Unequal unification? Income inequality and unification in nineteenth century Italy and Germany

Abstract

This research provides a comprehensive study of the linkages between institutional structures, balance of power between core and peripheries, endogenous extractive policies and inequality in the context of nineteenth century unification of Germany and Italy. 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 the power balance between core and periphery, systems of government as well as distorted policies contributed to differences between the Italian and German experiences, specifically to the rise of inequality in the former and no marked increase in the latter.