Wars, Depression, and Fascism: Income Inequality in Italy, 1901-1950

This paper presents yearly estimates of income inequality in Italy from 1901 to 1950. By constructing dynamic social tables, we comprehensively assess inequality across all elements of Italian society and compare Italy with other countries over the same period. In a context of declining inequality across Europe, interwar Italy reveals a trajectory at odds with consolidated narratives: a sharp increase of inequality during World War I, a reversal during 1918–1922, a renewed rise after the Fascist takeover, and new peaks during World War II. Our results allow us to identify sizeable short-term distributive shocks and discuss the political economy of fascist Italy, reinforcing a reinterpretation of interwar inequality trends in Europe and the regressive nature of fascist regimes.