ABSTRACT
This chapter discusses the main determinants behind the pattern of Italy’s regional inequality. Regional income inequality was on the rise from around unification until the end of the Second World War. From the 1970s onwards, however, when the national growth slowed down and ultimately came to a halt, the index of regional inequality also remained more or less unchanged; it even increased slightly. After unification, the regional imbalances increased at a very slow rate. When Italy entered the economic miracle, it also entered a phase of general regional convergence. Regional policies in favour of the south continued, but they were redirected towards unproductive expenditure, and even came to favour illegal activities. From the 1970s onwards, however, when the national growth slowed down and ultimately came to a halt, the index of regional inequality also remained more or less unchanged; it even increased slightly.
