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Key determinants of poverty risk in Italy

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Author Info

  • Bernardina ALGIERI

    ()
    (Universita' della Calabria)

  • Antonio AQUINO

    ()
    (Universita' della Calabria)

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    Abstract

    This paper illustrates the main regional differences of Italian poverty and presents an;econometric analysis of the key determinants of poverty risk for the period from 1992 to 2008. The results show that an increase by 1% in the unemployment rate and a lower level of education raise the risk of being trapped in poverty by 0.42% and 1.7%, respectively. Conversely, social protection benefits and higher levels of education attainments contribute significantly to reduce this risk. Since the low rate of employment in "foot-loose activities" is one of the main culprits of the poor economic conditions in Southern Italy, a fiscal measure which aims at promoting automatic incentives to employment in manufacturing activities is suggested. This policy could contribute to securing employment and reducing poverty in a country characterized by a secular divide, with a light burden for public finances, and a positive sideeffect on Italy's balance of payments.

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    Bibliographic Info

    Article provided by SIE - Societa' Italiana degli Economisti (I) in its journal Rivista Italiana degli Economisti.

    Volume (Year): 16 (2011)
    Issue (Month): 3 (December)
    Pages: 411-430

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    Handle: RePEc:rie:review:v:16:y:2011:i:3:n:2

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    Related research

    Keywords: Italy; PSS Autoregressive Distributed Lag; poverty;

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