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Disability and Social Exclusion Dynamics in Italian Households

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  • Parodi, Giuliana
  • Sciulli, Dario

Abstract

This paper investigates the dynamics of social exclusion comparing Italian households with and without disabled people, adopting the EU definition of social exclusion and the social model approach to the disability. The analysis applies a dynamic probit model accounting for true state dependence, unobserved heterogeneity and endogenous initial conditions to the 2004-2007 IT-SILC data. Our findings indicate that the incidence of social exclusion for households with disable people is about double with respect to other households, and this disadvantage is especially due to exclusion in the work intensity and material deprivation dimensions. This suggests that analysis based just on income perspective could be insufficient to provide a proper picture of reality. Second, households with disabled people are more likely to persist in social exclusion than other households. Third, persistence in social exclusion for households with disabled people is more likely to be explained by unobserved (and observed) heterogeneity, than by true state dependence. Fourth, households with disabled members experience a stronger severity of social exclusion, explained more in terms of structural factors than in terms of state dependence. Our findings suggest that households with disabled people could benefit more than other households from long-term policies aimed at removing structural factors determining a social exclusion history. The severity of social exclusion, that is stronger for households with disabled members, conforms to the same pattern.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 42445.

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Date of creation: 04 Nov 2012
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Handle: RePEc:pra:mprapa:42445

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Keywords: social exclusion; persistence; disability; dynamic probit model; initial conditions;

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  1. Giuliana Parodi & Dario Sciulli, 2008. "Disability in Italian households: income, poverty and labour market participation," Applied Economics, Taylor & Francis Journals, vol. 40(20), pages 2615-2630.
  2. Brian Nolan & Christopher T. Whelan, 2010. "Using non-monetary deprivation indicators to analyze poverty and social exclusion: Lessons from Europe?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(2), pages 305-325.
  3. Asghar Zaidi & Tania Burchardt, 2005. "Comparing Incomes When Needs Differ: Equivalization For The Extra Costs Of Disability In The U.K," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(1), pages 89-114, 03.
  4. Sophie Mitra, 2008. "The Recent Decline In The Employment Of Persons With Disabilities In South Africa, 1998-2006," South African Journal of Economics, Economic Society of South Africa, vol. 76(3), pages 480-492, 09.
  5. Ann Huff Stevens, 1999. "Climbing out of Poverty, Falling Back in: Measuring the Persistence of Poverty Over Multiple Spells," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 557-588.
  6. Jeffrey M. Wooldridge, 2005. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 39-54.
  7. Anna Giraldo & Enrico Rettore & Ugo Trivellato, 2002. "The persistence of poverty: true state dependence or unobserved heterogeneity? Some evidence from the Italian Survey on Household Income and Wealth," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 B2-1, International Conferences on Panel Data.
  8. Ambra Poggi, 2003. "Does persistence of social exclusion exist in Spain?," Working Papers wpdea0308, Department of Applied Economics at Universitat Autonoma of Barcelona.
  9. Giuliana Parodi & Dario Sciulli, 2012. "Disability and low income persistence in Italian households," International Journal of Manpower, Emerald Group Publishing, vol. 33(1), pages 9-26, June.
  10. Paul Contoyannis & Andrew M. Jones & Nigel Rice, 2004. "The dynamics of health in the British Household Panel Survey," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(4), pages 473-503.
  11. Shawn Fremstad, 2009. "Half in Ten: Why Taking Disability into Account is Essential to Reducing Income Poverty and Expanding Economic Inclusion," CEPR Reports and Issue Briefs 2009-30, Center for Economic and Policy Research (CEPR).
  12. Dávila Quintana, C. Delia & Malo, Miguel A., 2012. "Poverty dynamics and disability: An empirical exercise using the European community household panel," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(4), pages 350-359.
  13. Lorenzo Cappellari & Stephen P. Jemkins, 2002. "Who Stays Poor? Who Becomes Poor? Evidence from the British Household Panel Survey," Economic Journal, Royal Economic Society, vol. 112(478), pages C60-C67, March.
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