Autore
Casalone, C.

Titolo
The Evolution of Inequality and Poverty in Italy: 1987-2006
Periodico
Università degli Studi del Piemonte Orientale 'A. Avogadro' : Facoltà di Economia - Dipartimento di Scienze Economiche e Metodi Quantitativi "SEMEQ" - Quaderni
Anno: 2009 - Fascicolo: 5 - Pagina iniziale: 1 - Pagina finale: 36

In this paper we study the evolution of poverty and inequality in Italy in the period 1987-2006 with a particular attention to their determinants. By using decomposable inequality and poverty indexes we look at five population characteristics: gender, area of residence, class age, education and employment condition Given the definition of non overlapping groups we examine, as regards to inequality, the weights of the "within" and of the "between" components and, as regards to poverty, the so called "poverty risk". Finally we consider some counterfactual exercises as to find out the effect of the changes occurred in the demographic composition of the groups and in the subgroups specific inequality or poverty indexes as well. Concerning the overall inequality and poverty, the results show that inequality has been increasing in the analyzed period while (relative) poverty indexes present a more stable trend. Besides, the different pattern of the inequality indexes calculated suggest that the evolution of income has not been homogeneous along the distribution. As regards the decomposition exercise we find that although inequality is mainly driven by the within component as expected, the evolution of the between component has been remarkable especially when considering the decompositions by area of residence and education. Concerning poverty again we find that the most relevant differences depend on the area of residence, the educational level and the employment condition. We however find that poverty has been increasing among women and young people. Finally also the demographic changes which reflect in the group composition have affected the evolution of both inequality and poverty.




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