roiw_337 779..802 THE DISTRIBUTION OF TOTAL WEALTH IN ITALY: 1991–2002

We estimate an “augmented ” measure of wealth incorporating social security wealth for the first time in Italy, and examine the composition and distribution of such augmented wealth among Italian households during the period 1991–2002. The path followed by augmented wealth from 1991 to 2002 is determined by two opposing forces: namely an increase in net worth and a decline in social security wealth, which appears to be much more pronounced in the first part of the period. Wealth inequality, after rising steeply at the beginning of the 1990s, leveled off during the second part of the period in question. The major contribution toward this upwards movement came from social security wealth, the distribution of which, although less unequal than that of real wealth and financial wealth, widened at a much faster pace at the beginning of the decade. 1