Disparities among regions are high across many well-being dimensions in Italy
Regional disparities follow the north-south divide
Deprivation rates in Italy’s poorest regions are among the highest among EU OECD members
Regional disparities in GDP per capita are large and persistent
Dispersion among regions in well-being is wider than for income alone
Differences in employment rates across regions are high in Italy, especially among women
In Italy, differences in employment rates among regions explain more of the regional differences in income
Average wages in southern regions are around the bottom third of the national wage distribution
Informal work is more common in low-income regions
Poverty is more common in Italy’s South, particularly among families with children
A high and rising share of Italian workers is at risk of poverty
Inequality and poverty are comparatively high
Members of couples and especially women are less likely to work in Italy than in other European countries
Employment rates vary greatly with education levels and across regions
Italy’s employer social security contributions and on personal income tax revenues are higher than most OECD countries, and create a wide labour income tax wedge
Italy’s statutory marginal tax rates are higher than most OECD countries
Taxes and benefits support low income couples and households with children
Effective marginal tax rates are high at low wages, which are more common in lagging regions
Italy’s high spending on pensions reduces space for other social protection programmes
A small share of transfers benefits Italy’s poorest households
Poorer regions have lower social spending and less capacity
Italy’s REI provided relatively modest transfers, while the Citizen’s Income is relatively generous for smaller households
Many low-income households live in housing rented at market rates
The Citizen’s Income benefits poorer households, flatter tax rates benefit higher incomes, while a comprehensive reform would support low and middle income households
The proposed Citizen’s Income raises many poor households’ incomes but lowers incentives to work, while a guaranteed minimum income with in-work benefits would strengthen incentives
The Citizen’s Income leads to high participation tax rates at low incomes
Targeted income support is likely to particularly benefit residents of southern regions
Living costs are lower for low-income households in southern and rural areas
Households headed by the unemployed, sick or disabled and students particularly benefit from guaranteed minimum income policies
By encouraging employment, the recommended reform package would lift activity
Italy’s public employment services help few jobseekers find work: Involvement of the PES in finding current job, % of employees aged 25-64 who started a job during the previous 12 months, 2014
Participation in adult learning still lags other OECD countries
Adult participation in education and training tend to be low in southern regions
Non-standard employment rates are high in Italy, especially in lagging regions
Childcare places are scarce in regions that are poorer and where fewer women work
Incomes in southern regions converged with the rest of Italy only in the 1950s and 1960s
Italy’s absorption of EU funds is low
Southern regions lag in commitments and payments of EU funds
Higher efficiency of municipalities is associated with higher productivity: Average administrative efficiency index, 2015
Metropolitan areas and labour productivity in Europe
Densities of metropolitan areas
Administration of Italy’s metropolitan areas is somewhat fragmented
Responsibilities of regional governments are large in some areas