Inequality of income and poverty persistence in the Municipality of Bologna: a cross-sectional and longitudinal analysis through administrative data

Relatore: Marika Bazzocchi (Dipartimento di Scienze Statistiche, Università di Bologna)

  • Data: 18 febbraio 2021 dalle 16:00 alle 18:00

  • Luogo: Modalità telematica, mediante sistema di videoconferenza su piattaforma Microsoft Teams

This project is totally funded by the Emilia-Romagna Region as part of the "Three-year High Skills Plan for research, technology transfer and entrepreneurship" aimed at allowing people to acquire the skills necessary to carry out qualified research activities to support the innovation strategies of the regional economic and productive system. In particular, it is developed as part of an agreement between the Municipality of Bologna, the University of Bologna and the University of Modena and Reggio Emilia. The purpose is to analyse the medium term financial and distributional trends of income in the Municipality of Bologna in the period 2002-2017. In order to estimate income dynamics and poverty of households and individuals, a database containing administrative data is provided. This was achieved by linking data from the Register Office of the Municipality and fiscal data from the Ministry of Economy and Finance. In the first part, the methodology and the main estimates of income dynamics are described, including a widespread analysis of inequality of income distribution and of progressivity and redistributive effect of personal income taxes. In the second part, the longitudinal dimension of the dataset is considered to describe the extent and nature of persistent poverty. The definition of poverty is obtained through a one-dimensional approach, based on a single indicator (taxable income), and a local relative poverty threshold. Results that indicate the type of poverty experience are reported for all the population, together with breakdowns by subgroups. Finally, the analysis of the general pattern of exit from and returning into poverty by using non-parametric estimates of the exit and re-entry rates are also presented.

Christian Hennig, Silvia Cagnone