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Widening the gap: the influence of ‘inner areas’ on income inequality in Italy

Widening the gap: the influence of ‘inner areas’ on income inequality in Italy Using administrative municipality-level data on fiscal declarations, we estimate the influence of ‘inner areas’ in the income distribution across Italy. To do that, we apply influence function regressions methods developed by Firpo et al. (Econometrica 77(3):953–973, 2009) to examine to what extent rurality and inner areas affect income inequality measures. Results highlight that inner areas have a positive effect in the Gini index, and a negative one in mean and median income. These effects are stable, in terms of magnitude, from 2012 to 2015. They hold even when controlling socioeconomic characteristics and region-level fixed effects. Impacts turn out to vary across Italian macro-regions. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png "Economia Politica" Springer Journals

Widening the gap: the influence of ‘inner areas’ on income inequality in Italy

Gallo, Giovanni; Pagliacci, Francesco
"Economia Politica" , Volume 37 (1) – Apr 29, 2020
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References (35)

Publisher
Springer Journals
Copyright
Copyright © Springer Nature Switzerland AG 2019
ISSN
1120-2890
eISSN
1973-820X
DOI
10.1007/s40888-019-00157-5
Publisher site
See Article on Publisher Site

Abstract

Using administrative municipality-level data on fiscal declarations, we estimate the influence of ‘inner areas’ in the income distribution across Italy. To do that, we apply influence function regressions methods developed by Firpo et al. (Econometrica 77(3):953–973, 2009) to examine to what extent rurality and inner areas affect income inequality measures. Results highlight that inner areas have a positive effect in the Gini index, and a negative one in mean and median income. These effects are stable, in terms of magnitude, from 2012 to 2015. They hold even when controlling socioeconomic characteristics and region-level fixed effects. Impacts turn out to vary across Italian macro-regions.

Journal

"Economia Politica" – Springer Journals

Published: Apr 29, 2020

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