A New Geography of Inequality: Top incomes in Italian Regions and Inner Areas (WORKING PAPER UNDER REVIEW)

This study presents updated estimates of top fiscal income concentration measures in Italy at various levels of disaggregation, highlighting significant differences in income growth and com- position among different percentiles and macro-regions. The findings reveal that individuals at the top of the income distribution gain the most during periods of income growth, while the bottom 90% experience the most significant losses during economic downturns. Surprisingly, the study also shows that the more peripheral areas are not necessarily those with the highest income concentration. Moreover, due to the Covid-19 pandemic, all macro-regions registered the highest level of income concentration in 2020, indicating that the pandemic has widened the gap between the top earners and the rest of the population. By providing a more nuanced understanding of income concentration measures at various levels of disaggregation, this study can inform the development of evidence-based policies aimed at reducing inequality.