Prof. Barbara Martini (p)

Socio-spatial inequalities in labour markets have intensified across European regions, reflecting deep territorial polarisation in economic structures and employment opportunities. In Italy, persistent disparities between macro-regions are closely linked to sectoral specialisation patterns that shape both the quality of employment and the distribution of social groups across economic activities. This paper examines how socio-spatial polarisation is manifested through sectoral employment structures, focusing on segregation by gender and migration status across macro-regions.
Using microdata from the Italian Labour Force Survey, the analysis exploits detailed sectoral classifications of economic activity (CAT12, CAT5 and CAT3) to capture employment distribution across highly disaggregated sectors, aggregated at the macro-regional level. This approach allows for a fine-grained examination of how different territories specialize in specific segments of the economy and how such specialization processes are associated with labor market segmentation and social exclusion risks.
The study combines descriptive measures of sectoral concentration and segregation with econometric analysis of employment allocation across sectors. Particular attention is given to the probability of employment in low-productivity and precarious sectors, which are typically associated with lower wages, limited career mobility, and higher vulnerability to economic shocks. These outcomes are analyzed in relation to territorial location, gender, and migrant status, highlighting intersectional mechanisms of disadvantage.
Preliminary results point to strong socio-spatial polarization in Italy, with Northern regions displaying higher concentrations of employment in manufacturing and advanced services, while Southern regions are disproportionately specialized in low-value-added services and agriculture. Women and migrants are significantly overrepresented in sectors characterized by lower job quality, particularly in economically weaker territories. These patterns reveal how sectoral structures operate as a key transmission channel through which territorial inequalities translate into social exclusion and labour market vulnerability.
By linking detailed sectoral employment structures with socio-spatial disparities, this paper contributes to the regional science literature on polarization and segregation. It underscores the importance of territorially targeted and inclusive labor market policies aimed at reducing structural inequalities, improving job quality, and fostering balanced regional development.

Dr. Maciej Jagódka (p)

Sustainable development in Europe increasingly depends on the capacity of regions to maintain social cohesion while facing persistent and, in some cases, widening income disparities. Although the European Union has long pursued territorial and social convergence, recent megatrends — including technological change, demographic shifts, labour‑market restructuring and the green transition — have introduced new pressures that challenge the inclusiveness of growth. This paper examines how income distribution patterns interact with regional development trajectories and assesses the extent to which inequality undermines or reinforces the goals of sustainable and cohesive development.

Using harmonised datasets such as EU‑SILC, Eurostat regional indicators and OECD well‑being metrics, the study maps multidimensional inequality across European regions and identifies structural factors that shape divergent outcomes. Particular attention is given to the interplay between income inequality, access to public services, labour‑market opportunities and institutional capacity. The analysis explores whether current EU policies — including cohesion policy, the European Pillar of Social Rights and the Green Deal — are sufficient to mitigate emerging socio‑economic divides.

The paper also contributes a critical voice to the ongoing debate on the short‑ and medium‑term risks that sustainable development agendas pose for structurally weaker regions, especially those with limited institutional capacity and constrained labour‑market adaptability. By highlighting these vulnerabilities, the study aims to inform more resilient, inclusive and territorially balanced development strategies for Europe.

Prof. Graziella Bonanno, Prof. Francesca Condino, Prof. Filippo Domma, Dr. Lucia Errico (p), Dr. Sandro Rondinella, Prof. Francesco Trivieri

Income inequality represents a central challenge for both advanced and developing economies, with increasing attention devoted to the role of financial systems in shaping distributive outcomes. In particular, financial inclusion, defined as the availability and accessibility of financial services, has been identified as a potential mechanism influencing income distribution through its effects on households’ and firms’ economic opportunities. While existing empirical evidence suggests that broader access to financial services may contribute to reducing inequality, findings remain mixed and highly context-dependent. This paper analyses the relationship between financial inclusion and income inequality in Italy from a territorial perspective. Italy provides a particularly relevant setting due to its persistent regional disparities, heterogeneous economic structures, and significant variation in the local availability of banking services. The study investigates whether differences in access to financial services are associated with heterogeneous patterns of income distribution across municipalities. The empirical analysis relies on a territorial panel dataset covering Italian municipalities over the period 2010–2022. Income inequality is measured using standard distributional indicators, including the Gini coefficient derived from fiscal data. Financial inclusion is proxied by indicators capturing the availability of banking services. Given the bounded nature of the inequality measures, the econometric strategy employs Beta regression models within a multilevel framework, allowing for the modelling of fractional response variables and the consideration of hierarchical territorial structures. Preliminary results indicate a statistically significant association between financial inclusion and income inequality. Municipalities characterised by greater availability of banking services tend to exhibit lower levels of income dispersion. The findings also reveal territorial heterogeneity, with stronger effects observed in economically weaker or more peripheral areas. These results suggest that access to financial services constitutes a relevant dimension of local welfare conditions. From a policy perspective, the evidence highlights the importance of considering the territorial distribution of financial services as a complementary tool to social and cohesion policies aimed at reducing income inequality.

Prof. Martin Gornig (p), Dr. Jan Goebel (p)

While regional income disparities are often assessed in terms of overall inequality, less attention has been paid to income polarization, i.e. the erosion of the middle-income group and the growing distance between lower- and upper-income households. This paper analyzes the long-term development and spatial differentiation of household income polarization in Germany, with a particular focus on urban–rural and East–West divides.
We draw on data from the German Socio-Economic Panel (SOEP), covering more than 25,000 households over several decades, and apply the Esteban-Ray-Gradín polarization index, which explicitly captures changes in the relative size and separation of income groups. Polarization is examined across different regional types, distinguishing between urban and rural regions as well as between eastern and western Germany.
The results reveal three main findings. First, income polarization increased sharply in the early 2000s, followed by a phase of relative stability and a slight decline after 2015, before recent developments again indicate rising polarization. Second, substantial regional disparities persist, with higher polarization levels in western compared to eastern Germany and noticeable differences between northern and southern regions of the former Federal Republic. Third, and most importantly, urban-rural differences dominate the spatial pattern of income polarization. Polarization is consistently higher in urban regions and has increased significantly more strongly since the 1990s. Currently, polarization indices in urban areas exceed those in rural regions by almost one-sixth.
A closer comparison shows that once these urban–rural differences are considered, East-West differences largely disappear. Urban regions in eastern and western Germany exhibit very similar levels of income polarization, as do rural regions. These findings suggest that urbanization-related processes rather than historical East-West legacies are the main drivers of regional income polarization in Germany. The paper contributes to the regional science literature by highlighting the importance of polarization measures for understanding spatial income dynamics and by providing evidence with broader relevance for regions facing increasing urban-rural divides across Europe.

Prof. Maciej Smętkowski (p)