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Disability and Low Income Persistence in Italian Households

  • Parodi, Giuliana
  • Sciulli, Dario

We apply dynamic probit models allowing for unobserved heterogeneity and endogenous initial conditions to IT-SILC data to investigate the low income persistence of households with disabled members. We find that their probability of being in a low income state is higher when compared with households without disabled members. In both cases household head’s characteristics, as employment status and education, contribute to determine low income positions. Our results also support the hypothesis of endogenous initial conditions. Both unobserved heterogeneity and state dependence are important to determine low income positions. Our findings suggest that a structural intervention geared at lifting households out of low income in future requires to get them out of low income at present. Moreover, preventing rather than rescuing actions are preferable.

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File URL: http://mpra.ub.uni-muenchen.de/28303/1/MPRA_paper_28303.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 28303.

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Date of creation: Sep 2010
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Handle: RePEc:pra:mprapa:28303
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  1. Ambra Poggi, 2003. "Does persistence of social exclusion exist in Spain?," Working Papers wpdea0308, Department of Applied Economics at Universitat Autonoma of Barcelona.
  2. Stephen P. Jenkins, 2000. "Modelling household income dynamics," Journal of Population Economics, Springer, vol. 13(4), pages 529-567.
  3. 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.
  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. 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).
  6. Cappellari, Lorenzo & Jenkins, Stephen P., 2002. "Modelling low income transitions," ISER Working Paper Series 2002-08, Institute for Social and Economic Research.
  7. repec:mpr:mprres:6179 is not listed on IDEAS
  8. 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.
  9. 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.
  10. 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.
  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. Wallace K. C. Mok & Bruce D. Meyer & Kerwin Kofi Charles & Alexandra C. Achen, 2008. "A Note on "The Longitudinal Structure of Earnings Losses among Work-Limited Disabled Workers"," Journal of Human Resources, University of Wisconsin Press, vol. 43(3), pages 721-728.
  13. 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.
  14. 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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