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Institutional Quality and Income Inequality. Quantile Regression Analysis of Regional Italian Data

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  • Cristian Barra
  • Anna Papaccio

Abstract

The aim of this study is to determine whether the quality of Italian institutions is a significant factor in economic inequality and whether the result contributes to an explanation of the North‐South divide in Italy. To test our hypothesis, we use a quantile regression on regional data for Italy from 2004 to 2019. The results suggest that higher institutional quality plays a crucial role in reducing income inequality. This is particularly true in situations where income inequality is very high. Our empirical results were confirmed by a series of robustness checks, which also have important policy implications.

Suggested Citation

  • Cristian Barra & Anna Papaccio, 2025. "Institutional Quality and Income Inequality. Quantile Regression Analysis of Regional Italian Data," Journal of Regional Science, Wiley Blackwell, vol. 65(4), pages 1216-1236, September.
    • Handle: RePEc:bla:jregsc:v:65:y:2025:i:4:p:1216-1236
    DOI: 10.1111/jors.70000
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