Tendencies in income distribution and the crisis of the middle-class in
Italy: perception or reality?
The aim of the paper is to assess distributional changes occurred
in Italy in the last thirty years, focusing in particular on the last
decade. Computations are based on Bank of Italy’s Survey of
Households Income and Wealth and are aimed at drawing a consistent
picture of the major distributional episodes around three main
issues: income inequality, poverty and mobility. Although most of
synthetic indices show limited changes along the last decade, the use
of alternative non-static tools such as transition matrices reveal a
significant downward mobility for the middle and the upper-middle
quantiles, which is also associated to a higher persistence for the
bottom part of the distribution. These findings suggests that, in
absence of a «risk premium» due to poor growth performances, the
greater uncertainty and the risk-shift caused by recent reforms being
extremely relevant in explaining the puzzle between the empirical
evidence of stability in distributional indices and the feeling of
impoverishment experienced by Italian households.