Ratio 4 Small regions Large regions Top 20 % richest over ... · Productivity trends, most and least dynamic regions, 2000-16 Youth unemployment rate, 15-24 years old, 2007-17 90

Updated the 5th of March 2019

Regional gap in GDP per capita, 2000-16 Index of regional disparity in GDP per capita, 2016

The already large regional economic disparities in Italy have slightly increased over the last sixteen years. In the province of Bolzano-Bozen the level of GDP per capita was two and a half times higher than in Calabria in 2016.

With a productivity growth of 0.2% per year over the period 2000-16, Bolzano-Bozen experienced the highest productivity growth among Italian regions, much below the OECD average of 1.1% in the same period. With a negative productivity growth of -1% per year in Molise, the gap with Bolzano-Bozen has widened further, especially since 2010.

Notwithstanding a small improvement in recent years, youth unemployment rate in Calabria is still among the highest in the OECD area, with over 55% of youths unemployed. Youth unemployment rates above 50% are also observed in Apulia, Campania and Sicilia, while the province of Bolzano-Bozen shows the lowest rate in the country (10% in 2017).

Productivity trends, most and least dynamic regions, 2000-16 Youth unemployment rate, 15-24 years old, 2007-17

Source: OECD Regional Database. Notes: (1) Figure on regional gap in GDP per capita: OECD regions refer to the administrative tier of subnational government (large regions, Territorial Level 2); Italy is composed of 21 large regions. (2) Figure on index of regional disparity: top (bottom) 20% regions are defined as those with the highest (lowest) GDP per capita until the equivalent of 20% of national population is reached, this indicator provides a harmonised measure to rank OECD countries, using data for small regions (Territorial Level 3) when available. (3) Productivity is measured as GDP per employee at place of work in constant prices, constant Purchasing Power Parities (reference year 2010).

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

50 000

55 000

2000 2005 2010 2016

GDP per capita in USD PPP

Lowest regionCalabria

Highest regionBolzano-Bozen

20 323 USD

51 567 USD

33 537 USDItaly

1

2

3

4

Top 20 % richest over bottom 20% poorest regionsRatio

Country (number of regions considered)

Small regions(TL3)

Large regions (TL2)

2016 2000

Italy

60 000

65 000

70 000

75 000

80 000

85 000

90 000

95 000

100 000

2000 2005 2010 2016

GDP per worker in USD PPP

Molise: lowest productivity growth (-1% annually)

Bolzano-Bozen: highest productivity in 2016 and highest productivity growth (+0.2% average annual growth over 2000-16)

OECD

0

10

20

30

40

50

60

70

2007 2012 2017

rate (%)

Lowest rateProvince of Bolzano-Bozen

Highest rateCalabria

10%

55.7%

34.7%Italy

Regions and Cities at a Glance 2018 – ITALY http://www.oecd.org/regional

Economic trends in regions

Updated the 5th of March 2019

Relative ranking of the regions with the best and worst outcomes in the 11 well-being dimensions, with respect to all 402 OECD regions. The eleven dimensions are ordered by decreasing regional disparities in the country. Each well-being dimension is measured by the indicators in the table below.

Italy has the largest regional disparities among OECD countries in terms of unemployment rate and the second largest disparities in terms of safety (homicide rates). While Aosta Valley ranks among the safest 1% of OECD regions, Sicily ranks among the bottom 10%. With respect to other OECD regions, all Italian regions have improved their relative ranking in health (life expectancy) since 2000 and are now in the top 20% healthiest OECD regions, with the exception of Campania and Sicily.

The top performing Italian regions fare better than the OECD median region in most well-being indicators, except for unemployment rate, air pollution, self-evaluation of life satisfaction and the share of labour force with at least a secondary degree.

Source: OECD Regional Database. Visualisation: https://www.oecdregionalwellbeing.org. Notes: (1) OECD regions refer to the first administrative tier of subnational government (large regions, Territorial Level 2); Italy is composed of 21 large regions. (2) Household income per capita data are based on USD constant PPP, constant prices (year 2010).

AostaValley

Bolzano-Bozen Liguria

Basilicata

Bolzano-Bozen

AostaValley

LombardyLiguria

Trento

Veneto

Trento

Sicily Calabria

Molise

Lombardy

Calabria

Calabria

Calabria Campania

Campania

Sicily

Apulia

Safety Jobs Community Environment Income LifeSatisfaction

Access toservices

Housing Health CivicEngagement

Education

Top region Bottom region

Ra

nkin

g o

f O

EC

D r

eg

ion

s(1

to

40

2)

top

20

%b

otto

m 2

0%

mid

dle

60

%

Lazio Regions

Top 20% Bottom 20%

Safety

Homicide Rate (per 100 000 people), 2016 1.4 1.3 0.4 4.5

Jobs

Employment rate 15 to 64 years old (%), 2017 57.8 67.7 70.3 41.0

Unemployment rate 15 to 64 years old (%), 2017 11.5 5.5 6.3 21.7

Community

Perceived social netw ork support (%), 2013 88.6 91.4 93.0 84.3

Environment

Level of air pollution in PM 2.5 (µg/m³), 2015 19.2 12.4 12.5 37.4

Income

Disposable income per capita (in USD PPP), 2016 19 552 17 695 24 027 13 928

Life Satisfaction

Life satisfaction (scale from 0 to 10), 2013 6.3 6.8 6.7 5.8

Access to services

Households w ith broadband access (%), 2017 79.0 78.0 80.8 70.0

Housing

Rooms per person, 2016 1.7 1.8 1.9 1.6

Health

Life Expectancy at birth (years), 2016 83.4 80.4 84.0 82.1

Age adjusted mortality rate (per 1 000 people), 2016 6.6 8.1 6.2 7.3

Civic engagement

Voters in last national election (%), 2017 or lastest year 72.9 70.9 78.3 62.9

Education

Labour force w ith at least upper secondary education (%), 2017 67.5 81.7 73.2 60.2

Italian regionsCountry

Average

OECD median

region

Differences in well-being across regions

Updated the 5th of March 2019

OECD population is concentrated in cities* Percentage of population in cities, 2016

Source: OECD Metropolitan Database. Number of cities: 84 in Italy and 1 138 in the OECD.

In Italy, 55% of the population lives in cities of more than 50 000 inhabitants. The share of population in cities with more than 500 000 people is 35% compared to 55% in the OECD area.

Importance of metropolitan areas Cities above 500 000 people, 2016

Contribution of metropolitan areas to GDP growth Cities above 500 000 people, 2001-16

Metropolitan areas in Italy account for 40% of national GDP. Between 2001 and 2016, the GDP was growing in metropolitan areas whereas it was shrinking in the rest of the country.

Milan, the richest metropolitan area of Italy in terms of GDP per capita, is close to the top 20% of the 327 OECD metropolitan areas. Four Italian metropolitan areas are among the poorest 20% metropolitan areas.

In terms of PM 2.5 levels, Padua, Milan and Venice are among the 10% most polluted OECD metropolitan areas.

OECD Metropolitan areas ranking Cities above 500 000 people

GDP per capita, 2016

Air pollution (PM2.5), 2017

Source: OECD Metropolitan Database. Note: number of metropolitan areas with a population of over 500 000: 13 in Italy compared to 327 in the OECD. * Note: Cities are defined here as functional urban areas, which are composed by high-density urban centres of at least 50 000 people and their areas of influence (commuting zone). For more information, see: http://www.oecd.org/cfe/regional-policy/functionalurbanareasbycountry.htm.

35%

5%

15%

45%

United States

people in citieswith population above 500 000

peopleoutside cities

United States

people in cities withpopulation between50 000 and 250 000

60.7 million people - 55% live in cities

United StatesItaly

people in cities with population between 250 000 and 500 000

OECD average

1.2 billion people - 70%live in cities

people in citieswith population

above 500 000

people in cities withpopulation between

50 000 and 250 000

peopleoutside cities

55%

9%

30%

people in cities with populationbetween 250 000 and 500 000

6%

40% 37% 35%

63%58% 55%

0

10

20

30

40

50

60

70

80

% of nationalGDP

% of nationalemployment

% of nationalpopulation

Italy OECD average%

0.1%per year

-0.2%per year

-0.3

-0.2

-0.1

0.0

0.1

%

Italian metropolitan areas Rest of the country

0

20 000

40 000

60 000

80 000

100 000USD PPP

Top 20% richest metropolitan areas

Bottom 20% poorest metropolitan areas

0

10

20

30

Lev el of air pollution in PM 2.5 (µg/m³)

Top 20% least polluted metropolitan areas

Bottom 20% most polluted metropolitan areas

Metropolitan areas in the national economy

Updated the 5th of March 2019

Subnational government expenditure by function As a share of total subnational government expenditure, 2016

Subnational government expenditure amounts to USD 5 473 per capita in Italy compared to an OECD average of USD 6 817. In Italy, this is equivalent to 28.9% of total public expenditure and to 14.3% of GDP. In comparison, across the OECD, subnational government expenditure accounts for 40.4% of total public expenditure and for 16.2% of GDP. Health and general public services are the two largest spending items for subnational governments in Italy: together they represent 62% of subnational expenditure compared to 32% in the OECD area.

In Italy, 52.6% of total public investment was carried out by subnational governments compared to an OECD average of 56.9%.

Role of subnational governments in public investment Subnational government public investment per capita, 2016

Source: OECD Subnational Government Structure and Finance Database. Note: The function ‘Other’ includes housing and community amenities, recreation, culture and religion; environment; public order and safety.

OECD Regions and Cities at a Glance 2018

The 2018 edition of OECD Regions and Cities at a Glance shows how regions and cities contribute to national growth and the well-being of societies. It updates its regular set of region-by-region indicators, examining a wide range of policies and trends and identifying those regions that are outperforming or lagging behind in their country.

Consult this publication on line: https://oe.cd/pub/2n9

Social protection 0.3% 14% Social protection

Economic affairs 13% 14% Economic affairs

Education 6% 25% Education

General public services 14% 14% General public services

Other 14% 15% Other

HealthHealth 48% 18%

0

1

2

3

4

5

6

7

0

1

2

3

4

5

6

7

Italy OECD average

Subnational expenditure per capita: USD 5 473 USD 6 817

0

200

400

600

800

1 000

1 200

1 400

Total public investmentUSD 824 per capita2.1% of GDP

Total public investmentUSD 1 278 per capita3.0% of GDP

Subnational governmentinvestmentUSD 433 per capita52.6% of public invest.

USD per capita

Subnational government investmentUSD 727 per capita 56.9% of public invest.

OECD averageItaly

Subnational government finance