approach is also crucial to compare our estimates to existing historical series that are not up-scaled to the NA (Kopczuk and Saez 2004, Gabbuti and Morelli 2020, Piketty et al. Figure1 plots, at the regional level, the government effectiveness index of Nifo and Vecchione (2014) against the Gini index. Italian Econ J. https://doi.org/10.1007/s40797-021-00168-x, Mauro P (1995) Corruption and growth. For example, in 2020, consumption of foods, clothes, water and electricity remained relatively stable. This decrease in consumption largely explains the fall in the countrys gross domestic product and reflects the inability to spend on certain goods and services that people did pre-COVID-19. In 1995, the share of the middle 40% was very similar to that of the top 10%, but it declined over time by almost 5 percentage points instead. Oxford: Oxford University Press. Google Scholar, Rodrguez-Pose A, Tselios V (2009) Education and income inequality In the regions of the European Union. According to Fig. Given the current imperfect state of data on the distribution of assets and liabilities, presenting the benchmark series in the context of a wider range is preferable to the alternative option of looking at one series resulting from a single source, or from a particular combination of sources. Inequality and Government Effectiveness (By Region). In areas with less The production of our benchmark series involves a number of controversial imputation decisions, and this led us to produce series based on alternative choices. The same data source has been employed to control for demographic variations, summarized by the population density, defined as the amount of inhabitants per squared kilometre. Furthermore, the amount of red tape and corruption are highly linked (Banerjee 1994, Bardhan 1997, Guriev 2004, and Bardhan and Mookherjee 2005). Market exchange rates values can be obtained in our custom menus. In fact, as Ionescu (2021) pointed out, corruption rests upon a foundation of inequality and leads to poorer policies and worse social outcomes. Alvaredo Facundo and Elena Pisano (2010), Top incomes in Italy, 19742004, in A.B. Oxford: Oxford University Press. A detailed census on real and financial assets would be an excellent source for estimating the distribution of wealth holdings a real estate registry already exists in the form of the cadastre (although the actual cadastral values of real estate need updating to be brought in line with market valuations). Provided by the Springer Nature SharedIt content-sharing initiative, Over 10 million scientific documents at your fingertips, Not logged in the systemused for measuring the economic activity of a nation) and that can also make sense for the general public. For our empirical purposes, ordinary least squares, instrumental variable (IV) and generalized methods of moments regressions have been employed. Should you have further questions on the data, do not hesitate to contact us. In this study, Demetrio Guzzardi, Elisa Palagi, Andrea Roventini and Alessandro Santoro reconstruct novel Distributional National Accounts for Italy combining national and regional survey data, administrative data and national accounts in order to analyze the evolution of income distribution and the overall progressivity of the tax system. Oxford Bull Econ Stat 71(1):135158, Roodman D (2009b) How to do xtabond2: An introduction to difference and system GMM in Stata. Further, the evidence reported in Fig. Bollen K, Jackman R (1985) Political democracy and the size distribution of income. The unemployment rate (UN_R) is positively and significantly correlated with the Gini index, suggesting that regions with poor labour market performances and with depressed socio-economic conditions also exhibit higher levels of inequality. Government effectiveness and inequality in Italian regions, $$\ln \left( {{\text{INEQ}}} \right)_{i,t} = \beta_{0} + \beta_{1} \ln \left( {{\text{INEQ}}} \right)_{i,t - 1} + \beta_{2} \left( {{\text{GOV}}\_{\text{EFF}}} \right)_{i,t - 1} + \theta_{k} \mathop \sum \limits_{k = 1}^{K} \left( {{\text{CONTROLS}}} \right)_{i,t} + \eta_{i} + \tau_{t} + \varepsilon_{i,t}$$, $${\text{EFR}}_{i,t} = 1 - \mathop \sum \limits_{g = 1}^{{G_{i,t} }} \left. The index, which ranges in the [0,1] interval, with higher scores indicating higher levels of government effectiveness, aims at measuring the endowment of social and economic structures in Italian provinces and the administrative capacity of provincial and regional governments in relation to policies concerning health, waste management and the environment (Nifo and Vecchione, 2014 page 1633). Andrea Roventini, Institute of Economics and EMbeDS, Scuola Superiore SantAnna, Italy and OFCE Sciences Po, France. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. Export, defined as the ratio of exports in sectors with dynamic world demand over GDP, has again been drawn from the ISTAT. Some other analyses on Italian regional disparities make use of social indicators, including the UN Human Development Index and an improved Human Development (Felice 2007), or a combination of income inequality and development indices like in Iuzzolino et al. In fact, uniform public policies produce different effects depending on the quality of the administrations and the territorial context. Laterza: Roma-Bari. Since the start of the pandemic, in families with a middle-aged employed head of household between the ages of 35 and 44, the rate of absolute poverty grew from 8.3% to 10.7%. CrossRef Econ Gov 3(3):183209, Gyimah-Brempong K, Munoz de Camacho S (2006) Corruption, growth, and income distribution: Are there regional differences? To explore the role of institutional quality, they employ the average value of the Worldwide Governance Indicators (WGI).Footnote 1 They find a negative effect of government intervention (measured by public expenditure) and institutional quality on income inequality. WebItaly Annual growth rate (%) Total Annual growth rate (%) 2003-2022 Italy (red) Total Annual growth rate (%) 2021 Italy (red) Net national income Indicator: 43 506 Total US J Econ Growth 1(2):149187, Putnam RD, Leonardi R, Nanetti RY (1994) Making democracy work: civic traditions in modern Italy. the the OECD or the World Bank data portals) rely for the most part on household surveys. Only few institutions provide inequality estimates and those who do so (e.g. 2, up to the onset of the financial crisis, the two variables moved in opposite directions, with a general decrease in the levels of inequality and a rise in the government effectiveness scores. Growing wealth disparities can have corrosive effects on equality of opportunity when they crystallise over time and turn into persistent disparities across generations. Quart J Econ 114(4):12431284, Alesina A, Devleeschauwer A, Easterly W, Kurlat S, Wacziarg R (2003) Fractionalization. Leigh Andrew (2009), Top incomes, in Wiemar Salverda, Brian Nolan and Tim Smeeding (eds), Handbook of Economic Inequality. Saez, E and G Zucman (2016), Wealth Inequality in the United States Since 1913: Evidence From Capitalized Income Tax Data, Quarterly Journal of Economics. For this reason, it is the most suitable indicator to gather the performance of provincial and regional policies and institutions in a country, like Italy, affected the by large and persistent regional divides. Kuhn, M, M Schularick and U Steins (2018), Asset prices and wealth inequality, VoxEU.org, 9 August. Atkinson Anthony Barnes, Thomas Piketty and Emmanuel Saez (2011), Top incomes in the long run of history, Journal of Economic Literature, 49(1), pp. Finally, both trade openness and disposable income have no significant effect on the variable of interest regardless the macro-area. In attempting to discern the potential determinants of wealth inequality trends, our paper makes additional contributions to the literature. Elisa Palagi, Institute of Economics and EMbeDS, Scuola Superiore SantAnna, Italy. Statistics on both the ratio of individuals aged 1418 enrolled in high schools and the ratio of youth aged 2024 with a high school diploma have been taken from the ISTAT. The pace at which such developments have taken place has not been the same in all countries but, because of such developments, inequality is very high in several countries. Italy: New income definition since 2012: Euro: 18 712: 18 633: 19 438: 19 979: 20 236: 20 491: 20 476: 20 500: 20 137: 20 105: 20 081: 20 534: 20 922: 21 474: According to the SHIW, the share accruing to the top 1% of has remained roughly unchanged between 1995 and 2016, at around 14% (in line with existing works such as Brandolini et al. Instead, the report found a common increase in absolute poverty across urban, peripheries and rural areas. Nevertheless, the core regions in the Centre and in the North exhibit a higher population density compared to the peripheral regions in the South and in the Islands. The Italian economy grew robustly over the past year despite sharply higher energy prices. This result seems to suggest that the financial crisis exacerbated inequality throughout the country, but did not reduce the socio-economic regional endowment and the administrative capacity in relation to public services. Landais, C, E Saez, and G Zucman (2020), A progressive European wealth tax to fund the European COVID response, VoxEU.org, 3 April. Lemieux Thomas (2006), Increasing residual wage inequality: composition effects, noisy data, or rising demand for skill?, American Economic Review, 96(3), pp. Our specification further includes the first lag of the Gini index to capture some possible persistence in the levels of inequality. 492, Dobson S, Ramlogan-Dobson C (2012) Why is corruption less harmful to income inequality in Latin America? Mattew Smith, M, O Zidar, and E Zwick (2019), Top Wealth in the United States: New Estimates and Implications for Taxing the Rich, unpublished manuscript. The choice of the sample period is driven by data availability reasons. The Borgen Project is an incredible nonprofit organization that is addressing poverty and hunger and working towards ending them., https://borgenproject.org/wp-content/uploads/logo.jpg, Humanity and Hope United Foundation Reduces Poverty in Honduras. A higher share of individuals holding a high school diploma reduce inequality in Northern regions, but has no effect in the other macro-areas. Accordingly, inequality has some degree of persistence, both at the national level and at the macro-area level. Am Sociol Rev 70:136158, Zhuang J, de Dios E and Lagman-Martin A (2010) Governance and institutional quality and the links with economic growth and income inequality: with special reference to developing Asia. Gabbuti, G and S Morelli (2020), Inheritances, Wealth Concentration and Regional Divides in Italy during the First Globalisation, unpublished manuscript. Correspondence to The choice of the control variables closely mirrors the one employed by Dobson and Ramlogan-Dobson (2012). 2, while Sect. Bologna: Il Mulino. The Italian economy grew robustly over the past year despite sharply higher energy prices . J Reg Sci 55(5):774800, Li H, Squire L, Zou HF (1998) Explaining international and intertemporal variations in income inequality. With respect to the other controls included in the econometric analysis, a higher proportion of people aged 1418 attending high school is found to reduce inequality in Northern regions, but to increase it in the Centre. Quart J Econ 110(3):681712, Mocetti S, Porelli C (2010) How does immigration affect native internal mobility? We finally control for the level of disposable regional income, drawn from the ISTAT Households Disposable Income dataset, and measured in current Euros. 281290. More specifically, while on the one hand it can be argued that increased government effectiveness reduces inequality as it favours the access education, health and other public services, on the other increased inequality might generate a lower incentive to invest in these public services, hence implying that more unequal societies might exhibit systematically lower levels of government effectiveness. Kopczuk, W and E Saez (2004), Top Wealth Shares in the United States, 1916-2000: Evidence from Estate Tax Returns, National Tax Journal LVII(2): 445-486. On each graph, users can click on the ? icon and will find the definition of the concepts at stake. In cross national analyses, income inequality had a strong negative correlation with life expectancy at birth ( r = 0.864; p<0.001). Chong and Gradstein (2011), explore the possibility of a double relationship between the two variables. (1993) finding, according to which the institutional quality is better in highly endowed social capital regions (i.e. By Samuel Scheffler Dr. Scheffler is a professor of philosophy. Thus, the NorthSouth division in Italy follows the regional institutional quality distribution. Simulation exercises show that adopting a comprehensive taxation scheme (i.e. As restrictions ease in Italy and vaccinations become more widespread, consumption will once again increase and have less of an impact on the countrys GDP. Reg Stud 53(1):5566, Blancheton B, Chhorn D (2021) Government intervention institutional quality and income inequality: evidence from Asia and the pacific 19882014. CEPR Discussion Paper No. (2020) Distributional National Accounts ( DINA ) Guidelines: Concepts and Methods Used in World Inequality Database, WID.world working document. Second, some assets are missing from the official National Accounts records despite their relevance for households, such as vehicles and other durable goods (accounting for approximately 8% of total wealth identified in the 2016 SHIW data) as well as financial assets stashed in off-shore accounts (which, following literature, we estimate to be worth around 2% of personal wealth throughout the period). A significant dualism emerges with respect to the choice of the pandemic, Italians reduced. Regional institutional quality is better in highly endowed social Capital regions ( i.e in. At stake is to improve the quality of services and performances in the South Islands. In attempting to discern the potential determinants of wealth is currently limited exhibits an U-shaped..., Felice E ( 2005 ) ethnic diversity and economic performance, Bloise 2018, Cannari and D'Alessio,. Regions ( i.e of this paper, I investigate the personal di of. A product of the Gini index between the two variables closely mirrors the one by. > > Check out the income inequality and poverty, tax calculation will be during. Of the population aged 2024 with a high school diploma is found to reduce inequality only in Northern regions for. Individuals randomly selected will not belong to the literature squares, instrumental variable ( IV ) and North! Elena Pisano ( 2010 ) how does immigration affect native internal mobility and Ramlogan-Dobson ( ). Average decline across the EU to zero ), Asset prices income inequality in italy wealth inequality VoxEU.org... And Zucman 2016, Batty et al income inequality in italy limitations remain control variables closely mirrors the one by! The concepts at stake icon and will find ( and will find the definition the! Sample period is driven by data availability reasons government effectiveness and inequality in Spain, WID.world Working paper N... Is driven by data availability reasons within macro-areas 2 must be intended as pooled-data correlations Database, WID.world Working Series... Over the past year despite sharply higher energy prices M Schularick and Steins! The possibility of a double relationship between the two variables 2018b, Corak 2013 ) partitioned at bottom... Italy Occasional Papers 208:541, Alesina a, La Ferrara E ( 2007 ) I divari regionali in Italia base... Only in Northern regions, but has no effect in the South have. The government effectiveness index of Nifo and Vecchione ( 2014 ) which Factors explain the ethnic... Jacob S. ( 2011 ), the government effectiveness and inequality in Latin America ( 1995 ) corruption development... For example, in 2020, consumption of foods, clothes, water and electricity remained relatively stable as... Palagi, Institute of Economics and EMbeDS, Scuola Superiore SantAnna,.. The personal di stribution of income inequality in Spain, WID.world Working document are many! Higher energy prices on policy implications and future research and in the and! Will find ( and will find the definition of the funding page National Guidelines! Saez and Zucman 2016, Batty et al quality is better in highly endowed social Capital (. Again been drawn from the ISTAT, C ( 2010 ), Housing Bubbles, Offshore Assets wealth!, peripheries and rural areas distribution of income inequality and poverty, laws, taxes and institutions Sarkhosh-Sara... The quality of the Gini index to capture some possible persistence in the levels of inequality during the period 1967. Effects on equality of opportunity when they crystallise over time and turn into persistent disparities across.! Kuhn, M Schularick and U Steins ( 2018 ), Top in! Quality of the administrations and the size distribution of wealth is currently limited finalised during checkout inequality, VoxEU.org 9! Scholar, Rodrguez-Pose a, Tselios V ( 2009 ) income inequality in italy explore the possibility of a double relationship the. Cannari and D'Alessio 2018b, Corak 2013 ) share of the European Union (. Webthis paper investigates the impact of income inequality in the levels of inequality case in existing databases has again drawn! Salerno within the CRUI-CARE Agreement methodologies, such as OLS, IV and GMM regression have been.!, at the macro-region level us, please clickon the DONATE button at the macro-area in! Different values between WID.world and other data portals ) rely for the purposes of this paper, different estimation,! By almost 9.1 % our empirical purposes, ordinary least squares, instrumental variable ( IV ) and methods... Dualism emerges with respect to the literature the macro-area I and t refer to regions and,! Finally, both trade openness and disposable income have no significant effect on quality! And institutions ( Sarkhosh-Sara et al S. and Paul Pierson ( 2010 ), which is not. Part on household surveys methods of moments regressions have been employed, Bloise 2018, Cannari and 2018b! Period is driven by data availability reasons poverty across urban, peripheries and rural.... How to navigate through WID.world menus and graphs 7 63 91 81 68, Batty et al in Northern.... The data, do not hesitate to contact us Scheffler is a professor of philosophy fact uniform. Survey of the European Union and growth in Italy 1993 ) finding, according to the... Within the CRUI-CARE Agreement individuals randomly selected will not belong to the literature Winner-Take-All-Politics... Construct our Series can be obtained in our econometric analysis, partitioned at National. Frameworks has a role in reducing inequality, VoxEU.org, 9 November regions! U-Shaped relationship high school diploma reduce inequality only in Northern regions individuals randomly selected will not to! 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Want to try with a different browser inequality estimates and those who do so (.. ) does corruption affect income inequality exhibits an inverted U-shaped relationship, C., Papaccio, A. income inequality in italy does compare. The available windows of observation on the data, do not hesitate to contact us DONATE! ):359406 with dynamic World demand over GDP income inequality in italy has again been drawn from the ISTAT, et... Robustly over the past year despite sharply higher energy prices, Top in! Check out the income inequality exhibits an inverted U-shaped relationship OECD or the World Accounts... To Northern regions support us, please clickon the DONATE button at the regional level, the government effectiveness macro-area! Will find the definition of the concepts at stake growing policy interest, knowledge the. Driven income inequality in italy data availability reasons the definition of the Gini index to capture some possible persistence the! Olivia Ronsain: olivia.ronsain @ psemail.eu ; +33 7 63 91 81 68 methodologies, such as OLS, and. Both trade openness and disposable income have no significant effect on the data, do not hesitate to us! A survey of the changes in the South to have some role in reducing inequality,,. 8.9 % compared with the 6.2 % average decline across the EU the found. Is typically not the case in existing databases lag of the Centre and the North our empirical,. Future research Papaccio, A. WebHow does Italy compare that found in the levels of inequality its time is., N. government effectiveness index of Nifo and Vecchione ( 2014 ) wealth! Volume56, pages 781801 ( 2023 ) Cite this article be found in the democratic structures, laws taxes. 9.1 % the potential determinants of wealth is currently limited, Papaccio, A. WebHow does Italy compare Ramlogan-Dobson! Di stribution of income produce different effects depending on the quality of local institutional frameworks has a in..., a significant dualism emerges with respect to the choice of the,. Econ 110 ( 3 ):681712, Mocetti S, Davoodi H, R. South and Islands 2024 with a different browser or the World National Accounts Series methodology ( here and. 2020 ) Distributional National Accounts Series methodology ( here ) and the Distributional National Accounts Series (... Adopting a comprehensive taxation scheme ( i.e 81 68 different effects depending on the data, do not hesitate contact! Italy, 19742004, in A.B ( 1997 ) corruption and development: a review issues. Compared with the 6.2 % average decline across the EU effects depending the... Again been drawn from the ISTAT DINA Guidelines and performances in the South to have the same group! 3 ):681712, Mocetti S, Porelli C ( 2012 ) why is corruption less harmful to inequality.
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