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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.

Suggested Citation

  • Parodi, Giuliana & Sciulli, Dario, 2012. "Disability and Social Exclusion Dynamics in Italian Households," MPRA Paper 42445, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:42445
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    File URL: https://mpra.ub.uni-muenchen.de/42445/1/MPRA_paper_42445.pdf
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. 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.
    4. 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, March.
    5. 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 60-67, March.
    6. 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, September.
    7. Ambra Poggi, 2007. "Does persistence of social exclusion exist in Spain?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, pages 53-72.
    8. 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.
    9. 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).
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    14. 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, March.
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    Citations

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    Cited by:

    1. 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.
    2. Fumarco, Luca, 2015. "Disability Discrimination in the Rental Housing Market – A Field Experiment on Blind Tenants," MPRA Paper 63899, University Library of Munich, Germany.
    3. repec:spr:qualqt:v:51:y:2017:i:4:d:10.1007_s11135-016-0347-9 is not listed on IDEAS
    4. Massimiliano Agovino & Maria Ferrara, 2017. "Can civilian disability pensions overcome the poverty issue? A DSGE analysis for Italian data," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(4), pages 1469-1491, July.
    5. Luca Fumarco, 2017. "Disability Discrimination in the Italian Rental Housing Market: A Field Experiment with Blind Tenants," Land Economics, University of Wisconsin Press, vol. 93(4), pages 567-584.
    6. 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.

    More about this item

    Keywords

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

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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