Bridging the divide: Growth, inequality, and poverty dynamics in Italy

Michele Fabiani ()
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Michele Fabiani: eCampus University

Economics Bulletin, 2025, vol. 45, issue 4, 2129 - 2137

Abstract: Using SHIW microdata and ISTAT poverty thresholds, this study applies the Datt–Ravallion decomposition to evaluate how growth and redistribution shaped absolute poverty in Italy between 2014 and 2022. Growth substantially reduced poverty, but its impact was weakened by persistent inequality and significant regional asymmetries. Northern regions benefited most from growth-driven reductions, while the South and Islands depended more on redistribution. The analysis underscores that addressing structural disparities is essential for enhancing the poverty-reducing effect of growth and for designing effective, region-sensitive anti-poverty strategies.

Keywords: Poverty Reduction; Inequality; Redistribution; Absolute Poverty; Datt-Ravallion Decomposition (search for similar items in EconPapers)
JEL-codes: D3 (search for similar items in EconPapers)
Date: 2025-12-30
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