The effect of economic crisis on regional income inequality in Italy

This paper analyzes the determinants of unequal income distribution across macro-regions in Italy, and whether the latest economic crisis has had an effect on income inequality within or between regions. Inequality between individuals and between families appears greatest in the south, and the crisis has exacerbated this phenomenon. Econometric analyses by population groups and by nationality suggest that high educational attainment levels and larger households contribute to increasing the household income, whereas being female and foreign tend to reduce household income. The income distribution of foreign-born individuals tends to be more asymmetric, with heavier tails, compared to that of nationals.