Showing posts with label Economics. Show all posts
Showing posts with label Economics. Show all posts

Resources and Industry in the North

December 30, 2011

In a recent post I showed how Italian geography favors the North when it comes to farming, trade and industry. The latter is a primary source of wealth in the modern world, and even though Southern Europe's coal reserves are small and of poor quality, Northern Italy has been able to compensate with hydroelectric power because of its geographical features and natural resources.

The objective of this article is to analyse the importance of one of the new energy sources, electricity, since the end of the nineteenth century until 1945, from the point of view of natural resource endowments. Not all countries had good or equivalent endowments of coal, the energy-producing mineral of the nineteenth century, and for this reason not all of them had the same opportunities to use it, given that the transport cost was very high due to its weight in relation to its caloric power. Electricity reduced the dependence on coal resources as it could be produced not only from coal but also from water.

[...]

The accessible coal endowments available...are presented in Table 1, both in the form of total coal reserves and coal reserves per capita in each country. Well endowed in coal were Canada and the US in North America and Germany, the UK, Austria and — in an intermediate position — France in Europe. The Northern European countries Denmark and Sweden and the Southern European countries Italy, Greece and Portugal all had poor coal endowments. Looking at coal quality, Spain and especially Italy lacked good quality coal; as for the cost of extraction, this was particularly high in France and Spain, due to the characteristics of its seams.

[...]

Natural resources also had effects on the type of electricity being produced in these countries when electricity eventually arrived. [...] The situation was worst in Italy because of the scarcity of coal and its low caloric power. As a result, coal had to be imported. For that reason, electricity was generated by hydraulic power, once the problem of long distance transmission was solved by means of the alternating current. The most important hydraulic resources were concentrated in the Alps and the Po Valley, between the Alps and the Apennines in the North of the country. The regions endowed with the most important sources of waterpower were the Piedmont and Lombardy, the Po Valley (Adda, Adige, Ticino, Tevere, etc.), the Venetia region and that of Umbria.

[...]

We have calculated the proportion of hydroelectricity and thermoelectricity in the total electricity production of each country. As shown in Figure 1, at the top of the countries using hydroelectricity were Canada, Italy and Spain. Hydroelectricity accounted for over 80 per cent of their electricity production. At the bottom, using less than 60 per cent, as already commented, were the coal intensive countries, i.e. the UK, the USA, and France, although, France had a lesser proportion of thermoelectricity.

[...]

The degree of electrification advanced substantially from the end of the nineteenth century until WWII, the height of the process being 1925, after WWI, when real electricity prices fell considerably. The behaviour of the relative prices electricity-coal, coupled with the new technical opportunities for electrification in the manufacturing sector where electricity competed with steam, produced important possibilities for economic growth. There was also a relationship between the accumulation of physical capital and electrification process and the increase in labour productivity, manufacturing and income per capita, especially in the countries that were badly endowed with coal deposits, but enjoyed better opportunities for the production of electricity.

Concha Betrán. "Natural Resources, Electrification and Economic Growth from the End of the Nineteenth Century until World War II". Revista de Historia Económica, 2005.

Related: Geography and Industry

Geography and North-South Disparities

November 19, 2011

Books like Guns, Germs, and Steel and The Botany of Desire, and discoveries like the impact of infectious disease on IQ and climate shifts on the fall of Rome, have shown what a huge role geography and environment play in shaping development and the course of history. Stanford economist Thomas Sowell describes this phenomenon at work in modern Italy, showing how socioeconomic and other disparities between North and South that are often attributed to behavioral or biological factors actually have deep roots in the lay of the land.

Arable land is both scarce and scattered in southern Italy, leading to many isolated settlements — contributing in turn to the linguistic and other cultural differences. Moreover, there are very few long navigable rivers to facilitate trade and communication. Such modern means of travel or communication as broadcasting, railroads, and airlines were of course not yet in existence, or were not yet significant in southern Italy, when the massive immigration to America was taking place. Even in the middle of the twentieth century, however, geographical isolation was still extreme in some southern Italians villages.

[…]

The climate and terrain of southern Italy contributed to its poverty. While the temperatures are relatively mild, rainfall is both low and concentrated in only a few months. The growing season is dry — "drought may endure for six months or more." When the rains finally come, they are torrential, causing erosion. The dryness during the growing season in turn limits the use of fertilizers. The impermeability of much of the hilly soil facilitates rapid water runoff when it does rain, and the deforestation of southern Italy's once heavily wooded areas adds to both erosion and the collection of water in stagnant pools, breeding malaria. Italy has been the most malarial country in Europe, and southern Italy more so than the rest of the country. In addition to the direct suffering and death caused by malaria, disease also exacted an economic toll. Because the most fertile lowlands were also the most malarial, peasants and agricultural workers lived up on hillsides in order to be away from the malaria-bearing mosquitoes at night, when they bite. This in turn meant that much of the day was spent going to and from home and work — often miles apart — instead of actually working.

While much of southern Italy is hilly and mountainous, the highlands are at just the wrong height for agricultural purposes. They are too high and rugged to be good cropland and too low to collect snow, which would melt and give a slow, steady runoff of water during the spring. In addition to lacking these advantages common in some other European countries, Italy also does not have its sod broken up by nature through successive freezes and thaws during the winter. The southern Italian farmer must perform the vital function of breaking up the soil entirely by his own efforts and that of his animals pulling the plow.

Italy's natural deficiencies are both agricultural and industrial. About three quarters of the land area of Italy consists of mountains and hills. Only about half of the land is arable, and most of that is in northern Italy. In the south, the mountains "reach so close to the sea that arable land is limited to mountain villages, high plateaus, or coastal plains" — the latter being generally "very narrow." Italy is also lacking in both the quantity and quality of coal and iron ore needed for producing iron and steel — a mainstay of modern industry.

History has added to the problems created by nature. Southern Italy was long a battleground for contending empires and dynasties, which fought back and forth across the Italian peninsula for centuries, going back at least as far as the Roman Empire. For two centuries during the Middle Ages, invasions were "frequent and almost annual." At various times, southern Italy was conquered by a variety of foreigners, including the Lombards, the Arabs, and the Normans. Massacres, pillage, rape, and enslavement were the common fate of the population.

[…]

Northern Italy has been better treated by both nature and man. The rain falls in the spring and summer, when it is needed for agriculture. It has "several rivers, whose waters are kept at a relatively steady level by melting Alpine snows," and those "provide considerable water and power for agriculture and industry." In addition, northern Italy has "a system of irrigation that has been nowhere excelled and rarely approached" — at least during the era of massive immigration to America. Northern Italian agriculture has been described as "luxuriant under cultivation," yielding "a notable variety of crops." Deforestation and other natural and man-made evils of the south were less prevalent in the north.

Thomas Sowell. Ethnic America: A History. New York: Basic Books, 1981.

Related: Resources and Industry in the North

Another Richard Lynn Refutation

October 6, 2011

They just keep coming. The others can be found here.

As stated at the outset, the aim of this analysis is not to demonstrate that IQ in Southern Italy is the same or higher than that in the North. On the other hand, a simple statistical exercise, based on correlations among variables, such as that by Lynn, is far from conclusive. Recent studies have shown a significant statistical relationship (p-value = 0.008) between the presence of storks in the European continent and the birth rate (Matthews, 2000); an association which seems particularly remarkable in the case of Germany (Höfer et al. 2004). We know how hard it is to explain causality by means of statistical exercises and certainly causal relationships are not captured by simple statistical correlations.

Our previous discussion suggests a different relationship among the variables analyzed by R. Lynn and those collected in the present article. Allowing that school tests are representative of differences in IQ, we have seen that:

  • they clearly show how the North-South difference in cognitive ability does not exist at the age of 7. The correlation between regional educational achievement (INVALSI) and regional per capita income becomes positive (0.44) at the age of 10, but is, however, considerably lower than that found through PISA test scores;
  • the IQ-average income relationship did not exist in the past, although if it had derived from a genetic difference, it would consequently have done so;
  • knowledge of genetic differences in Italy does not support Lynn's opinion that peoples from North Africa and the Near East strongly influenced the genetic structure of the Southern Italian population. Genetically, the influence of the Phoenicians and the Near East populations accounts for a very small fraction, while the predominant genetic influence derives from the long phase of Greek colonization.

The existence of differences in IQ, as revealed by school tests and other tests (supposing that these actually reveal "fundamental" diversities in intelligence), seems much better explained as being socially, economically and historically influenced rather than being genetically determined. Capabilities in problem solving are enhanced by a developing and stimulating environment, according to the so-called "Flynn effect".

In the past, the Southern Italian economy has at times been more advanced than the Northern one; for example during both the Roman antiquity and the high Middle Ages. Perhaps the North and the Centre were more advanced than the South in the late Middle Ages; although nothing certain can be said on the matter. The following decline of the Italian economy as a whole, from the late Middle Ages until the end of the 19th century, probably cancelled the existing economic differences. When per capita GDP diminishes and approaches the level of bare subsistence, differences among regions disappear. In the 19th century, Italy was a relatively backward country both in the North and the South. The statistical material available from the end of the 19th century onwards, does not actually indicate a deep North-South divide, in economic terms. The start of modern growth from then on affected the North much more than the South and economic disparity began to exist between the two parts of the country. In 1891 the North-South difference in per capita GDP was less than 10 percent; it was 20 percent on the eve of World War 1, and 45 per cent after World War 2. In 2010, per capita GDP in the South is about 60 percent that of the North. As ordinarily happens, relative backwardness implies the accumulation of adverse influences. While literacy and years of education grew in the North with respect to the South, infant mortality diminished much more quickly in the North than the South. Institutions, including families and schools, work much better in prosperity than backwardness. Estimates of IQ are likely to be higher where families, municipalities, provinces and regions invest more in education. Remarkable emigration from the South to the North, especially between 1950 and 1975, increased the North-South diversity since emigration, in Italy as elsewhere, is always selective. Since IQ registers education and years of schooling to a greater extent than intelligence, the relative position of the South compared to the North deteriorated in both the cultural environment and the economy more or less contemporaneously.

Daniele and Malanima. "Are people in the South less intelligent than in the North? IQ and the North-South disparity in Italy". Journal of Socio-Economics, 2011.

Affirmative Action Idiocy

January 2, 2011

Vincenzo Milione, a researcher at the Calandra Italian American Institute, is leading a group of professors and staff members accusing the City University of New York (CUNY) of discrimination because they feel Italian-Americans are not represented well enough among its employees, invoking everything from historical mistreatment to modern media stereotypes to bolster their case. An article in the New York Times covered the story and reveals what's really going on here:

In the presentation, Dr. Milione argued that Italian-American representation on the faculty and the staff had remained flat — between 5 percent and 6 percent — over three decades, while that of groups like blacks, Latinos and Asians had climbed.

"Did affirmative action work at CUNY?" he asked in a recent interview. "Yes. But it did not work for Italian-Americans." The New York office of the Equal Employment Opportunity Commission ruled that his suit had merit.

CUNY officials said that Dr. Tamburri would not comment, but they defended the university's record. As of last fall, they said, Italian-Americans represented about 7 percent of the full-time instructional staff of 11,000, up from 5.8 percent in 1981. While the increase was modest, it occurred while the proportion of white employees fell sharply, to 54 percent from 74 percent, as the university strove to hire blacks and Latinos.

"Were CUNY not proactively engaging in affirmative action for Italian-Americans, one would expect to see Italian-American representation in CUNY fall at the same rate as that of whites," Jennifer S. Rubain, university dean for recruitment and diversity, said in a statement. "That has not happened."

Like other research universities that receive federal money, CUNY must extend affirmative action hiring protections to a variety of government-designated groups, including blacks and Latinos. University officials say the Department of Labor reviews its progress periodically, but not its efforts for Italian-Americans, because those are voluntary.

Obviously, there's no anti-Italian bias. This is a standard case of mandatory affirmative action for minorities causing an overall drop in white employees. (And Italians are actually faring better than others, as their numbers have increased slightly in spite of that, thanks to voluntary efforts by CUNY.) But instead of faulting the unjust quota policy that passes European-Americans over for jobs, Milione et al. are trying to blame CUNY for the fact that Italians aren't one of the "government-designated groups" who receive affirmative action. A commenter on the NY Times website injects some sanity into the discussion:

I don't see how Italian Americans can qualify for affirmative action programs since Italians are white. Perhaps a claim of reverse discrimination would be more appropriate here.

Indeed. Yet in the article, one of the plaintiffs insists that the problem is specific to CUNY by noting the following:

Joseph V. Scelsa, who was one of the institute's first directors and led the legal fight that resulted in the settlement, said Italian-Americans seemed to be well represented on the staffs of other New York-area colleges, but had long been mistreated at CUNY.

For those unfamiliar, CUNY is New York's public university system, with 70% minority enrollment, and another commenter, himself a CUNY academic, provides a more likely explanation for the observed disparity:

I'm a first-generation Italian-American, a CUNY graduate, and a CUNY faculty member. Italian-Americans may be under-represented at CUNY because, on average, as students, they can afford to go elsewhere and, as adult professionals, they may choose jobs that pay much more and that have more prestige among their upwardly-mobile peers.

So Italian-Americans are doing fine at more prestigious universities without affirmative action, and steering clear of CUNY by choice. Conclusion: Milione and his gang should crawl back into the hole they crawled out of...or at least get a clue and take a page from the New Haven firefighters' playbook.

Italian Immigrant Stereotypes Dispelled

November 22, 2010

The following is an excerpt from an article written around the turn of the 20th century by the Director of the Immigration Publication Society in New York. It's noteworthy because of the statistics it contains that dispel stereotypes about Italian criminality and poverty compared to other European ethnic groups in the Greater New York area (mostly Irish, but also Jews, Germans and Anglos).

Lies have short legs, the Florentine tag has it, but the Italian is still accused of being a degenerate, a lazy fellow and a pauper, half a criminal, a present danger, and a serious menace to our civilization. If there is a substantial basis of truth in these charges, it must appear very clearly in Greater New York, which is now disputing Rome's place as the third largest Italian city in the world. Moreover, New York contains nearly two fifths of all the Italians in the United States, and in proportion to its size it is the least prosperous Italian colony in the country, and shelters a considerable part of our immigrant failures — those who cannot fall into step with the march of American life.

First, as to the paupers. The Italian inhabitants of New York City number nearly 450,000; the Irish, somewhat over 300,000. In males — the criminal sex — the Italians outnumber the Irish about two to one. Yet by a visit to the great almshouse on Blackwell's Island and an examination of the unpublished record for 1904, I found that during that year 1564 Irish had been admitted, and only 16 Italians. Mr. James Forbes, the chief of the Mendicancy Department of the Charity Organization Society, tells me that he has never seen or heard of an Italian tramp. As for begging, between July 1, 1904, and September 30, 1905, the Mendicancy Police took into custody 519 Irish and only 92 Italians. Pauperism has a close relation with suicide, and of such deaths during the year the record counts 89 Irish and 23 Italians. The Irish have always supplied much more than their share of our paupers; but Irish brawn has contributed its full part to the prosperity of the country; and the comparatively large proportion of Irish inmates in all our penal institutions never justified the charge that the Irish are a criminal race, or Irish immigration undesirable. That was the final answer to the Know-Nothing argument!

Nor do court records show that Italians are the professional criminals they are said to be. Take the city magistrates' reports for the year ending December 31, 1901 — the latest date for which all the necessary data are available. At that time, using Dr. Laidlaw's estimate of additions by immigration to the population of the city to May 1, 1902, there were about 282,804 Irish and 200,549 Italians in Greater New York. If the proportion of the sexes remained unchanged from the taking of the census, there were 117,599 Irish males, and 114,673 Italian. This near equality of the criminal sex in the two nationalities makes possible a rough measure of Italian criminality.

In these columns of crime the most striking fact in the Italian's favor is a remarkable showing of sobriety. During the year, 7281 Irish were hauled into court accused of "intoxication" and "intoxication and disorderly conduct," while the Italians arrested on the same charge numbered only 513. With the exception of the Russian Jews, Italians are by far the most sober of all nationalities in New York, including the native born. Next, noticing only offenses committed with particular frequency, the Italians again appear at a pronounced advantage in: Assaults (misdemeanor), 284 Irish and 139 Italians; disorderly conduct, 3278 Irish and 1454 Italians; larceny (misdemeanor), 297 Irish and 174 Italians; vagrancy, 1031 Irish and 80 Italians. Insanity is here listed with crime, and there are 146 Irish commitments to 35 Italian. Irish and Italians are nearly at an equality in: Burglaries, 63 Irish and 57 Italians; and larceny (felony), 122 Irish and 94 Italians. On the other hand, Italians show at the worst in: Violation of corporation ordinance (chiefly peddling without a license), 196 Irish and 1169 Italians; and assault (felony), 75 Irish and 155 Italians. In homicides, quite contrary to the popular impression, the Italians are only charged with the ratio exactly normal to their numbers after taking the average per 100,000 for the whole city, while the Irish are accused of nearly two and one half times their quota: Irish 50, Italians 14. The report for 1903, the last published, after important changes effected by almost two years of immigration, shows an unchanged proportional variation: Irish 59, Italians 21.

The one serious crime to which Italians are prone more than other men is an unpremeditated crime of violence. This is mostly charged, and probably with entire justice, upon the men of four provinces, and Girgenti in Sicily is particularly specified. It is generally the outcome of quarrels among themselves, prompted by jealousy and suspected treachery. The Sicilians' code of honor is an antiquated and repellent one, but even his vendetta is less ruthless than the Kentucky mountaineer's. It stops at the grave. Judged in the mass, Italians are peaceable, as they are law-abiding. The exceptions make up the national criminal record; and as there is a French or English type of criminal, so there is a Sicilian type, who has succeeded in impressing our imaginations with some fear and terror.

[...]

It is important that two or three other truths about the Italian should be known. Like all their immigrant predecessors, Italians profess no special cult of soap and water; and here, too, there are differences, for some Italians are cleaner than others. Still, cleanliness is the rule and dirt the exception. The inspectors of the New York Tenement-House Department report that the tenements in the Italian quarters are in the best condition of all, and that they are infinitely cleaner than those in the Jewish and Irish districts. And the same with overcrowding. One of New York's typical "Little Italies" is inhabited by 1075 Italian families — so poor that only twenty-six of them pay over $19 monthly rent — and yet, when a complete canvass was made by the Federation of Churches, the average allotment of space was found to be one room to 1.7 persons. Like the Germans and Irish of the fifties, our Italians are largely poor, ignorant peasants when they come to us. But by the enforcement of the recent law our present immigrants are greatly superior physically and morally to those of the Know-Nothing days. The difference in criminal records is partly the proof of a better law. The worst of the newer tenements are better than the best of the old kind, and every surrounding is more sanitary. Better schools, recreation piers, public baths, playgrounds, and new parks are helping the Italian children of the tenements to develop into healthy and useful men and women.

[...]

They are honest, saving, industrious, temperate, and so exceptionally moral that two years ago the Secretary of the Italian Chamber of Commerce in San Francisco was able to boast that the police of that city had never yet found an Italian woman of evil character. Even in New York (and I have my information from Mr. Forbes, of the Charity Organization Society) Italian prostitution was entirely unknown until by our corrupt police it was colonized as scientifically as a culture of bacteria made by a biologist; and to-day it is less proportionately than that of any other nationality within the limits of the greater city. More than 750,000 Italian immigrants have come to us within the last four years, and during that entire time only a single woman of them has been ordered deported charged with prostitution.

[...]

From the very bottom, Italians are climbing up the same rungs of the same social and industrial ladder [as the Irish and the Germans]. But it is still a secret that they are being gradually turned into Americans; and, for all its evils, the city colony is a wonderful help in the process. The close contact of American surroundings eventually destroys the foreign life and spirit, and of this New York gives proof. Only two poor fragments remain of the numerous important German and Irish colonies that were flourishing in the city twenty-five or thirty years ago; while the ancient settled Pennsylvania Dutch, thanks to their isolation, are not yet fully merged in the great citizen body. And so, in the city colony, Italians are becoming Americans. Legions of them, who never intended to remain here when they landed, have cast in their lot definitely with us; and those who have already become Americanized, but no others, are beginning to intermarry with our people. The mass of them are still laborers, toiling like ants in adding to the wealth of the country; but thousands are succeeding in many branches of trade and manufacture. The names of Italians engaged in business in the United States fill a special directory of over five hundred pages. Their real estate holdings and bank deposits aggregate enormous totals. Their second generation is already crowding into all the professions, and we have Italian teachers, dentists, architects, engineers, doctors, lawyers, and judges.

John Foster Carr. "The Coming of the Italian". The Outlook, February 24, 1906. (Quoted from: Immigration and Americanization: selected readings. Compiled and edited by Philip Davis and Bertha Schwartz. New York: Ginn and Company, 1920.)

Italian-American Billionaires

October 23, 2010

As far as I can tell, 16 out of the 400 billionaires on Forbes' 2010 list of the richest people in America are Italian or have Italian ancestry. That puts them at 4% of the total, which is not too far from the 5.6% of Americans who report Italian ancestry. Here they are in order of wealth (click each name for a bio):


Rank Photo Name Net
Worth
Age Home Source of
Wealth
#55 Ray Dalio $5 B 61 CT hedge funds
#66 John Paul DeJoria $4.2 B 66 TX hair products,
tequila
#95 John Sobrato & family $3.3 B 71 CA real estate
#124 Philip Falcone $2.8 B 47 NY hedge funds
#136 James Leprino $2.6 B 72 CO cheese
#164 A. Jerrold Perenchio $2.2 B 79 CA Univision
#182 Daniel D'Aniello $2 B 64 VA leveraged
buyouts
#221 Fred DeLuca $1.8 B 63 FL Subway
#252 Leandro Rizzuto $1.6 B 72 WY Conair
#269 Edward DeBartolo $1.5 B 63 FL shopping
centers
#308 Stephen Bisciotti $1.3 B 50 MD outsourcing,
football
#332 Joseph Mansueto $1.2 B 54 IL Morningstar
#332 Tom Golisano $1.2 B 68 FL Paychex
#365 Frank Fertitta $1.1 B 48 NV casinos, UFC
#365 Kenneth Langone $1.1 B 75 NY investments
#385 Lorenzo Fertitta $1 B 41 NV casinos, UFC

Richard Lynn Further Refuted

October 18, 2010

I had recently criticized Richard Lynn's flawed study on IQ in Northern and Southern Italy, and now Italian researchers Cornoldi et al. (2010) have published their own critique, which confirms what I said and predicted:

Working with data from the PISA study (OECD, 2007), Lynn (2010) has argued that individuals from South Italy average an IQ approximately 10 points lower than individuals from North Italy, and has gone on to put forward a series of conclusions on the relationship between average IQ, latitude, average stature, income, etc. The present paper criticizes these conclusions and the robustness of the data from which Lynn (2010) derived the IQ scores. In particular, on the basis of recent Italian studies and our databank, we observe that : 1) school measures should be used for deriving IQ indices only in cases where contextual variables are not crucial: there is evidence that partialling out the role of contextual variables may lead to reduction or even elimination of PISA differences; in particular, schooling effects are shown through different sets of data obtained for younger grades; 2) in the case of South Italy, the PISA data may have exaggerated the differences, since data obtained with tasks similar to the PISA tasks (MT-advanced) show smaller differences; 3) national official data, obtained by INVALSI (2009a) on large numbers of primary school children, support these conclusions, suggesting that schooling may have a critical role; 4) purer measures of IQ obtained during the standardisation of Raven's Progressive Coloured Matrices also show no significant differences in IQ between children from South and North Italy.

Lynn's feeble reply, where he's basically forced to admit he's wrong:

Beraldo (this issue) and Cornoldi, Belacchi, Giofre, Martini, and Tressoldi (2010) (CBGMT) have eight criticisms of my paper (Lynn, 2010) claiming that the large north-south differences in per capita income in Italy are attributable to differences in the average levels of intelligence in the populations. CBGMT give results for seven data sets for IQs in the north and south of Italy. All of these show that IQs are higher in the north than in the south, although the differences are not as great as those I calculated. Other criticisms to the effect that the PISA tests are not measures of intelligence are refuted. The results of two further studies are given that confirm that IQs in the north of Italy are approximately 10 IQ points higher than in the south.

The other critique mentioned there is Sergio Beraldo (2010), which focuses mostly on Lynn's claims about economic differences.

Refuting Richard Lynn's Italian "IQ" Study

September 13, 2010

Controversial psychologist Richard Lynn, who looks at IQ and its correlates, has published a study claiming to show regional (North-South) differences in intelligence within Italy, which he attempts to correlate with achievement and attribute to admixture. The guy's been called just about every name in the book, and he can now add Padanian Nordicist to that list.

Intelligence


Generally speaking, Lynn is not to be trusted. He's been caught numerous times falsifying and manipulating data to fit his conclusions (e.g. here, here, here, here, here and here), and it looks like he's up to his old tricks again.

This time around, he's not even using actual IQ data, but the proxy of scores on reading, math and science tests administered to 15-year-olds (PISA 2006). So he's attempting to quantify innate general intelligence by looking at the academic performance of school kids, a measure that to a large extent involves learned knowledge and other factors. Indeed, while some researchers report a strong correlation between general intelligence and educational attainment, one of Lynn's own sources, Deary et al. (2007), addressing two of his other sources, suggests that caution should be exercised when attempting to equate the two:

There are various possible causes of the cognitive ability-educational achievement association. Bartels et al. (2002b) found a strong genetic correlation between cognitive ability (measured at 5, 7, 10, and 12 years) and educational achievement at age 12. In an overview, Petrill and Wilkerson (2000) concluded that genetics and shared and non-shared environmental factors all influence intelligence and education, with genetics being important in the correlation between them, and non-shared environment being important in discrepancies between intelligence and educational attainments.

Whereas the correlations indicate that around 50% to 60% of the variance in GCSE [General Certificate of Secondary Education] examination points score can be statistically explained by the prior g [general intelligence] factor, by the same token a large proportion of the variance is not accounted for by g. Some of the remaining variance in GCSE scores will be measurement error, but some will be systematic. Thus, non-g factors have a substantial impact on educational attainment. These may include: school attendance and engagement; pupils' personality traits, motivation and effort; the extent of parental support; and the provision of appropriate learning experiences, teaching quality, school ethos, and structure among other possible factors (Petrides, Chamorro-Premuzic, Frederickson, & Furnham, 2005; Strand, 2003).

But Lynn already knows the pitfalls of his approach. Finland had the highest score in Europe on the 2006 PISA tests, and using his method leads to a calculated IQ of 107, yet he reports Finns' IQ as being just 97. Romanians' PISA score is near the very bottom of Europe, leading to an estimate of 85, though their measured IQ is in fact 94 according to Lynn, just three points lower than that of Finns. With discrepancies like that, there's absolutely no reason to trust his calculated IQs of around 100 and 90 for Northern and Southern Italians. Clearly, PISA scores are not a good substitute for IQ.

Then, to try to prove that disparities in intelligence are long-standing, and therefore genetically based, he uses literacy as another (questionable) proxy for IQ. But whereas for other correlates like stature and infant mortality he includes data from the past and present to show that the North-South gap has remained fairly stable, for literacy he only includes data from 1880, when it was extremely large (55% vs. 20%, on average). Obviously, he wants to hide the fact that the gap has been closing steadily since then, and by the 21st century, literacy among Italians under the age of sixty-five was 99.7% in the North and 99% in the South (Istat 2001).

Achievement


Lynn goes on to attempt to correlate his fake IQs with achievement. The primary measure he uses is per capita income, which is double in the North what it is in the South. His source is the Italian Statistical Office, but he should be aware that figures for the South's economic performance are greatly underestimated because the official statistics fail to take into account a large underground economy there, according to Burnett and Vaccara (1999):

But the third factor, somewhat alleviating the second, is the existence of a far vaster private sector than ever shows up in the economic statistics. The size of the lavoro nero sector and the black market in the South clearly exceeds that of any other EU region.... In Calabria, with its dire employment figures, 84 percent of the families own their own home. What such anomalies must mean is that real income in Calabria is far higher than what is "on the books." Many among the vast numbers of officially unemployed are, in fact, partly or fully employed. They are earning no social benefits, but they are earning the daily lire that keep their families afloat. [...] A very large part of the South's hidden labor is made up of entrepreneurs, sometimes also employing black labor, and existing themselves outside official recognition, taxation, protection, control, or counting. A recent analysis concludes that "there exists in several zones of the Mezzogiorno [Southern Italy] a whole fabric of small and very small businesses that escape every census, but that work and make profits, share among themselves a serious level of production, export to other regions [of Italy] and abroad." [...] This massive sector skews all the statistics. It means that the GDP for the Italian South (and for Italy as a whole) is far from accurate. And the unemployment figures do not reflect reality.

Then, with the same goal of establishing a pattern that extends far back in time, he also looks at historical achievement, citing Charles Murray's Human Accomplishment. But here again he plays fast and loose with the data. He adds up Murray's "significant figures" for Italy from 1400-1950 and divides them into "North", "Center" and "South" based on their origins. Almost all of them (187 out of 236) come from the "North". However, he explains that he uses the 42nd and 41st lines of latitude as borders, which are, respectively, just north of Rome and just north of Naples. So more than half of the country is put into the "North" category, while the "Center" gets flattened down and pushed into the territory of the "South" (click here to see what that looks like). This is a shameless and transparent ploy by Lynn to hugely inflate the number of significant figures from the "North" and reduce the number elsewhere in the country.

But perhaps even worse, he ignores the main finding of Murray's book, which is that achievement has been concentrated in just a few places, and Southern Italy is but one of many "low-achievement" areas throughout Europe, along with some of the northernmost regions in Italy:


As you can see — and as Murray points out in his book — the highest ranking region is Tuscany, which would normally be considered part of Central Italy. Ironically, Lynn doesn't even have PISA/IQ data for Tuscany, though its 1880 literacy rate isn't particularly high. So he's basically attributing the unique genius of that region to the brainpower of regions that have not produced the same level of genius.

Admixture


Finally, Lynn offers his "explanation" for the disparities in fake IQ, which, unsurprisingly, turns out to be admixture from the Middle East and North Africa, where (according to him) IQs are in the range of 80-84. As you might expect from someone with an agenda and little knowledge of genetics, he references a lot of old studies that use single or small numbers of loci and don't directly address the question of admixture. One of them has "Neolithic demic diffusion in Europe" in its title, yet he stupidly follows the citation with references to historical groups like Phoenicians and Arabs.

Recent genome-wide studies have been able to detect and quantify admixture like never before. Li et al. (2008), using more than 600,000 autosomal SNPs, identify seven global population clusters, including European, Middle Eastern and Central/South Asian. Contrary to Lynn's claims, it's actually the overachieving Tuscans who have a small amount of non-European admixture and not the underachieving Sardinians:


López Herráez et al. (2009) typed the same samples at close to 1 million SNPs and analyzed them in a Western Eurasian context, identifying a number of subclusters. This time, all of the European samples show some minor admixture. Among the Italians, Tuscany still has the most, and Sardinia has a bit too, but so does Lombardy (Bergamo), which is even farther north:


Conclusion


The bottom line is, we don't know the average IQs for different regions in Italy, which is why Richard Lynn had to resort to making them up. And while Southern Italians are likely to be a few points lower than Northern Italians — as the Irish and Scottish are a few points lower than the English — there's absolutely no reason to believe that North and South would be separated at their extremes by almost a full standard deviation. Lynn certainly hasn't proven anything of the kind with this ridiculous study, nor has he provided any valid explanations for such a disparity.

Updates


Since I wrote this article, a number of studies have been published that refute Lynn and confirm what I've said:


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Richard Lynn. "In Italy, north-south differences in IQ predict differences in income, education, infant mortality, stature, and literacy". Intelligence, 2010.

Southern Italy's Economy Underestimated

September 12, 2010

While it's true that poverty and unemployment are higher in Southern Italy than in the more industrialized North, the extent of these disparities has been greatly exaggerated because a large segment of the South's economy is underground and continually overlooked in official statistics. Two papers bring this fact to light.

But the third factor, somewhat alleviating the second, is the existence of a far vaster private sector than ever shows up in the economic statistics. The size of the lavoro nero sector and the black market in the South clearly exceeds that of any other EU region, a fact that can now be persuasively demonstrated. According to Italstat, the most reliable source of national economic statistics, "black" labor in the Mezzogiorno amounted to an even fifty percent of all "jobs" by the end of 1998. Six months later, Italstat raised its figure to 51 percent. The figure for the North was bad enough — 31.5 percent — but more in line with other Mediterranean EU countries. For any projection toward 2007, however, it is the trend that must be noted. Italstat found that the gap between North and South was growing continually wider. Indeed, when actual laborers were counted (rather than jobs), the South's percentage was double that of the North and Center.

These raw figures require a closer look, because one economist's analysis of Calabria found low pay, high unemployment, and a very high level of consumer spending. In 1994, the government insurance agency placed the number of business enterprises in Calabria at 23,758, while Istat, carrying out the 1996 census, found about 90,000 businesses in the same region. The economist Domenico Marino concluded, on the basis of 4,000 interviews in Calabria, that 75 percent of the Calabrian work force would refuse a fairly low-paying job, despite a very high official level of unemployment. In Calabria, with its dire employment figures, 84 percent of the families own their own home. What such anomalies must mean is that real income in Calabria is far higher than what is "on the books." Many among the vast numbers of officially unemployed are, in fact, partly or fully employed. They are earning no social benefits, but they are earning the daily lire that keep their families afloat.

[…]

A very large part of the South's hidden labor is made up of entrepreneurs, sometimes also employing black labor, and existing themselves outside official recognition, taxation, protection, control, or counting. A recent analysis concludes that "there exists in several zones of the Mezzogiorno a whole fabric of small and very small businesses that escape every census, but that work and make profits, share among themselves a serious level of production, export to other regions [of Italy] and abroad." A map of the South's submerged economy shows a series of ink blots in every region, "where work is done without any controls, safe from the tax collector but not safe from accidents and injuries, usually in violation of a number of laws [governing commercial outlets, working conditions, etc.], totally outside official cognizance."

Every year brings plans either to stamp out or to "regularize" the South's submerged economy. But a professor of political economy at the University of Naples warns to go slow: "if we observe these initiatives carefully the image of a Mezzogiorno that is forever the panhandler does not seem to be confirmed. What confronts us is a creeping vitality, almost a new frontier." According to Professor Meldolesi, the submerged economy is several times bigger than officially estimated.

[…]

In most cases, "black" workers suffer no risk from the State. Controls on black labor are few and not enforced. Yet they live dangerously. They work — sometimes doing heavy and dangerous work — with no social net, no pensions (other than the minimal social security that everybody gets), no other welfare assistance, no protection at the work place, and no control over labor conditions. The State is nowhere present in their lives, as either law-enforcer or protector.

This massive sector skews all the statistics. It means that the GDP for the Italian South (and for Italy as a whole) is far from accurate. And the unemployment figures do not reflect reality.

Burnett and Vaccara. "Looking to 2007: Italy Times Two". Center for Strategic & International Studies (CSIS), 1999.

As mentioned when discussing Figure 1 (see also Jones and Riddell, 1999), the definition of unemployment is unavoidably less than clear-cut. In Italy, as we discuss below, several types of temporary layoff, non-market employment, and 'activation' programs make up a gray area of individuals who are not really employed but (as is the case for ALMP participants in other countries) are not counted as unemployed.

Further, official employment statistics (though not, at least in principle, the survey-based ones) may be imprecise due to undeclared or 'black' employment pools. The shadow economy is important in Italy and, like in other European countries, its size trends up in time: different estimates suggest that shadow activity increased by some 10-15 percent of GDP in the 70s to some 30-40 percent in the 1990s. This upward trend parallels that of Italy's aggregate unemployment rates. Not surprisingly, and quite interestingly from the institutional perspective we lay out below, the incidence of the shadow economy varies importantly within Italy, again quite like unemployment. Regions with low productivity and high unemployment display significantly larger shares of unregistered activities and employment than the country averages. Boeri and Garibaldi (2002) offer a detailed account and analysis of this phenomenon. Figure 6, reproduced from that paper, plots the average shadow employment rate over 20 Italian regions, and shows that shadow employment varies between 10 percent in Piedmont (North-West) and more than 30 percent in Sicily (South). These estimates suggest that the proportion of irregular employment may be as high as 30-35 per cent in the South, around 20 per cent in the Centre and at one-digit level in the North-West and the North-East, the latter macro-region being the one with the lowest level of shadow activity. A portion of this variability may be accounted for by the various regions' heterogeneous production structure. However, it is large within industrial branches marked not only in agriculture, but also within industry, with the South displaying an incidence of shadow employment that is twice as high than in the rest of the country. There is no tendency over time to the narrowing of the regional differentials in the incidence of the shadow economy: in 1995 the South to Centre-North gap was roughly the same as 10 years earlier.

Bertola and Garibaldi. "The Structure and History of Italian Unemployment". CESifo Working Paper Series No. 907, 2003.