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Household Structure and Income Inequality

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  • Giovanni D'Alessio
  • Andrea Brandolini

Abstract

This paper examines the effects of demographic structure on the evolution of inequality in Italy from 1977 to 1995, and on its inequality ranking relative to 11 of the other 14 European Union countries in the mid-1990s. The composition of Italian households was substantially different in 1995 both from that observed in the two preceding decades, and from that recorded in other EU countries. The distance between mean equivalent disposable household incomes in various demographic groups varied significantly over time and between countries. Nevertheless, demographic effects on inequality appear on the whole to be secondary. The following results hold, irrespective of the correction for demographic differences: (1) inequality in the distribution of equivalent disposable incomes between persons showed considerable fluctuations but no particular medium-term tendency in Italy; (2) in the mid-1990s Italy was, together with the United Kingdom, the EU country with the highest inequality, a result which is only partly explained by the regional dualism of the Italian economy.

Suggested Citation

  • Giovanni D'Alessio & Andrea Brandolini, 2001. "Household Structure and Income Inequality," LIS Working papers 254, LIS Cross-National Data Center in Luxembourg.
  • Handle: RePEc:lis:liswps:254
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    Cited by:

    1. Carlo Vittorio FIORIO, 2008. "Understanding Italian inequality trends: a simulation-based decomposition," Departmental Working Papers 2008-26, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    2. Fiorio, Carlo V., 2006. "Understanding inequality trends: microsimulation decomposition for Italy," LSE Research Online Documents on Economics 6544, London School of Economics and Political Science, LSE Library.
    3. Claudio Quintano & Rosalia Castellano & Andrea Regoli, 2009. "Evolution and decomposition of income inequality in Italy, 1991–2004," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 18(3), pages 419-443, August.
    4. Salverda, Wiemer & Checchi, Daniele, 2014. "Labour-Market Institutions and the Dispersion of Wage Earnings," IZA Discussion Papers 8220, Institute of Labor Economics (IZA).
    5. Michele Giammatteo, 2007. "The bidimensional decomposition of inequality: A nested Theil approach," LIS Working papers 466, LIS Cross-National Data Center in Luxembourg.
    6. Cecilia García-Peñalosa & Richard Breen & Elsa Orgiazzi, 2008. "Factor Components of Inequality: Cross-Country Differences and Time Changes," LIS Working papers 503, LIS Cross-National Data Center in Luxembourg.
    7. Emanuele Ciani & Roberto Torrini, 2019. "The Geography of Italian Income Inequality: Recent Trends and the Role of Employment," Politica economica, Società editrice il Mulino, issue 2, pages 173-208.

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