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Does regional cost-of-living reshuffle Italian income distribution?

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  • Riccardo Massari

    (Sapienza, University of Rome, Roma)

  • M. Grazia Pittau

    ()
    (Sapienza, University of Rome, Roma)

  • Roberto Zelli

    (Sapienza, University of Rome, Roma)

Abstract

This paper examines how spatial price differentials affect income distribution in Italy. The distribution of household income is “reshuffled” after controlling for the purchasing power of households residents in different regions, but only when housing price variations are included in the PPP index. Poor households living in Southern Italy alleviate their relative condition, but concentration of poverty still holds in the Southern part of the country.

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2010-166.pdf
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Bibliographic Info

Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 166.

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Length: 11 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2010-166

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Keywords: Income distribution; inequality; regional purchasing power parity; Italy.;

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  1. Riccardo Massari & Maria Pittau & Roberto Zelli, 2009. "A dwindling middle class? Italian evidence in the 2000s," Journal of Economic Inequality, Springer, Springer, vol. 7(4), pages 333-350, December.
  2. Dean Jolliffe & Gaurav Datt & Manohar Sharma, 2004. "Robust Poverty and Inequality Measurement in Egypt: Correcting for Spatial-price Variation and Sample Design Effects," Review of Development Economics, Wiley Blackwell, Wiley Blackwell, vol. 8(4), pages 557-572, November.
  3. Dean Jolliffe, 2006. "Poverty, Prices, and Place: How Sensitive is the Spatial Distribution of Poverty to Cost of Living Adjustments?," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 44(2), pages 296-310, April.
  4. Gong, Cathy Honge & Meng, Xin, 2008. "Regional Price Differences in Urban China 1986-2001: Estimation and Implication," IZA Discussion Papers 3621, Institute for the Study of Labor (IZA).
  5. Reinhold Kosfeld & Hans-Friedrich Eckey, 2008. "Market Access, Regional Price Level and Wage Disparities: The German Case," MAGKS Papers on Economics, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) 200814, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  6. D. Coondoo & A. Majumder & R. Ray, 2004. "A Method of Calculating Regional Consumer Price Differentials with Illustrative Evidence from India," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 50(1), pages 51-68, 03.
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Cited by:
  1. Chao Li & John Gibson, 2013. "Spatial Price Differences and Inequality in China: Housing Market Evidence," Working Papers in Economics, University of Waikato, Department of Economics 13/06, University of Waikato, Department of Economics.
  2. Nicola Amendola & Giovanni Vecchi & Bilal Al Kiswani, 2009. "Il costo della vita al Nord e al Sud d’Italia, dal dopoguerra a oggi. Stime di prima generazione," Rivista di Politica Economica, SIPI Spa, SIPI Spa, vol. 99(2), pages 3-34, April-Jun.

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