The Distribution of Corporate Profits: Factors of Inequality Among Italian Firms

Corporate profits in Italy are not only an indicator of the financial health of companies, but also an invaluable parameter for assessing economic inequality, both between and within companies. From an analysis of the relationship between profit, number of employees, and net worth for a sample of companies operating in different sectors from 2014 to 2023, a marked inequality in the distribution of profits emerges, discernable also at a regional level. The Lorenz Curve gives us a graphical representation of the cumulative distribution of profits, while the Gini Index provides a summary measure of the inequality we observe. The results of our study offer managers concrete tools for optimizing resource allocation strategies and minimizing internal inequality, helping improve corporate competitiveness.