Wars, depression, and fascism: income inequality in Italy, 1900-1950

Abstract

This paper documents new yearly estimates of income inequality in Italy from 1900 to 1950. By constructing dynamic social tables, we obtain the first comprehensive assessment of all major components of Italian society, as well as to consistent comparable inequality estimates to those available for Britain, Germany and Spain. In line with other European countries, Italy shows short-term inequality changes during this period. We identify a steep decline in inequality in Italy (especially within-labour) after WWI, followed by a reversal between 1922 and 1931, a relative stability, and a further increase during WWII, this time driven by capital income.