The aim of the paper is to provide a methodology for obtaining timely and geographically disaggregated indicators for equivalised labour income inequality using data from the Italian Labour Force Survey (ILFS). Labour income accounts for around 80 per cent of disposable income for "active" households, those in which the head is between 15-64 years of age and in which there are no retirees. These households represent about 70 per cent of the total population and almost all underage population.
The proposed indicators are not meant to substitute standard measures that are calculated on the basis of total income, but to complement them by providing information on how labour income inequality follows labour market dynamics. Equivalised labour income inequality as measured in the ILFS significantly increased between 2009 and 2014, then fell slightly until 2018. This pattern was mainly driven by the observed changes in the share of individuals living in households with no employed individuals.
Published in 2020 in: Social Indicators Research, v. 149, 1. pp. 41-65
