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The Effect of the 1918 Influenza Pandemic on Income Inequality: Evidence from Italy

Author

Listed:
  • Sergio Galletta

    (University of Bergamo)

  • Tommaso Giommoni

    (ETH Zürich)

Abstract

We estimate the effect of the 1918 influenza pandemic on income inequality in Italian municipalities. Our identification strategy exploits the exogenous diffusion of influenza across municipalities due to the presence of infected soldiers on leave from World War I operations. The measures of income inequality come from newly digitized historical administrative records on taxpayer incomes. We show that in the short and medium run, income inequality is higher in municipalities more afflicted by the pandemic. The effect is mostly explained by an increase in the share of income held by the rich to the detriment of the other strata of the population.

Suggested Citation

  • Sergio Galletta & Tommaso Giommoni, 2022. "The Effect of the 1918 Influenza Pandemic on Income Inequality: Evidence from Italy," The Review of Economics and Statistics, MIT Press, vol. 104(1), pages 187-203, March.
    • Handle: RePEc:tpr:restat:v:104:y:2022:i:1:p:187-203
    DOI: 10.1162/rest_a_01075
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    Cited by:

    1. Brzezinski, Michal, 2021. "The impact of past pandemics on economic and gender inequalities," Economics & Human Biology, Elsevier, vol. 43(C).
    2. James Bootsma & Thomas J. Carter & Xin Scott Chen & Christopher Hajzler & Argyn Toktamyssov, 2020. "2020 US Neutral Rate Assessment," Discussion Papers 2020-12, Bank of Canada.
    3. Peña Blasco, Guillermo, 2021. "The coronavirus: Black swan and endowment shock," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 30(1), pages 1-14.
    4. Aloysius Gunadi Brata & Eusebius Pantja Pramudya & Esther Sri Astuti & Heffi Christya Rahayu & Heronimus Heron, 2021. "COVID-19 and Socio-Economic Inequalities in Indonesia: A Subnational-level Analysis," Working Papers DP-2021-04, Economic Research Institute for ASEAN and East Asia (ERIA).
    5. Guido Alfani, 2022. "Epidemics, Inequality, and Poverty in Preindustrial and Early Industrial Times," Journal of Economic Literature, American Economic Association, vol. 60(1), pages 3-40, March.
    6. Théophile T Azomahou & Njuguna Ndung'U & Mahamady Ouedraogo, 2021. "Coping with a dual shock : the economic effects of COVID-19 and oil price crises on African economies," Post-Print hal-03344118, HAL.

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