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Wars, Depression, and Fascism: Income Inequality in Italy, 1901-1950

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  • Gómez-León, María
  • Gabbuti, Giacomo

Abstract

This paper presents yearly estimates of income inequality in Italy from 1901 to 1950. By constructing dynamic social tables, we comprehensively assess inequality across all elements of Italian society and compare Italy with other countries over the same period. In a context of declining inequality across Europe, interwar Italy reveals a trajectory at odds with consolidated narratives: a sharp increase of inequality during World War I, a reversal during 1918–1922, a renewed rise after the Fascist takeover, and new peaks during World War II. Our results allow us to identify sizeable short-term distributive shocks and discuss the political economy of fascist Italy, reinforcing a reinterpretation of interwar inequality trends in Europe and the regressive nature of fascist regimes.

Suggested Citation

  • Gómez-León, María & Gabbuti, Giacomo, 2025. "Wars, Depression, and Fascism: Income Inequality in Italy, 1901-1950," Explorations in Economic History, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:exehis:v:98:y:2025:i:c:s0014498325000622
    DOI: 10.1016/j.eeh.2025.101715
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    Keywords

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-

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