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Winners and Losers in the Italian Welfare State: A Microsimulation Analysis of Income Redistribution Considering In-Kind Transfers

Author

Listed:
  • Daniela Sonedda

    (SEMEQ, Università del Piemonte Orientale)

  • Gilberto Turati

    (University of Torino)

Abstract

In this paper we consider income distribution in Italy, and evaluate the redistributive impact of in-kind transfers by using SHIW data provided by the Banca d’Italia. The analysis is conducted at the household level, comparing families with different needs by means of equivalence scales. We consider both cash and noncash income transfers, looking in particular at health services and educational services. Our results show that -in a given year -redistribution in Italy (as in other industrialised countries) is operated mainly through cash transfers, while the redistributive power of in-kind transfers appears to be limited, and their impact on income distribution less than that obtained with direct taxation. Recent pensions reforms will probably reduce cash transfers, and call for new ways of redistributing income.

Suggested Citation

  • Daniela Sonedda & Gilberto Turati, 2005. "Winners and Losers in the Italian Welfare State: A Microsimulation Analysis of Income Redistribution Considering In-Kind Transfers," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 64(4), pages 423-464, December.
    • Handle: RePEc:gde:journl:gde_v64_n4_p423-464
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    References listed on IDEAS

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    Cited by:

    1. Laura Bianchini & Santino Piazza & Alberto Cassone, 2017. "The distributional impact of health public expenditure in Italian regions: what happens when cost-effectiveness and quality matter?," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 34(3), pages 445-469, December.
    2. Fabio Padovano & Francesco Scervini & Gilberto Turati, 2021. "Comparing governments’ efficiency at supplying income redistribution," Constitutional Political Economy, Springer, vol. 32(1), pages 68-97, March.
    3. Fabio Padovano & Gilberto Turati, 2012. "Redistribution through a "Leaky Bucket". What explains the Leakages?," Economics Working Paper from Condorcet Center for political Economy at CREM-CNRS 2012-03-ccr, Condorcet Center for political Economy.
    4. Fabio Padovano & Francesco Scervini & Gilberto Turati, 2016. "How do Governments Fare about Redistribution? New Evidence on the Political Economy of Redistribution," CESifo Working Paper Series 6137, CESifo.
    5. repec:tur:wpaper:8 is not listed on IDEAS
    6. Francesco Scervini, 2009. "Political Economy of Director's Law: How Sincere Voters Decide on Cash and In-kind Redistribution in a Costly Political Framework," Working papers 08, Former Department of Economics and Public Finance "G. Prato", University of Torino.

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    More about this item

    Keywords

    in-kind transfers; income redistribution;

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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