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The impact of the crisis on unemployment and household income in Italy and Spain

Author

Listed:
  • Tindara Addabbo

    (University of Modena & Reggio Emilia)

  • Rosa García-Fernández

    (University of Granada)

  • Carmen Llorca-Rodríguez

    (University of Granada)

  • Anna Maccagnan

    (University of Modena & Reggio Emilia)

Abstract

This paper aims at evaluating the effect of the current economic crisis on household income and poverty in Spain and Italy. As data on 2009 income has not been released yet, we have carried out a microsimulation analysis using data drawn for the European Statistics on Income and Living Conditions Survey of 2007 and data of the Labour Force Survey of 2009. We propose a technique that is based on the imputation of transition probabilities into different labour market status as calculated on 2009 data on the data for 2007 and income simulation. Our results reveal a 3% reduction in equivalised household income in Spain and a 1.16% reduction in Italy. Despite this difference, for both countries the Gini Index increases from 0.31 to 0.32, suggesting that the Spanish unemployment protection system is more generous than the Italian one.

Suggested Citation

  • Tindara Addabbo & Rosa García-Fernández & Carmen Llorca-Rodríguez & Anna Maccagnan, 2011. "The impact of the crisis on unemployment and household income in Italy and Spain," Working Papers 235, ECINEQ, Society for the Study of Economic Inequality.
    • Handle: RePEc:inq:inqwps:ecineq2011-235
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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2011-235.pdf
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    References listed on IDEAS

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    Cited by:

    1. Marco Guerrazzi & Ilham Ksebi, 2019. "Measuring Unemployment by Means of Official Data and Administrative Records: Empirical and Theoretical Perspectives," QUADERNI DI ECONOMIA DEL LAVORO, FrancoAngeli Editore, vol. 2019(110), pages 17-49.

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    More about this item

    Keywords

    unemployment; crisis; simulation; poverty.;
    All these keywords.

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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