Information from the Survey of Italian Household Income and Wealth (SHIW) is not normally used as a basis for regional estimates on account of the small sample size. This paper presents an experimental estimation of regional aggregates for the period 1995-2000, obtained by combining several surveys. The variability of estimates is reduced not only by means of a wider sample but also through estimators that limit the impact of extreme values and merge survey data with external sources. The results confirm the traditional scenario: northern and central regions show greater average values for both income and wealth than their southern counterparts. Concentration of the two variables appears greater in the South, less in the North and even less in the Centre: therefore if measured with the Sen welfare index, which simultaneously considers average equivalent income and a distributional index, the gap between southern regions and northern and central ones grows even larger. The difference in the social and demographic composition of the population explains a significant share of the disparity in mean incomes between regions and helps to shed light on inequality within regions as well; the effects vary according to the region and the variable. However, these features appear to influence nation-wide inequality only to a moderate degree.
Published in 2002 in: Rivista economica del Mezzogiorno, v. 16, 4, pp. 809-847
