Unequal Unification? Income Inequality and Unification in 19th Century Italy and Germany

This research provides a comprehensive study of the linkages between unification and related policy choices on income inequality by examining the cases of Italy and Germany in the context of 19th century unification. To conduct this analysis, the study puts forward estimates of income inequality for pre-unification German states using social tables, compiled using primary data, some of which have thus far been unexplored in economic research. The findings suggest that differences in inequality between regions were more pronounced in Italy than in Germany. In seeking explanations for these trends, the study explores linkages between institutional structures, governance frameworks and inequality, connecting the research on federalism with the literature on inequality extraction. (Stone Center on Socio-Economic Inequality Working Paper)