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Assessing Italy’s Severino Law: impacts on corruption control and inequality

Author

Listed:
  • Laura Lopez-Gomez

    (Universidad Politécnica de Cartagena)

  • Laura Policardo

    (Italian Ministry of Labor and Social Policies)

  • Edgar J. Sanchez-Carrera

    (University of Florence
    Research Fellow at CIMA UAdeC)

Abstract

The evaluation of public policies is an increasingly important issue that demands greater attention. This study examines the impact of the Severino Law (2012) on corruption control and inequality in Italy. Using a robust quantitative approach for the period 2002–2022, we apply difference-in-differences (DiD), the synthetic control method (SCM), and a multivariate adaptive regression splines (MARS) model. Our findings indicate that while the law significantly improved corruption control—albeit with a delayed effect—it did not reduce inequality as anticipated, which instead continued to rise. This outcome stands in contrast to the predictions of much of the empirical literature. The results suggest that the direct effects of corruption control on inequality can be highly idiosyncratic and do not operate in a linear or isolated manner. Rather, they depend on the extent to which corrupt behaviors are reduced and on the presence of complementary policies beyond anti-corruption reforms to effectively address structural inequality.

Suggested Citation

  • Laura Lopez-Gomez & Laura Policardo & Edgar J. Sanchez-Carrera, 2025. "Assessing Italy’s Severino Law: impacts on corruption control and inequality," International Economics and Economic Policy, Springer, vol. 22(4), pages 1-29, October.
    • Handle: RePEc:kap:iecepo:v:22:y:2025:i:4:d:10.1007_s10368-025-00687-3
    DOI: 10.1007/s10368-025-00687-3
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    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • E71 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on the Macro Economy
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • P43 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Finance; Public Finance

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