Key determinants of poverty risk in Italy
AbstractThis 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 InfoArticle provided by SIE - Societa' Italiana degli Economisti (I) in its journal Rivista Italiana degli Economisti.
Volume (Year): 16 (2011)
Issue (Month): 3 (December)
Find related papers by JEL classification:
- E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
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