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Disability and low income persistence in Italian households

  • Giuliana Parodi
  • Dario Sciulli

Purpose – The purpose of this paper is to investigate the determinants of the probability of low income for households with disabled members in Italy, over the period 2004-2007, with special focus on the role of persistence. Design/methodology/approach – Households with disabled members are compared with those without disabled members, and those with disabled members temporary limited. Alternative definitions of disability are considered. The probability of low income is estimated adopting dynamic probit models accounting for unobserved heterogeneity, state dependence and endogenous initial conditions. Findings – Evidence is found of significant true state dependence for households with disabled members. However, true state dependence does not significantly differ from that of other households. The probability of low income for households with disabled members is also determined by some structural variables, such as employment of disabled individuals, living in the South, household's partner employment and household size. Practical implications – In the short run, money transfer is effective to lift households with disabled members from low income and to prevent the risk of low income in the future. Structural policies are possibly relevant in reducing the long-term risk of low income. These include interventions to favour employment of disabled members and development of caring services for disabled members to free family members for outside work. Originality/value – Not much is known about how disability affects the conditions of households with disabled members. The paper contributes to this literature with a novel analysis of low income persistence, providing some policy suggestions.

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Article provided by Emerald Group Publishing in its journal International Journal of Manpower.

Volume (Year): 33 (2012)
Issue (Month): 1 (June)
Pages: 9-26

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Handle: RePEc:eme:ijmpps:v:33:y:2012:i:1:p:9-26
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  4. 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.
  5. Miguel Angel Malo & Fernando Muñoz-Bullón, 2006. "Employment promotion measures and the quality of the job match for persons with disabilities," Hacienda Pública Española, IEF, vol. 179(4), pages 79-111, September.
  6. 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).
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  9. 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.
  10. 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.
  11. Peter J. Sloane & Melanie K. Jones, 2012. "Disability and Social Exclusion," AIEL Series in Labour Economics, in: Giuliana Parodi & Dario Sciulli (ed.), Social Exclusion. Short and Long Term Causes and Consequences, edition 1, chapter 7, pages 127-148 AIEL - Associazione Italiana Economisti del Lavoro.
  12. Ambra Poggi, 2007. "Does persistence of social exclusion exist in Spain?," Journal of Economic Inequality, Springer, vol. 5(1), pages 53-72, April.
  13. 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.
  14. Tania Burchardt & Asghar Zaidi, 2003. "Comparing incomes when needs differ: Equivalisation for the extra costs of disability in the UK," CASE Papers case64, Centre for Analysis of Social Exclusion, LSE.
  15. 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.
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