IDEAS home Printed from https://ideas.repec.org/a/spr/soinre/v161y2022i2d10.1007_s11205-020-02440-6.html
   My bibliography  Save this article

An Iterative Approach to Stratification: Poverty at Regional Level in Italy

Author

Listed:
  • Francesca Mariani

    (Università Politecnica delle Marche)

  • Mariateresa Ciommi

    (Università Politecnica delle Marche)

  • Francesco M. Chelli

    (Università Politecnica delle Marche)

  • Maria Cristina Recchioni

    (Università Politecnica delle Marche)

Abstract

We develop an iterative procedure to generate stratification in non-overlapping classes of a population based on a one-dimensional variable, namely, the Italian income. The procedure works under the assumption that the income distribution is generated by a log-normal mixture of homogeneous income groups. The number of income groups is not determined a priori but rather endogenously by the iterative procedure that stops when the solution to a specific second-degree polynomial equation does not exist. We apply the approach to study the heterogeneity of Italian incomes and the poor population at regional level in the years 2005, 2010, and 2015. The cross-regional comparisons show differences in inequality and stratification dynamics while comparisons over time show the evolution of the classes.

Suggested Citation

  • Francesca Mariani & Mariateresa Ciommi & Francesco M. Chelli & Maria Cristina Recchioni, 2022. "An Iterative Approach to Stratification: Poverty at Regional Level in Italy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 161(2), pages 873-903, June.
    • Handle: RePEc:spr:soinre:v:161:y:2022:i:2:d:10.1007_s11205-020-02440-6
    DOI: 10.1007/s11205-020-02440-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11205-020-02440-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11205-020-02440-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Paola Profeta, 2007. "Political support and tax reforms with an application to Italy," Public Choice, Springer, vol. 131(1), pages 141-155, April.
    2. VAN KERM Philippe, 2007. "Extreme incomes and the estimation of poverty and inequality indicators from EU-SILC," IRISS Working Paper Series 2007-01, IRISS at CEPS/INSTEAD.
    3. Foster, James E, 1998. "Absolute versus Relative Poverty," American Economic Review, American Economic Association, vol. 88(2), pages 335-341, May.
    4. Eisenhauer, Joseph G., 2011. "The rich, the poor, and the middle class: Thresholds and intensity indices," Research in Economics, Elsevier, vol. 65(4), pages 294-304, December.
    5. D. Jayaraj & S. Subramanian, 2006. "Horizontal and Vertical Inequality: Some Interconnections and Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 75(1), pages 123-139, January.
    6. Gordon Anderson & Maria Pittau & Roberto Zelli, 2014. "Poverty status probability: a new approach to measuring poverty and the progress of the poor," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(4), pages 469-488, December.
    7. Schotte, Simone & Zizzamia, Rocco & Leibbrandt, Murray, 2018. "A poverty dynamics approach to social stratification: The South African case," World Development, Elsevier, vol. 110(C), pages 88-103.
    8. Persson, Torsten & Tabellini, Guido, 1994. "Is Inequality Harmful for Growth?," American Economic Review, American Economic Association, vol. 84(3), pages 600-621, June.
    9. Steven Pressman, 2007. "The Decline of the Middle Class: An International Perspective," Journal of Economic Issues, Taylor & Francis Journals, vol. 41(1), pages 181-200, March.
    10. Karen E. Dynan & Jonathan Skinner & Stephen P. Zeldes, 2004. "Do the Rich Save More?," Journal of Political Economy, University of Chicago Press, vol. 112(2), pages 397-444, April.
    11. Shlomo Yitzhaki & Robert I. Lerman, 1991. "Income Stratification And Income Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(3), pages 313-329, September.
    12. Andreas Peichl & Thilo Schaefer & Christoph Scheicher, 2010. "Measuring Richness And Poverty: A Micro Data Application To Europe And Germany," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(3), pages 597-619, September.
    13. Roberto Perotti, 1993. "Political Equilibrium, Income Distribution, and Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(4), pages 755-776.
    14. Paul D. McNicholas, 2016. "Model-Based Clustering," Journal of Classification, Springer;The Classification Society, vol. 33(3), pages 331-373, October.
    15. Luis López-Calva & Eduardo Ortiz-Juarez, 2014. "A vulnerability approach to the definition of the middle class," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(1), pages 23-47, March.
    16. Vasiliy A. Anikin & Yulia P. Lezhnina & Svetlana V. Mareeva & Ekaterina D. Slobodenyuk & Nataliya N. Tikhonovà, 2016. "Income Stratification: Key Approaches and Their Application to Russia," HSE Working papers WP BRP 02/PSP/2016, National Research University Higher School of Economics.
    17. Miguel Niño‐Zarazúa & Laurence Roope & Finn Tarp, 2017. "Global Inequality: Relatively Lower, Absolutely Higher," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(4), pages 661-684, December.
    18. Bellettini, Giorgio & Berti Ceroni, Carlotta, 2007. "Income distribution, borrowing constraints and redistributive policies," European Economic Review, Elsevier, vol. 51(3), pages 625-645, April.
    19. Marcelo Medeiros, 2006. "Poverty, inequality and redistribution: A methodology to define the rich," Working Papers 18, International Policy Centre for Inclusive Growth.
    20. Dagum, Camilo, 1997. "A New Approach to the Decomposition of the Gini Income Inequality Ratio," Empirical Economics, Springer, vol. 22(4), pages 515-531.
    21. Maria Grazia Pittau & Roberto Zelli & Paul A. Johnson, 2010. "Mixture Models, Convergence Clubs, And Polarization," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(1), pages 102-122, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eisenhauer, Joseph G., 2011. "The rich, the poor, and the middle class: Thresholds and intensity indices," Research in Economics, Elsevier, vol. 65(4), pages 294-304, December.
    2. Vasiliy A. Anikin & Yulia P. Lezhnina & Svetlana V. Mareeva & Ekaterina D. Slobodenyuk & Nataliya N. Tikhonovà, 2016. "Income Stratification: Key Approaches and Their Application to Russia," HSE Working papers WP BRP 02/PSP/2016, National Research University Higher School of Economics.
    3. Ekaterina D. Slobodenyuk & Svetlana V. Mareeva, 2020. "Relative Poverty in Russia: Evidence from Different Thresholds," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 151(1), pages 135-153, August.
    4. Grossmann, Volker, 2008. "Risky human capital investment, income distribution, and macroeconomic dynamics," Journal of Macroeconomics, Elsevier, vol. 30(1), pages 19-42, March.
    5. Stéphane Mussard & Michel Terraza, 2009. "Décompositions des mesures d'inégalité : le cas des coefficients de Gini et d'entropie," Recherches économiques de Louvain, De Boeck Université, vol. 75(2), pages 151-181.
    6. Mariam Shahzadi & Muhammad Faraz Riaz & Sofia Anwar & Samia Nasreen, 2017. "How unequal is the size of middle class in the rural urban areas of Punjab province," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 44(2), pages 253-266, February.
    7. Christophe Hachon, 2009. "A Dynamic Explanation of the Crisis of the Welfare State," Working Papers halshs-00371205, HAL.
    8. Gonzalez-Eiras, Martín & Niepelt, Dirk, 2012. "Ageing, government budgets, retirement, and growth," European Economic Review, Elsevier, vol. 56(1), pages 97-115.
    9. Stéphane Mussard & Kuan Xu, 2006. "Multidimensional Decomposition of the Sen Index: Some Further Thoughts," Cahiers de recherche 06-08, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    10. Shinhye Chang & Rangan Gupta & Stephen M. Miller, 2018. "Causality Between Per Capita Real GDP and Income Inequality in the U.S.: Evidence from a Wavelet Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 135(1), pages 269-289, January.
    11. Charles Condevaux & Stéphane Mussard & Téa Ouraga & Guillaume Zambrano, 2020. "Generalized Gini linear and quadratic discriminant analyses," METRON, Springer;Sapienza Università di Roma, vol. 78(2), pages 219-236, August.
    12. Arjan Lejour & Harrie Verbon, 1997. "Tax Competition and Redistribution in a Two-Country Endogenous-Growth Model," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 4(4), pages 485-497, November.
    13. Branko Milanovic, 2003. "The median voter hypothesis, income inequality and income," HEW 0305001, University Library of Munich, Germany.
    14. Mark Gradstein & Branko Milanovic, 2004. "Does Libertè = Egalité? A Survey of the Empirical Links between Democracy and Inequality with Some Evidence on the Transition Economies," Journal of Economic Surveys, Wiley Blackwell, vol. 18(4), pages 515-537, September.
    15. Giorgio Bellettini & Carlotta Berti Ceroni, 1999. "Is Social Security Really Bad for Growth?," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 2(4), pages 796-819, October.
    16. Patrizio Pagano, 2004. "An empirical investigation of the relationship between inequality and growth," Temi di discussione (Economic working papers) 536, Bank of Italy, Economic Research and International Relations Area.
    17. Masato Okamoto, 2009. "Decomposition of gini and multivariate gini indices," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 7(2), pages 153-177, June.
    18. Cecilia Garcia-Penalosa & Eve Caroli & Philippe Aghion, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1615-1660, December.
    19. Micael Castanheira & Gaëtan Nicodème & Paola Profeta, 2012. "On the political economics of tax reforms: survey and empirical assessment," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(4), pages 598-624, August.
    20. Julio Huato, 2023. "Inequality and Growth: A Two-Player Dynamic Game with Production and Appropriation," Papers 2304.01855, arXiv.org.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:soinre:v:161:y:2022:i:2:d:10.1007_s11205-020-02440-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.