United but Unequal: Inheritances and Wealth Concentration in Italy from Unification to the Great War (WORKING PAPER UNDER REVIEW)

The work produces the first historical estimates of wealth concentration for Italy, from its unification to the outbreak of the Great War. The paper also shows a disaggregation at the region (16) and province (69) level, together with an estimate of the flow of inheritances over GDP for the same period, and refined wealth-to-income ratios from 1861 to present. Our estimates of concentration, based on a combination of nationally representative tabulations and detailed micro-evidence on estates for the cities of Milan and Naples, point towards high and constant levels of inequality, in contrast with existing evidence on declining income inequality. Within Italy, concentration varied a lot, but did not follow a classic North-South divide as generally highlighted in existing research. Indeed, a provincial-level analysis reveals non clear correlation between aggregate wealth, its composition, and its concentration. In a long-run perspective, the level of concentration registered in Liberal Italy and its regions were in line with the highest ever recorded since 1400. Inheritance and wealth were in late 19th century Italy at the high levels of today, but their role was declining since the end of the century. Overall, this paper lays the basis for a very long run view on wealth accumulation, wealth concentration, and inheritance in Italy.