The origins of the Italian North-South divide have always been controversial. We fill this gap by estimating a new dataset of real wages (Allen 2001; Allen et al. 2011) from Unification (1861) to WWI. Italy was very poor throughout the period, with a modest improvement since the late nineteenth century. This improvement started in the Northwest industrializing regions, while real wages in other macro-areas remained stagnant. The gap Northwest/South widened until the end of the period. Focusing on the drivers of regional trends, we find that human capital formation exerted strong positive effect on the growth of real wages.
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Indiana Univ, Kelley Sch Business, Accounting Dept, Bloomington, IN 47405 USAIndiana Univ, Kelley Sch Business, Accounting Dept, Bloomington, IN 47405 USA
Golshan, Nargess M.
Khurana, Inder K.
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Univ Missouri, Robert J Trulaske Sr Coll Business, Sch Accountancy, Columbia, MO USAIndiana Univ, Kelley Sch Business, Accounting Dept, Bloomington, IN 47405 USA
Khurana, Inder K.
Silva, Felipe B. G.
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Univ Missouri, Robert J Trulaske Sr Coll Business, Sch Accountancy, Columbia, MO USAIndiana Univ, Kelley Sch Business, Accounting Dept, Bloomington, IN 47405 USA
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Univ Naples LOrientale, Dept Social & Human Sci, Lgo San Giovanni Maggiore 34, I-80134 Naples, ItalyUniv Naples LOrientale, Dept Social & Human Sci, Lgo San Giovanni Maggiore 34, I-80134 Naples, Italy
Arbolino, Roberta
Boffardi, Raffaele
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Univ Naples LOrientale, Dept Social & Human Sci, Lgo San Giovanni Maggiore 34, I-80134 Naples, ItalyUniv Naples LOrientale, Dept Social & Human Sci, Lgo San Giovanni Maggiore 34, I-80134 Naples, Italy
Boffardi, Raffaele
Lanuzza, Francesco
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Univ Messina, Dept Econ, Piazza Pugliatti 1, I-98122 Messina, ItalyUniv Naples LOrientale, Dept Social & Human Sci, Lgo San Giovanni Maggiore 34, I-80134 Naples, Italy
Lanuzza, Francesco
Ioppolo, Giuseppe
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Univ Messina, Dept Econ, Piazza Pugliatti 1, I-98122 Messina, ItalyUniv Naples LOrientale, Dept Social & Human Sci, Lgo San Giovanni Maggiore 34, I-80134 Naples, Italy
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Coll Carlo Alberto, BRICK, Turin, Italy
Univ Turin, Dept Econ, Lab Econ Innovat F Momigliano, I-10124 Turin, Italy
Univ Manchester, CRIC, Manchester M13 9PL, Lancs, England
Columbia Univ, New York, NY USAColl Carlo Alberto, BRICK, Turin, Italy