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Institutional Quality and Income Inequality. Quantile Regression Analysis of Regional Italian Data

Year: 2025

Type: article

Abstract: 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.

Source: Journal of Regional Science

DOI: 10.1111/jors.70000

Authors: Cristian Barra, Anna Papaccio

Institution: University of Salerno

Language: English

Topic: Income, Poverty, and Inequality

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDG: Reduced inequalities

Open Access status: hybrid

Estimated APC paid: $3,730