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Widening the gap: the influence of ‘inner areas’ on income inequality in Italy

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  • Giovanni Gallo

    (University of Modena and Reggio Emilia
    National Institute for Public Policies Analysis)

  • Francesco Pagliacci

    (University of Modena and Reggio Emilia
    Università di Padova)

Abstract

Using administrative municipality-level data on fiscal declarations, we estimate the influence of ‘inner areas’ in the income distribution across Italy. To do that, we apply influence function regressions methods developed by Firpo et al. (Econometrica 77(3):953–973, 2009) to examine to what extent rurality and inner areas affect income inequality measures. Results highlight that inner areas have a positive effect in the Gini index, and a negative one in mean and median income. These effects are stable, in terms of magnitude, from 2012 to 2015. They hold even when controlling socioeconomic characteristics and region-level fixed effects. Impacts turn out to vary across Italian macro-regions.

Suggested Citation

  • Giovanni Gallo & Francesco Pagliacci, 2020. "Widening the gap: the influence of ‘inner areas’ on income inequality in Italy," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(1), pages 197-221, April.
    • Handle: RePEc:spr:epolit:v:37:y:2020:i:1:d:10.1007_s40888-019-00157-5
    DOI: 10.1007/s40888-019-00157-5
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    Cited by:

    1. Graziella Bonanno & Filippo Domma & Lucia Errico, 2022. "Income Inequality And Inner Areas. A Study On The Italian Case," Working Papers 202203, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    2. Luca Bonacini & Giovanni Gallo & Sergio Scicchitano, 2021. "Working from home and income inequality: risks of a ‘new normal’ with COVID-19," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(1), pages 303-360, January.

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    More about this item

    Keywords

    Inner areas; Inequality; Unconditional quantile regressions; Poverty;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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