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Infrastructures and Income Inequality: The Case of Italian Provinces

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  • Alexandra D'Onofrio
  • Paolo E. Giordani

Abstract

This paper studies the relation between infrastructure endowment and income inequality across Italian provinces over the period 2001-2015. Using data from the "Ministero dell'Economia e Finanza" (MEF), we construct measures of income inequality for each province (Gini index and Theil index). The stock of infrastructures by province is measured by a set of indicators of physical endowments built by the Istituto Tagliacarne. The empirical analysis confirms the existence of a negative effect of the total infrastructure endowment on income inequality. This effect is mainly driven by transport and energy infrastructures. In contrast, other sub-components of infrastructure endowment, such as technological and banking infrastructures as well as cultural/entertainment networks, accentuate income inequality. We then show that infrastructures have a positive effect on the incomes of both the relatively poor classes (20% poorest class), the median and the richest class (10% richest), while they have no effect on the poorest 10% of the population. Finally, a north/south analysis of Italy suggests that the infrastructure deficit of the southern provinces might play a role in explaining their higher income inequality compared to the northern provinces.

Suggested Citation

  • Alexandra D'Onofrio & Paolo E. Giordani, 2019. "Infrastructures and Income Inequality: The Case of Italian Provinces," Politica economica, Società editrice il Mulino, issue 1, pages 27-54.
  • Handle: RePEc:mul:je8794:doi:10.1429/93306:y:2019:i:1:p:27-54
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    Cited by:

    1. Taena, Werenfridus & Sipayung, Boanerges Putra & Blegur, Fried Markus Allung & Klau, Anggelina Delviana, 2023. "Impact of agricultural infrastructure development on inequality and optimization equality of farmers’ income in Indonesia-Timor Leste Border Area," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 13(04), January.
    2. Shubin Wang & Junsheng Ha & Hakan Kalkavan & Serhat Yüksel & Hasan Dinçer, 2020. "IT2-Based Hybrid Approach for Sustainable Economic Equality: A Case of E7 Economies," SAGE Open, , vol. 10(2), pages 21582440209, May.
    3. Adams, Samuel & Akobeng, Eric, 2021. "ICT, governance and inequality in Africa," Telecommunications Policy, Elsevier, vol. 45(10).

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