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Trends in Income Distribution in Italy: A Non-Parametric 90 and a Semi-Parametric Analysis

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  • Maria Grazia Pittau

    (University of Rome "La Sapienza")

  • Roberto Zelli

    (University of Rome "La Sapienza")

Abstract

Using kernel density estimation and mixture models, household size-adjusted income distributions in Italy are cross-sectionally examined over the period 1987-2002. A non-parametric test is used to assess the number of modes in the distributions. Evidence shows that income tends to cluster around more than one point. This gives good reason to model the shapes by a finite mixture density with an appropriate choice of components which represent homogeneous sub-populations. Effects of social and demographic factors on the probability of households to belong to one of the components of the mixture are identified by a compositional data analysis.

Suggested Citation

  • Maria Grazia Pittau & Roberto Zelli, 2006. "Trends in Income Distribution in Italy: A Non-Parametric 90 and a Semi-Parametric Analysis," Journal of Income Distribution, Ad libros publications inc., vol. 15(3-4), pages 90-118, December.
    • Handle: RePEc:jid:journl:y:2006:v:15:i:3-4:p:90-118
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    Cited by:

    1. Andrea Brandolini & Romina Gambacorta & Alfonso Rosolia, 2018. "Inequality amid income stagnation: Italy over the last quarter of a century," Questioni di Economia e Finanza (Occasional Papers) 442, Bank of Italy, Economic Research and International Relations Area.
    2. Schettino, Francesco & Gabriele, Alberto & Khan, Haider A., 2021. "Polarization and the middle class in China: A non-parametric evaluation using CHNS and CHIP data," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 251-264.
    3. Paul Johnson & Chris Papageorgiou, 2020. "What Remains of Cross-Country Convergence?," Journal of Economic Literature, American Economic Association, vol. 58(1), pages 129-175, March.
    4. Riccardo Massari & Maria Pittau & Roberto Zelli, 2009. "A dwindling middle class? Italian evidence in the 2000s," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 7(4), pages 333-350, December.
    5. Fabio Clementi & Francesco Schettino, 2013. "Income polarization in Brazil, 2001-2011: A distributional analysis using PNAD data," Economics Bulletin, AccessEcon, vol. 33(3), pages 1796-1815.
    6. Khan, Haider & Schettino, Francesco, 2018. "Income Polarization in the USA (1983-2016): what happened to the middle class?," MPRA Paper 85554, University Library of Munich, Germany.

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