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.
Institutional Quality and Income Inequality. Quantile Regression Analysis of Regional Italian Data
Cristian BARRA
;Anna Papaccio
2025
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.File in questo prodotto:
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