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Inequality across cohorts of households: evidence from Italy

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  • Gabriella Berloffa

  • Paola Villa

Abstract

In this paper we examine the evolution of household equivalent income for "cohorts of households" defined by the age of the household's head, using Italian data from the Survey of Household Income and Wealth (SHIW), for the period between 1989 and 2004. The descriptive and econometric analysis reveals a deterioration of the economic conditions and prospects of young cohorts of households in comparison with older cohorts. This phenomenon is due to the joint occurrence of various events, like the institutional changes of the labour market, the poor economic performance of the economy and its adverse effects on white and blue collars, the new rules introduced for the pension system, and an exceptional increase in house prices and rents. Decreasing returns to education, the reduction in household size and the increase in the number of income recipients - due to both rising female participation and children living longer with their parents - are also found to have significant effects on the differences between cohorts at the same age.

Suggested Citation

  • Gabriella Berloffa & Paola Villa, 2007. "Inequality across cohorts of households: evidence from Italy," Department of Economics Working Papers 0711, Department of Economics, University of Trento, Italia.
    • Handle: RePEc:trn:utwpde:0711
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    References listed on IDEAS

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    5. Lars Osberg, 2003. "Long Run Trends in Income Inequality in the United States, UK, Sweden, Germany and Canada: A Birth Cohort View," Eastern Economic Journal, Eastern Economic Association, vol. 29(1), pages 121-141, Winter.
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    Cited by:

    1. Berloffa, Gabriella & Modena, Francesca, 2012. "Economic well-being in Italy: The role of income insecurity and intergenerational inequality," Journal of Economic Behavior & Organization, Elsevier, vol. 81(3), pages 751-765.
    2. Annamaria Simonazzi & Paolo Villa & Federico Lucidi, 2008. "Continuity and Change in the Italian Model: Italy's Laborious Convergence towards the European Social Model," Working Papers in Public Economics 108, Department of Economics and Law, Sapienza University of Roma.

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D30 - Microeconomics - - Distribution - - - General
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General

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