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Income inequality between overlapping and stratification: a longitudinal analysis of personal earnings in France and Italy

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  • Rosalia Castellano
  • Rosalba Manna
  • Gennaro Punzo

Abstract

The aim of this paper is to gain new insights into the generation process of personal income in France and Italy, two countries that are in close geographical proximity but have a large disparity in terms of income growth and distribution. In the first step, the potential of EU-SILC balanced panel (2004--2007) is exploited by random effects models, which also make it possible to explore the primary factors that are likely to explain differences in generating personal labour earnings. In the second step, the ANOGI (Analysis of Gini) decomposition enables one to assess the contribution of each sub-population to overall income inequality and the degree to which each subgroup is stratified. A joint evaluation of income determinants gives evidence of the high complexity of inequality process and throws light on the role of gender, skill levels and job characteristics in determining different degrees of income stratification. Indeed, although the high heterogeneity among members of a same subgroup (within-group inequality) explains a large share of overall income inequality, the between-group inequality becomes significant in explaining the income differentials between employment status and occupation types.

Suggested Citation

  • Rosalia Castellano & Rosalba Manna & Gennaro Punzo, 2016. "Income inequality between overlapping and stratification: a longitudinal analysis of personal earnings in France and Italy," International Review of Applied Economics, Taylor & Francis Journals, vol. 30(5), pages 567-590, September.
    • Handle: RePEc:taf:irapec:v:30:y:2016:i:5:p:567-590
    DOI: 10.1080/02692171.2016.1165653
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    References listed on IDEAS

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    1. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
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    Cited by:

    1. Gennaro Punzo & Rosalia Castellano & Mirko Buonocore, 2018. "Job Satisfaction in the “Big Four” of Europe: Reasoning Between Feeling and Uncertainty Through CUB Models," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(1), pages 205-236, August.
    2. Rosalia Castellano & Gaetano Musella & Gennaro Punzo, 2017. "Structure of the labour market and wage inequality: evidence from European countries," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(5), pages 2191-2218, September.
    3. Gennaro Punzo & Mariapina Trunfio & Rosalia Castellano & Mirko Buonocore, 2022. "A Multi-modelling Approach for Assessing Sustainable Tourism," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(3), pages 1399-1443, October.
    4. Matus Barath & Dusana Alshatti Schmidt, 2022. "Offices after the COVID-19 Pandemic and Changes in Perception of Flexible Office Space," Sustainability, MDPI, vol. 14(18), pages 1-17, September.

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