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The Origins Of The Italian Regional Divide: Evidence From Real Wages, 1861-1913

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  • Federico, Giovanni
  • Vasta, Michelangelo
  • Nuvolari, Alessandro

Abstract

The origins of the Italian North-South divide have always been controversial. We fill this gap by estimating a new data-set of real wages (Allen 2001) from the Unification (1861) to WWI. Italy was very poor throughout the period, with a modest improvement since the late 19th century. This improvement started in the North-West industrializing regions, while real wages in other macro-areas remained stagnant. The gap North-West/South widened until the end of the period. Focusing on the drivers of the different regional trends, we find that human capital formation exerted strong positive effect on the growth of real wages.

Suggested Citation

  • Federico, Giovanni & Vasta, Michelangelo & Nuvolari, Alessandro, 2017. "The Origins Of The Italian Regional Divide: Evidence From Real Wages, 1861-1913," CEPR Discussion Papers 12358, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:12358
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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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    More about this item

    Keywords

    Italy; Regional divide; Real wages; 19th century;
    All these keywords.

    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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