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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

Author

Listed:
  • Massimiliano Agovino

    (Università “G. d'Annunzio” di Chieti-Pescara)

  • Giuliana Parodi

    (Università “G. d'Annunzio” di Chieti-Pescara)

Abstract

The 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pensions are particularly unsuited to play the role of an assistance policy instrument; once granted, they are seldom withdrawn despite possible changes in the financial situation of the recipient.

Suggested Citation

  • Massimiliano Agovino & Giuliana Parodi, 2012. "Civilian Disability Pensions as an Antipoverty Policy Instrument? A Spatial Analysis of Italian Provinces, 2003–2005," AIEL Series in Labour Economics,in: Giuliana Parodi & Dario Sciulli (ed.), Social Exclusion. Short and Long Term Causes and Consequences, edition 1, chapter 8, pages 149-167 AIEL - Associazione Italiana Economisti del Lavoro.
  • Handle: RePEc:ail:chapts:05-08
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Agovino, Massimiliano & Ferrara, Maria, 2015. "Can civilian disability pensions overcome the poverty issue? A DSGE analysis for Italian data," MPRA Paper 65851, University Library of Munich, Germany, revised Jul 2015.
    2. Agovino, Massimiliano & Ferrara, Maria, 2015. "Disabilità e povertà: il ruolo delle pensioni di invalidità civile. Un'analisi DSGE per i dati italiani
      [Disability and poverty: the role of civilian disability pensions. A DSGE analysis for Italia
      ," MPRA Paper 65616, University Library of Munich, Germany.
    3. Massimiliano Agovino & Agnese Rapposelli, 2017. "Macroeconomic impact of flexicurity on the integration of people with disabilities into the labour market. A two-regime spatial autoregressive analysis," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(1), pages 307-334, January.
    4. repec:spr:qualqt:v:51:y:2017:i:4:d:10.1007_s11135-016-0347-9 is not listed on IDEAS
    5. Parodi, Giuliana & Sciulli, Dario, 2012. "Disability and Social Exclusion Dynamics in Italian Households," MPRA Paper 42445, University Library of Munich, Germany.

    More about this item

    Keywords

    Disability; Pensions; Models with Panel Data; Spatial Models.;

    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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