The geography of income inequality in Italy

This paper exploits the tax records to analyze the geography of income inequality in Italy. In 2011, the Gini coefficient, the most common measure of inequality, was 40 per cent at national level. In the South it was 3 percentage points higher than in the Centre-North, mainly because of a smaller share of income held by the lower tail of the distribution. Inequality is also greater in major metropolitan areas. The Gini index has been increasing during the Great Recession. This pattern has been driven by a reduction in incomes, which has been more pronounced for individuals below the median. Regional disparities have been increasing as well.