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The contribution of tax statistics for analysing regional income disparities in Italy

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  • Paolo Di Caro

    (Department of Finance; Ministry of Economy and Finance; Italy and Portsmouth Business School, University of Portsmouth; U.K.)

Abstract

The study of income inequality within countries is becoming of particular importance, also in the light of the spatial effects of the Great Recession. This paper uses newly available tax record data on the Italian case for providing novel evidence on regional income disparities in this country. Three main objectives are achieved. Income disparities in Italy are characterized by within- and across- regional patterns. Specific dimensions of analysis such as gender, age class, and households’ composition provide additional insights on inequalities in this country. The place-specific effects of the Italian personal income tax and its main elements are quantified and interpreted. Specifically, the redistributive capacity of tax schedules and tax expenditures across and within regions is investigated. In addition, the potential original role of using tax files for studying inequality issues in Italy as in other countries is discussed. The final sections summarises and presents some possible future avenues of research.

Suggested Citation

  • Paolo Di Caro, 2017. "The contribution of tax statistics for analysing regional income disparities in Italy," Journal of Income Distribution, Ad libros publications inc., vol. 25(1), pages 1-27, March.
    • Handle: RePEc:jid:journl:y:2017:v:25:i:1:p:1-27
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    Cited by:

    1. Demetrio Guzzardi & Salvatore Morelli, 2024. "A New Geography of Inequality: Top incomes in Italian Regions and Inner Areas," World Inequality Lab Working Papers halshs-04753481, HAL.
    2. repec:osf:socarx:b2yue_v1 is not listed on IDEAS
    3. Paolo Di Caro, 2018. "Redistribution in real-world PIT: Evidence from Italian tax records," Working Papers wp2018-2, Ministry of Economy and Finance, Department of Finance.

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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