2024/16 | LEM Working Paper Series | ||||||||||||||||
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A New Geography of Inequality: Top incomes in Italian Regions and Inner Areas |
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Demetrio Guzzardi and Salvatore Morelli |
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Keywords | |||||||||||||||||
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Income Inequality; Top Income Shares; Italy; Inner Areas; Spatial Inequality; Income Tax Data; National Accounts
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JEL Classifications | |||||||||||||||||
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D31, H20, J3, R1
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Abstract | |||||||||||||||||
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Detailed distributional estimates at finer geographical levels remain
scarce, despite their critical relevance for household well being and
policy intervention. This paper leverages Italian income tax records
dating back to 1976 focusing on top income concentration and
inequality across the country’s regions, macro-areas, and the recently
introduced classification of the National Strategy for Inner Areas
(SNAI). Our analysis reveals a persistent rise in income concentration
over the past few decades, particularly among the top earners, while
also highlighting nuanced regional and sub-regional dynamics. Notably,
city size plays a crucial role, with larger cities experiencing a more
pronounced level of income concentration compared to smaller
ones. Southern regions exhibit lower income concentration levels among
the top income groups, emphasizing the need for disaggregated analyses
to capture these complexities accurately.
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