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Does regional cost-of-living reshuffle Italian income distribution?

Author

Listed:
  • Riccardo Massari

    (Sapienza, University of Rome, Roma)

  • M. Grazia Pittau

    () (Sapienza, University of Rome, Roma)

  • Roberto Zelli

    (Sapienza, University of Rome, Roma)

Abstract

This paper examines how spatial price differentials affect income distribution in Italy. The distribution of household income is “reshuffled” after controlling for the purchasing power of households residents in different regions, but only when housing price variations are included in the PPP index. Poor households living in Southern Italy alleviate their relative condition, but concentration of poverty still holds in the Southern part of the country.

Suggested Citation

  • Riccardo Massari & M. Grazia Pittau & Roberto Zelli, 2010. "Does regional cost-of-living reshuffle Italian income distribution?," Working Papers 166, ECINEQ, Society for the Study of Economic Inequality.
  • Handle: RePEc:inq:inqwps:ecineq2010-166
    as

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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2010-166.pdf
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    References listed on IDEAS

    as
    1. Riccardo Massari & Maria Pittau & Roberto Zelli, 2009. "A dwindling middle class? Italian evidence in the 2000s," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 7(4), pages 333-350, December.
    2. D. Coondoo & A. Majumder & R. Ray, 2004. "A Method of Calculating Regional Consumer Price Differentials with Illustrative Evidence from India," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 50(1), pages 51-68, March.
    3. Reinhold Kosfeld & Hans-Friedrich Eckey, 2010. "Market access, regional price level and wage disparities: the German case," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 30(2), pages 105-128, September.
    4. Gong, Cathy Honge & Meng, Xin, 2008. "Regional Price Differences in Urban China 1986-2001: Estimation and Implication," IZA Discussion Papers 3621, Institute for the Study of Labor (IZA).
    5. Dean Jolliffe & Gaurav Datt & Manohar Sharma, 2004. "Robust Poverty and Inequality Measurement in Egypt: Correcting for Spatial-price Variation and Sample Design Effects," Review of Development Economics, Wiley Blackwell, vol. 8(4), pages 557-572, November.
    6. Dean Jolliffe, 2006. "Poverty, Prices, and Place: How Sensitive is the Spatial Distribution of Poverty to Cost of Living Adjustments?," Economic Inquiry, Western Economic Association International, vol. 44(2), pages 296-310, April.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Nicola Amendola & Giovanni Vecchi & Bilal Al Kiswani, 2009. "Il costo della vita al Nord e al Sud d’Italia, dal dopoguerra a oggi. Stime di prima generazione," Rivista di Politica Economica, SIPI Spa, vol. 99(2), pages 3-34, April-Jun.
    2. Chao Li & John Gibson, 2013. "Spatial Price Differences and Inequality in China: Housing Market Evidence," Working Papers in Economics 13/06, University of Waikato.

    More about this item

    Keywords

    Income distribution; inequality; regional purchasing power parity; Italy.;

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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