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Inequality and poverty during the recession in Italy

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  • Massimo Baldini
  • Emanuele Ciani

Abstract

This paper simulates the effects of the recent economic crisis on income inequality and poverty in Italy. We impute changes in employment rates estimated from the Labour force survey on the Italian SILC sample. The resulting increase in unemployment benefits is simulated in detail, together with the expansion of the Cassa Integrazione Guadagni, a wage supplement fund that has played a crucial role during the crisis. Our simulations suggest that the crisis has increased inequality and poverty levels, in particular for households with children and for the younger cohorts of workers. We also show that a reform of unemploymentbenefits towards universalism would have significantly contained these effects.

Suggested Citation

  • Massimo Baldini & Emanuele Ciani, 2011. "Inequality and poverty during the recession in Italy," Politica economica, Società editrice il Mulino, issue 3, pages 297-322.
    • Handle: RePEc:mul:je8794:doi:10.1429/36591:y:2011:i:3:p:297-322
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    References listed on IDEAS

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    1. Bruno Anastasia & Massimo Mancini & Ugo Trivellato, 2009. "(Il sostegno al reddito dei disoccupati: note sullo stato dell'arte, inerzie dell'impianto categoriale e incerti orizzonti di flexicurity (A note on italian Unemployment Compensation schemes)," ISAE Working Papers 112, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
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    Cited by:

    1. Elena Giarda & Gloria Moroni, 2018. "The Degree of Poverty Persistence and the Role of Regional Disparities in Italy in Comparison with France, Spain and the UK," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 136(1), pages 163-202, February.
    2. Massimo Baldini, 2014. "Fiscal austerity and income distribution in Italy," Center for the Analysis of Public Policies (CAPP) 0112, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".
    3. Enrico Fabrizi & Chiara Mussida, 2020. "Assessing poverty persistence in households with children," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 18(4), pages 551-569, December.
    4. Laura Barbieri & Chiara Mussida, 2018. "Structural differences across macroregions: an empirical investigation," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 45(2), pages 215-246, May.
    5. Enrico Fabrizi & Chiara Mussida, 2018. "Assessing poverty persistence in households with dependent children: the role of poverty measurement," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1839, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).

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    1. Stefano Sacchi & Patrik Vesan, 2011. "Interpreting employment policy change in Italy since the 1990s: nature and dynamics," Carlo Alberto Notebooks 228, Collegio Carlo Alberto.
    2. Tindara Addabbo & Anna Maccagnan, 2011. "The Italian Labour Market and the Crisis," Center for the Analysis of Public Policies (CAPP) 0086, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".

    More about this item

    Keywords

    Italy; economic crisis; employment rates; unemployment benefits; inequality; poverty; microsimulation. J.E.L. Classification: C63; I30; I38.;
    All these keywords.

    JEL classification:

    • C - Mathematical and Quantitative Methods

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