Institutional Quality and Income Inequality. Quantile Regression Analysis of Regional Italian Data
Cristian Barra and
Anna Papaccio
Journal of Regional Science, 2025, vol. 65, issue 4, 1216-1236
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.
Date: 2025
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https://doi.org/10.1111/jors.70000
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Persistent link: https://EconPapers.repec.org/RePEc:bla:jregsc:v:65:y:2025:i:4:p:1216-1236
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