New perspectives on old inequalities: Italy’s north–south divide

Abstract

ABSTRACT Italy’s regional inequalities are more substantial and persistent than any other European country. They pertain to fundamental economic indicators (income, productivity, employment) and to many relevant features of the socio-institutional environment (the quality of institutions, education attainments, government and bureaucratic efficiency, etc.). The 2008–13 crisis further exacerbated divergences, with a collapse of capital accumulation and unwelcome demographic shocks (brain drains, migrations, etc.). This paper contributes to this rich literature with a specific focus on the increase of ‘within-south inequalities’ and investigates some socioeconomic determinants and processes that can explain them. Through several original surveys and case studies, emphasis falls on the importance of human capital and cooperative networks that support firms in their capacity to exploit comparative advantages and opportunities for local development.