Inequality Trends in a Slow-Growing Economy:Italy 1990-2020

CSEF WORKING PAPER N . 679 Daniele Checchi, Tullio Jappelli, Immacolata Marino, Annalisa Scognamiglio

We review trends in inequality in Italy, one of the most unequal countries among the OECD.
Over the last three decades, Italy experienced four recessions originated from rather different
shocks: debt stabilization following the Maastricht treaty, the financial crisis, the sovereign debt
crisis, and the pandemic. The aftermath of each recession was followed by limited recoveries,
producing an overall period of stagnant growth. This reflected into absent productivity growth
followed by stagnant real wages.
Over the period, the country experienced increased labour market participation, due to
increased flexibility in labor market regulation, combined with fragmentation of working hours.
The recessions that occurred in first decades of the millennium were embedded in a geographical
divide, which has not been reduced over the period of analysis. Since the overall labour demand
did not increase, the fragmentation of work opportunities increased the share of working poors […] http://www.csef.it/WP/wp679.pdf