Abstract

This paper exploits the tax records for an analysis of the geography of income inequality in Italy. In 2011, the Gini coefficient, the most common measure of inequality, was 40 percent. In the South the index 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 higher in major metropolitan areas. The Gini index has been increasing during the Great Recession. This pattern has been driven by a reduction of incomes, larger for individuals below the median. Regional disparities have been increasing as well.