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Michele Fabiani
 
''Bridging the Divide: Growth, Inequality, and Poverty Dynamics in Italy''
( 2025, Vol. 0 No.0 )
 
 
Using SHIW microdata and ISTAT poverty thresholds, this study applies the Datt–Ravallion decomposition to evaluate how growth and redistribution shaped absolute poverty in Italy between 2014 and 2022. Growth substantially reduced poverty, but its impact was weakened by persistent inequality and significant regional asymmetries. Northern regions benefited most from growth-driven reductions, while the South and Islands depended more on redistribution. The analysis underscores that addressing structural disparities is essential for enhancing the poverty-reducing effect of growth and for designing effective, region-sensitive anti-poverty strategies.
 
 
Keywords: Poverty Reduction; Inequality; Redistribution; Absolute Poverty; Datt-Ravallion Decomposition
JEL: D3 - Distribution: General
 
Description of Appendix:

The supplemental material consists of the Appendix to the paper, reporting robustness checks, panel regressions, and bootstrap confidence intervals for the growth, redistribution, and residual components.
EB-25-00596-Appendix.pdf
 
 
Manuscript Received : Nov 24 2025 Manuscript Accepted : Dec 09 2025

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