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Bank of Italy - Household Income and Wealth in 2012, January 2014: incomes and wealth are increasingly concentrated in the hands of the richest households…

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JANUARY 27, 2014, The Bank of Italy has released its study on “Household Income and Wealth in 2012”. In particular, from this publication strongly emerges a further concentration in the incomes distribution (less people gain more and more people gain less) and in the wealth distribution (the 10% richest households owns almost 50% of Italian total wealth).
 
A first important aspect underlined in the study is the evolution in the family structure. According to the survey, one-member families have grown (28.3% of the total number of families, compared to 24.9% in 2010), while couples (with and without children) decreased in the 2010-2012 period.
 
From an economic point of view, between 2010 and 2012 the economic conditions of the surveyed households worsened. In particular, the equivalent income, an income measure which takes into account the size and demographic structure of the family, in 2012 averaged approximately €17,800  (that is €1,500  per month). It is lower for the young and the elderly: it ranges from 1,250 euro per month for people up to 18 years to € 1,800 for individuals aged between 55 and 64 years; it is approximately 1,700 euros a month for the elderly.
 
The concentration in the distribution of incomes has increased: the Gini index on “equivalent incomes”, has grown to 33.3%, from 32.9% in 2010; it was 32.7% in 2008. The percentage share of the poor (that are households with an equivalent income lower than half the median observed in each year – relative poverty), was 14.1% (slightly lower than in 2010), with picks of 24.7% in Southern Italy and over 30% for abroad-born people.
 
The household net wealth, that is the sum of real activities (real estates, firms and valuable objects) and financial activities (bank deposits, State’s bonds, companies’ shares, and so on..) net of financial liabilities (mortgages and other debts), shows a median value (the one of the household that occupies the central position in the wealth distribution) is €143,300. 10% of Italian families owns 46.6 percent of Italian total net wealth (in 2010 they were owning 45.7%). The share of households with a negative net wealth has increased to 4.1%, from 2.8% in 2010. Finally, the concentration in the distribution of wealth, based on the Gini index, is 64%, an increase compared to 62.3% in 2010 e 60.7% in 2008.
 

Source:  LTEconomy elaboration on Bank of Italy

 
LTEconomy,  February 4, 2014

From Bank of Italy, January, 2014