Exploring polarisation in economic hardship among Italian macro-regions

Abstract

Economic polarisation in a society may be defined as the creation of groups with strong within-group identity and significant distance from other groups, where the distance is measured in terms of income. The literature on social conflicts considers polarisation a menace to political stability. Italy is characterised by a wide economic divide between the north and the south. This paper investigates the polarisation among Italian macro-regions in 2004-2016. We find that polarisation is low across the country. Paradoxically, the large inequalities inside each region, by hampering the formation of group identity, have hindered the increase in polarisation.