Civilian Disability Pensions as an Antipoverty Policy Instrument? A Spatial Analysis of Italian Provinces, 2003–2005
In: Social Exclusion. Short and Long Term Causes and Consequences
AbstractThe purpose of this paper is to investigate whether civilian disability pensions have been used as an antipoverty measure in Italy. We applied a classic panel analysis, followed by a two step GMM (Generalized Method of Moments) analysis in which we introduced the spatial variable, to Italian provincial data for the years 2003-2005. The analysis shows that the number of civilian disability pensions is not related to disability diseases, but to the unemployment rate in some areas, and to the rate of poverty everywhere. These results robustly hold when the spatially lagged dependent variable is introduced among the regressors. In discussing yjem, we stress that they reflect the number of civilian disability pensions granted, not those requested. Moreover, the national legislation on the attribution of civilian disability pensions is administered locally; therefore its application may reflect degrees of discretionary interpretation. Hence there is room to interpret civilian disability pensions as an antipoverty policy instrument in areas characterized by economic difficulties. However, we suggest that civilian disability pensions are particularly unsuited to play the role of an assistance policy instrument; once granted, they are seldom withdrawn despite possible changes in the financial situation of the recipient.
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This item is provided by AIEL - Associazione Italiana Economisti del Lavoro in its series AIEL Series in Labour Economics with number 05-08.
Disability; Pensions; Models with Panel Data; Spatial Models.;
Find related papers by JEL classification:
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
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