by Gianpaolo Annese
Between Modena city and some mountain towns such as Fiumalbo and Pievepelago the difference in income exceeds 11 thousand euros: two hours’ drive away therefore life can change drastically. But the picture also changes within the same capital: between the historic center and a part of the suburbs the income varies by 8 thousand euros. Furthermore, in all the municipalities of the province, income is increasing, but is being eaten up by inflation: in practice families have more money than a few years ago, but they can buy fewer things with it because prices have risen more than salaries. Finally, after Modena, the richest municipalities are Formigine, Sassuolo and Mirandola, the ‘poorest’ are those in the mountains.
The data emerge from research that the economist and professor at the University of Modena Massimo Baldini is carrying out on behalf of Unimore, an analysis that starts from 2008 and reaches 2022: a snapshot of how the standard of living in our province is changing . “In nominal terms – explains Baldini – in 2022 incomes grew in the province of Modena by around 4%, but in the same year inflation at 8.3% led to a reduction in real incomes everywhere. With the same salary, people actually found themselves with less money in their pockets, less purchasing power.”
Two classifications must be considered. In first place in the province among the municipalities with at least 20 thousand inhabitants is Modena city with an average income (calculated on those with positive taxable income) of 27,423 euros, then Formigine with 26,907 followed by Sassuolo (25,723). Mirandola (23,903) and Vignola are positioned in the middle part of the ranking with 23,619 euros, followed by Castelfranco (23,171) and Carpi with 22,936 euros.
However, if we consider all the municipalities in the province, the richest is Castelnuovo with 28,108 euros, followed by Modena. This special ranking ends with some towns in the Lower and above all the mountain municipalities. Fiumalbo has the lowest average income (17,210 euros), then Pievepelago, Palagano and Lama Mocogno. It must be considered that, like all averages, the differences are not taken into account: it is clear that, especially in small towns, a few rich taxpayers are enough to make the overall amount skyrocket.
Professor Baldini’s study in any case delves into the data within the municipality of Modena and discovers that “there are very significant differences in average incomes, which go from 31,322 euros in the historic center to 27,939 in the entire southern area of the municipality of the historic centre, to 23,353 in the northern area. In the historic centre, 3% of taxpayers declare more than 120 thousand euros, a percentage that drops to 2% in the southern area and less than 1% in the northern area”.
In general, what can be seen is that at a nominal level in the province, incomes have increased compared to 2008, but as we said, the notable recent increase in prices has nullified these increases, contributing to ‘impoverishing’ families”. But what is the key factor that makes the difference between one territory and another? “Certainly – observes Baldini – industrial activities, but also high added value services: the presence of managers, doctors, lawyers, insurance and business consultants increases revenues. In this sense we understand the difference between the capital city and the mountain”.
The economist then noted another element in recent months: the increase in the number of incomes from employment. And the debate on the causes of an increase in employment greater than GDP growth is open. “It is likely due to the decline in real wages which makes work less ‘expensive’ for companies, which are taking the opportunity to hire.” Another possible reason is that “many people have decided to enter the job market because the increase in the cost of living makes it more difficult for families to support their expenses, therefore a single income from work is not enough and there is a need of additional revenue”.
