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The Origins of the Italian Regional Divide: Evidence from Real Wages, 1861-1913

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  • Giovanni Federico
  • Alessandro Nuvolari
  • Michelangelo Vasta

Abstract

The historical origins of the long lasting Italian North-South divide have always been controversial, but the scholarly debate has been hampered by the dearth of actual data on the size of the gap and its historical evolution. In this paper, we fill this gap by estimating a new provincial data-set of welfare ratios (Allen 2001) from the Unification of Italy in 1861 to World War One. Italy as a whole was very poor throughout the period, with a rather modest improvement since the late 19th century. This improvement had started in the North-West regions, the cradle of Italian industrialization, in the 1880s, while real wages in other macro-areas (North-East, Centre, South and islands) remained stagnant until the early 20th century, rising sizably only in the pre-war years. The gap between North-West and the South, already substantial in 1861 widened until the very end of the period. The Continental South was poorer than the North East, but not always of the Centre, while real wages in the Islands (i.e. Sicily) were close to national average.

Suggested Citation

  • Giovanni Federico & Alessandro Nuvolari & Michelangelo Vasta, 2017. "The Origins of the Italian Regional Divide: Evidence from Real Wages, 1861-1913," Department of Economics University of Siena 748, Department of Economics, University of Siena.
    • Handle: RePEc:usi:wpaper:748
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    References listed on IDEAS

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    1. Allen, Robert C., 2001. "The Great Divergence in European Wages and Prices from the Middle Ages to the First World War," Explorations in Economic History, Elsevier, vol. 38(4), pages 411-447, October.
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    Cited by:

    1. Roberto Iacono & Marco Ranaldi, 2023. "The Evolution of Income Composition Inequality in Italy, 1989–2016," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 69(1), pages 124-149, March.
    2. Carlo Ciccarelli & Jacob Weisdorf, 2019. "Pioneering into the past: Regional literacy developments in Italy before Italy," European Review of Economic History, European Historical Economics Society, vol. 23(3), pages 329-364.
    3. Giacomo Gabbuti, 2018. "Labour Shares and Income Inequality: Insights from Italian Economic History, 1895-2015," HHB Working Papers Series 13, The Historical Household Budgets Project.
    4. Rowena Gray & Gaia Narciso & Gaspare Tortorici, 2017. "Globalization, Agricultural Markets and Mass Migration," RF Berlin - CReAM Discussion Paper Series 1713, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    5. Bucciol, Alessandro & Camboni, Riccardo & Valbonesi, Paola, 2020. "Purchasing medical devices: The role of buyer competence and discretion," Journal of Health Economics, Elsevier, vol. 74(C).

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    More about this item

    JEL classification:

    • N33 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: Pre-1913
    • N01 - Economic History - - General - - - Development of the Discipline: Historiographical; Sources and Methods
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913

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