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Regional Inequality In Outputs, Incomes And Employment In Italy And The Usa: Comparative Assessment (Abstract only)

Bevilacqua, Carmelina
Schachter, Gustav
Sum, Andrew
Fogg, Neeta
Year of Publication: 
Series/Report no.: 
40th Congress of the European Regional Science Association: "European Monetary Union and Regional Policy", August 29 - September 1, 2000, Barcelona, Spain
This study provides an analysis of trends in regional inequality in various output, income, and employment/unemployment measures in Italy and the United States over the past two decades, with appropriate comparisons of the degree of regional inequality in the two countries. Findings are presented for 20 Italian regions, 9 U.S. regions, and the 50 U.S. states. The measured degree of regional inequality in Italy is found to vary considerably across the alternative economic measures. Inequality in per capita real outputs across the Italian regions is found to be considerably higher than inequality in regional labor productivity or household incomes. Large regional differences in employment and unemployment rates underlie the higher degree of inequality found in Italian regional per capita outputs. Over the past two decades, there is no evidence of regional convergence in per capita outputs of Italy; however, there has been a modest trend in convergence in real output per worker across the Italian regions. In the United States, regional variations in real output per capita ac'!oss the nine regions (as measured by the coefficient of variation) are considerably smaller than in Italy, and there are few important differences in regional output per capita and per worker in the U.S. The degree of inequality for both measures is quite similar. Labor force participation rates, employment/population ratios, and unemployment rate differences across regions and states in the U.S. are much smaller than they are in Italy. The primary source of the remaining differences in regional and state per capita output is labor productivity rather than employment or unemployment. While per capita real outputs and incomes diverged in the U.S. in the 1980s, the 1990s have seen a restoration of the long term historical trend toward convergence across regions and states. Implications of the findings for future regional development policy in the two countries are briefly discussed.
Document Type: 
Conference Paper

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