Claudio Quintano

STUDYING INEQUALITY IN INCOME DISTRIBUTION OF SINGLE‐PERSON HOUSEHOLDS IN FOUR DEVELOPED COUNTRIES

The increasing frequency of single-person households has become a major economic phenomenon, and is likely to become an important political force. This paper focuses on differences related to inequality of income distribution among single-person households in Europes four largest economies, i.e. France, Germany, Italy and the U.K. Income distribution was modeled in terms of individual characteristics using a parametric model with heterogeneous model parameters. Poverty differences were also broken down using the results of Biewen and Jenkins (2005) in order to understand the relationship between poverty and individual characteristics among countries.

Graduates in economics and educational mismatch: the case study of the University of Naples ‘Parthenope’ 1

The quality of jobs of economics graduates was studied in terms of educational mismatch. The returns of over‐education on earnings and on the job‐search were also investigated. The discussion regards the second wave of a longitudinal survey of a random sample of economics graduates from the University of Naples ‘Parthenope’, a major school of economics in southern Italy. Over‐education was measured using two different indicators of educational mismatch, one based on an objective parameter and the other on the same parameter combined with a subjective one. A probit regression with selection was carried out to analyse the influence of a set of control variables (such as family, background, employment geography and characteristics of job, work history, gender and channels used to enter the labour market) on over‐education. The same variables were used to study the returns of over‐education on earnings and on the job‐search. The probability of being over‐educated was significantly affected by gender, attainments in Higher Education (HE), channels used to enter the labour market, job location and job sector applied for. Females, lower HE achievers and graduates working in trade/sales or information systems sectors were more likely to be over‐educated than other subjects, whereas use of further education to enter the labour market decreased the probability of being over‐educated. Over‐educated workers were found to have a high probability of low earnings. Over‐education and low earnings induced workers to change jobs.

Evolution and decomposition of income inequality in Italy, 1991-2004

The aggregate measures of inequality do not display any significant trend in the concentration of equivalent income among the Italian households in the early 2000s. Yet some sizeable shifts in the income distribution seem to suggest that the relative positions of groups of households have changed on the income scale. Through a decomposition analysis of Gini index by income source we find that in the more recent years the income from self-employment is the main disequalizing factor. The decomposition by social groups provides the evidence that it is the group of self-employed and managers who have gained more ground on the income scale.

Some Alternative Estimates of Underground Economies in 12 New EU Member States

This paper investigates alternative estimates of the Non-Observed Economy (NOE) for 12 new European Union (EU) Member Countries during the transition period by an exploration of the reliability of the Gross Domestic Product (GDP) figures. The authors analyze several methodologies applied in various countries performing the Eurostat (2005) Pilot Projects on the Exhaustiveness (PPE); having in mind the different methods of measuring the shadow economy, the authors examine the relationship between selected economic aggregates to estimate the size and growth of the unrecorded sector using the Latent Variable Method to validate – as far as available – the official data, and to quantify the NOE phenomenon. The empirical results obtained by using this different estimation method do not reveal the same convergence as the national statistical offices have shown. These experiences include, to various degrees, the lack of coverage being dependent on the different types of underground economic activities.

A comparative analysis in the EU shadow economy using a DEA model

The idea of this study is to employ the data envelopment analysis (DEA) to assess the relative efficiency of 32 European countries in order to compare their performances while dealing with the shadow economy (SE). To statistically validate the model, the DEA refers to the results obtained by performing a structural equation model (SEM) partial least squares (PLS) approach. The authors adopt an input-minimisation orientation based on the assumption that, during the considered period, the policy interventions are able to focus strategically on the dimensions used to estimate the SEM-PLS model. The non-parametric frontier can be used to interpret the taxation and regulation differentials in the countries considered and the results can be interpreted in terms of encouraging the interventions when referring to the indicators proposed in the model.

Generational Determinants on the Employment Choice in Italy

Aim of the paper is to explore some crucial factors playing a significant role in employment decision-making in Italy. In particular, we aim at investigating the influence of family background on the choice to be self-employed rather than salaried; for this end, a series of regression models for categorical data is tested both on sampled workers, taken as a whole, and by gender separation. In this light, to test if the employment choice is context-dependent, environmental attributes are also modeled. In addition to a diversity of determinants, our results shed light on some differences between self-employed workers by first and second generation.

The shadow economy as a higher order construct inside European governance

Purpose - – Several dimensions of public governance occur while approaching the Shadow Economy (SE) phenomenon. The purpose of this paper is to study the SE by means of the European governance analysis by highlighting the main features of implications of the policy options. A statistical significance on the nexus between public governance and the SE appears with respect to the indicators taken into consideration except for the dimensions related to the tax system, which appear to be moderate in magnitude in terms of their effects. Design/methodology/approach - – In order to evaluate data from 32 European Union countries during 2011, a hierarchical component model (HCM) in the context of the structural equation model (SEM) partial least squares (PLS) is utilised. Two different procedures are considered: a two-stage approach (TSA) and the repeated indicators approach (RIA). Findings - – The two procedures (RIA and TSA) proposed in the model have about the same impact on the SE. Evidence suggests that the manifest variables joined to the regulatory system, business regulation and wealth level significantly affect the SE. In contrast, different dimensions connected to the tax system need to be considered to avoid that there be no significant effects on the SE from taxes. Research limitations/implications - – A critical evaluation of the policy implications of the results are included, by focusing on the effects on the SE. Practical implications - – This paper suggests where more emphasis should be placed when referring to the statistical results in dealing with the SE. Originality/value - – To the authors’ knowledge, this is the first attempt to explore the SE while using an HCM (also known as higher order model) performed in a SEM-PLS procedure. The model proposed discerns the relevance and the marginal impact of several dimensions of policy interventions.

The Effects of Socioeconomic Background and Test-taking Motivation on Italian Students’ Achievement

The aim of this work is to analyze the educational outcomes of Italian students and to explain the differences across Italian macro regions. In addition to the “classic” determinants of student achievement (e.g. family socioeconomic background) we investigated the extent to which the test-taking motivation may contribute to influence the results from assessment test and to explain, partially, the Italian territorial disparities. Therefore, a two stage approach is provided. Firstly, the data envelopment analysis (DEA) is applied to obtain a synthetic measure of the test-taking motivation. Secondly, a multilevel regression model is employed to investigate the effect of this measure of test-taking motivation on student performance after controlling for school and student factors.

Measuring poverty and living conditions in Italy through a combined analysis at a sub-national level 1

Aim of this paper is to explore poverty patterns and differentials across Italian provinces for several objective dimensions of life-style deprivation according to a multidimensional and fuzzy approach. We propose a joint analysis of monetary and supplementary deprivation to point out the extent to which the two aspects of poverty overlap for the population concerned, to look into their potential background determinants and to sketch a territorial poverty profile. Since traditional direct estimators, based on ECHP data, cannot provide adequate precision due to smallness of domain-specific sub-sample, we test Rao-Yu models, as extension of Fay-Herriot estimator, to handle time-series data. In addition to a diversity of deficiencies found throughout Italy, empirical evidence clearly emphasize higher degrees of overlap in “poorer” southern provinces and lower degrees in “richer” northern ones, justifying the implementation of different approaches to poverty measurement to identify those areas which, more than others, need structural interventions.

The determinants of Italian NEETs and the effects of the economic crisis

In recent years, the share of young people not in education, employment, or training (NEETs) has shown a remarkable increase in many European countries, such as Italy. The wide diffusion of NEETs represents an alarming social issue, as being NEET predisposes young people to long-term unemployment and social exclusion. It also has a significant negative impact on the economic growth and welfare equilibrium of countries. The aim of this paper is to analyze the determinants of the NEET condition in Italy through a step by step procedure beginning with the identification of their main characteristics and then proceeding with a focus on specific homogeneous clusters of NEETs. The decomposition of the gaps in the probabilities of being NEET between the various clusters allows verifying how personal characteristics effectively act. Furthermore, the influence of unobserved factors in the professional condition of young people has been analysed in more detail through a bivariate selection probit model on the propensity to look for a job against the condition of being inactive. The results confirm the crucial role of the education system, as well as the importance of the economic and social disparities between gender and the Italian territorial districts.