THE ORIGINS OF THE ITALIAN REGIONAL DIVIDE: EVIDENCE FROM REAL WAGES, 1861-1913

Giovanni Federico, Michelangelo Vasta and Alessandro Nuvolari

No 12358, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: The origins of the Italian North-South divide have always been controversial. We fill this gap by estimating a new data-set of real wages (Allen 2001) from the Unification (1861) to WWI. Italy was very poor throughout the period, with a modest improvement since the late 19th century. This improvement started in the North-West industrializing regions, while real wages in other macro-areas remained stagnant. The gap North-West/South widened until the end of the period. Focusing on the drivers of the different regional trends, we find that human capital formation exerted strong positive effect on the growth of real wages.

Keywords: Italy; Regional divide; Real wages; 19th century (search for similar items in EconPapers)
JEL-codes: N01 N13 N33 (search for similar items in EconPapers)
Date: 2017-10
New Economics Papers: this item is included in nep-gro, nep-his and nep-hrm
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: The Origins of the Italian Regional Divide: Evidence from Real Wages, 1861–1913 (2019)
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