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Growth and inequality effects on poverty reduction in Italy

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  • Lombardo, Vincenzo
Abstract
This paper deals with the evaluation of poverty sensitivity to growth and distributional changes in Italy, across its regions and over a three-decade period, spanning from 1977 to 2004. We use the “Survey on Household Income and Wealth” (SHIW) of the Bank of Italy to firstly construct growth incidence curves. After estimating the size income distribution, we evaluate the income and the inequality elasticities of poverty. Growth strongly determines the patterns of poverty; however, inequality appears to have strikingly characterized it as well. The difference between North, Centre and South can be due to the different income elasticity of poverty, which in turn depends on the initial conditions of inequality and level of development.

Suggested Citation

  • Lombardo, Vincenzo, 2008. "Growth and inequality effects on poverty reduction in Italy," MPRA Paper 14351, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:14351
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    Cited by:

    1. Cunming Zou & Jianzhi Liu & Bencheng Liu & Xuhan Zheng & Yangang Fang, 2019. "Evaluating Poverty Alleviation by Relocation under the Link Policy: A Case Study from Tongyu County, Jilin Province, China," Sustainability, MDPI, vol. 11(18), pages 1-20, September.
    2. Mehmet Mercan & Ozlem Azer, 2013. "The Relationship between Economic Growth and Income Distribution in Turkey and the Turkish Republics of Central Asia and Caucasia: Dynamic Panel Data Analysis with Structural Breaks," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 3(2), pages 165-182, December.
    3. Tindara Addabbo & Rosa García-Fernández & Carmen Llorca-Rodríguez & Anna Maccagnan, 2013. "The effect of the crisis on material deprivation in Italy and Spain," Department of Economics (DEMB) 0019, University of Modena and Reggio Emilia, Department of Economics "Marco Biagi".
    4. Ahmed Raza Cheema & Ahmed Raza Cheema, 2012. "Poverty, Income Inequality, and Growth in Pakistan: A Pooled Regression Analysis," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(2), pages 137-157, July-Dec.
    5. Zaman, Khalid & Khilji, Bashir Ahmad, 2013. "The relationship between growth–inequality–poverty triangle and pro-poor growth policies in Pakistan: The twin disappointments," Economic Modelling, Elsevier, vol. 30(C), pages 375-393.
    6. Andrea Brandolini & Giovanni Vecchi, 2011. "The Well-Being of Italians: A Comparative Historical Approach," Quaderni di storia economica (Economic History Working Papers) 19, Bank of Italy, Economic Research and International Relations Area.
    7. Parewangi, Andi M. Alfian & Iskandar, Azwar, 2020. "The Nexus of Islamic Finance and Poverty," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 61(2), pages 111-139, December.
    8. Hasna Khemili & Mounir Belloumi, 2018. "Cointegration Relationship between Growth, Inequality and Poverty In Tunisia," International Journal of Applied Economics, Finance and Accounting, Online Academic Press, vol. 2(1), pages 8-18.

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    More about this item

    Keywords

    Pro-poor growth; distribution; poverty;
    All these keywords.

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions

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