Decomposing the role of great recession on income polarization by population groups

Abstract

In this paper two different non-parametric methods are applied to disentangle the role of Great Recession on income polarization in Italy by population groups (gender, occupational status, education, age, residential area and state of birth). Results show a general downgrading, particularly of lower incomes, where low-educated, young, southern and foreign head of household are located out of the crisis. Young people and especially foreigners have suffered the most from the crisis. Thus, the decomposition of the polarization indices by population groups is able to provide specific useful policy indications, tailored to groups’ needs.