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Growth and inequality effects on poverty reduction in Italy

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Author Info
Vincenzo Lombardo
Abstract

This paper deals with the evaluation of poverty sensitivity to growth and distributional changes in Italy, across its regions and over a three- decade period, spanning from 1977 to 2004. We use the "Survey on Household Income and Wealth" (SHIW) of the Bank of Italy to firstly construct growth incidence curves. After estimating the size income distribution, we evaluate the income and the inequality elasticities of poverty. Growth strongly determines the patterns of poverty; however, inequality appears to have strikingly characterized it as well. The difference between North, Centre and South can be due to the different income elasticity of poverty, which in turn depends on the initial conditions of inequality and level of development.

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Paper provided by D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy in its series Discussion Papers with number 9_2008.

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Date of creation: 31 Jul 2008
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Handle: RePEc:prt:dpaper:9_2008

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Find related papers by JEL classification:
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions
I3 - Health, Education, and Welfare - - Welfare and Poverty
O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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    Other versions:
  2. Kalwij, Adriaan & Verschoor, Arjan, 2007. "Not by growth alone: The role of the distribution of income in regional diversity in poverty reduction," European Economic Review, Elsevier, vol. 51(4), pages 805-829, May. [Downloadable!] (restricted)
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    Other versions:
  4. Ravallion, Martin, 2005. "A poverty-inequality trade-off?," Policy Research Working Paper Series 3579, The World Bank. [Downloadable!]
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  5. Son, Hyun Hwa, 2004. "A note on pro-poor growth," Economics Letters, Elsevier, vol. 82(3), pages 307-314, March. [Downloadable!] (restricted)
  6. Ravallion, Martin & Chen, Shaohua, 2003. "Measuring pro-poor growth," Economics Letters, Elsevier, vol. 78(1), pages 93-99, January. [Downloadable!] (restricted)
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  7. Tindara Addabbo, 2000. "Poverty Dynamics: Analysis of Household Incomes in Italy," LABOUR, CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd, vol. 14(1), pages 119-144, 03. [Downloadable!] (restricted)
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  15. Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April. [Downloadable!] (restricted)
  16. Timothy Besley & Robin Burgess, 2003. "Halving Global Poverty," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 3-22, Summer. [Downloadable!] (restricted)
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