2025/07/04 by Cristian Barra, Anna Papaccio · 1 citation
Economics, Econometrics and Finance · #Italy: Economic History and Contemporary Issues #Economic Growth and Productivity #Economic Policies and Impacts
paper · doi:10.1111/jors.70000
ABSTRACT The aim of this study is to determine whether the quality of Italian institutions is a significant factor in economic inequality and whether the result contributes to an explanation of the North‐South divide in Italy. To test our hypothesis, we use a quantile regression on regional data for Italy from 2004 to 2019. The results suggest that higher institutional quality plays a crucial role in reducing income inequality. This is particularly true in situations where income inequality is very high. Our empirical results were confirmed by a series of robustness checks, which also have important policy implications.