Advertisement

Disability and Social Exclusion in Italian Households

  • Giuliana Parodi
  • Dario SciulliEmail author
Original Research

Abstract

This paper investigates how the presence of disabled member(s) affects the household risk of being socially excluded in Italy. By using a dynamic probit model with correlated random effects and accounting for endogenous initial conditions, we find that the presence of severely disabled member(s) increases the probability of being socially excluded by 2.5%. Importantly, we find that genuine state dependence is greater, by about 20% in relative terms, for households with disabled member(s) than their counterparts, indicating that the former experience greater difficulties in escaping from social exclusion. This suggests that policies aimed at preventing social exclusion would be particularly effective for households with disabled member(s). All these findings hold when accounting for endogeneity of disability and social exclusion because of possible feedback effects. Finally, our estimates confirm that in Italy low education, living in the South and the presence of children increase the probability of a household being socially excluded.

Keywords

Disability Social exclusion Household Genuine state dependence Feedback effects Correlated random effects 

Notes

Acknowledgements

This paper is part of the research activities carried out by the Pescara Unit within the PRIN research project “Measuring human development and capabilities in Italy: methodological and empirical issues” (prot. 2009NM89S5_004), financed by the Italian Ministry of Education, University and Research. We wish to thank the participants to the 2012 AIEL conference and of the 2013 EALE conference for most useful comments and suggestions. The usual disclaimers apply. All errors and omissions are those of the authors.

References

  1. Agovino, M., & Parodi, G. (2012). Civilian disability pensions as an antipoverty policy instrument? A spatial analysis of Italian Provinces. In G. Parodi & D. Sciulli (Eds.), Social exclusion (pp. 2003–2005). Short and long term causes and consequences: AIEL Series in Labour Economics, Verlag Springer, Heidelberg.Google Scholar
  2. Agovino, M., Parodi, G., & Sciulli, D. (2014). The dynamics of disability and labour force participation in Italy. In M. Á. Malo & D. Sciulli (Eds.), Disadvantaged workers. Heidelberg: AIEL Series in Labour Economics, Verlag Springer.Google Scholar
  3. Atkinson, A. B. (1999). On the poverty measurement. Econometrica, 55, 749–764.CrossRefGoogle Scholar
  4. Ayllón, S. (2013). Understanding poverty persistence in Spain. SERIES Journal of the Spanish Economic Association, 42(2), 201–233.Google Scholar
  5. Ayllón, S., & Gabos, A. (2017). The interrelationships between the Europe 2020 poverty and social exclusion indicators. Social Indicators Research, 130, 1025–1049.CrossRefGoogle Scholar
  6. Biewen, M. (2009). Measuring state dependence in individual poverty status: Are there feedback effects to employment decisions and household composition? Journal of Applied Econometrics, 24(7), 1095–1116.CrossRefGoogle Scholar
  7. Biewen, M. (2014). Poverty persistence and poverty dynamics. IZA World of Labor, 103, 1–10.Google Scholar
  8. Brandolini, A., & D’Alessio, G. (1998). Measuring well-being in the functioning space. Bank of Italy, Rome: Mimeo.Google Scholar
  9. Burchardt, T., LeGrande, J., & Piachaud, D. (2002). Degrees of exclusion: Developing a dynamic multidimensional measure. In: J. Hills, J. Le Grand, & D. Pichaud (Eds.), Understanding social exclusion, Chap. 3. Oxford: Oxford University Press.Google Scholar
  10. Cappellari, L., & Jenkins, S. (2002). Who stays poor? Who becomes poor? Evidence from the British household panel survey. Economic Journal, 112, 60–67.CrossRefGoogle Scholar
  11. Davila-Quintana, C. D., & Malo, M. A. (2012). Poverty dynamics and disability: An empirical exercise using the European Community Household Panel. Journal of Socio-Economics, 41, 350–359.CrossRefGoogle Scholar
  12. Devicienti, F., & Poggi, A. (2011). Poverty and social exclusion: Two sides of the same coin or dynamically interrelated processes? Applied Economics, 43(25), 3549–3571.CrossRefGoogle Scholar
  13. Eurostat. (2012). Population and social conditions. Statistics in Focus, 9/2012.Google Scholar
  14. Fremstad, S. (2009). Half in ten: Why taking disability into account is essential to reducing income poverty and expanding economic inclusion. CEPR Reports and Issue Briefs, n. 30.Google Scholar
  15. Gannon, B. (2005). A dynamic analysis of disability and labour force participation in Ireland 1995–2000. Health Economics, 14(9), 925–938.CrossRefGoogle Scholar
  16. Gannon, B., & Nolan, T. N. (2007). The impact of disability transitions on social inclusion. Social Science and Medicine, 64(7), 1425–1437.CrossRefGoogle Scholar
  17. Heckman, J. J. (1981). The incidental parameters problem and the problem of initial conditions in estimating a discrete time-discrete data stochastic process. In C. F. Manski & D. McFadden (Eds.), Structural analysis of discrete data with econometric applications (pp. 179–195). Cambridge, MA: MIT Press.Google Scholar
  18. Jenkins, S. P., & Van Kerm, P. (2014). The relationship between EU indicators of persistent and current poverty. Social Indicators Research, 116(2), 611–638.CrossRefGoogle Scholar
  19. Kim, K. M., et al. (2016). Social exclusion of people with disabilities in Korea. Social Indicators Research, 129, 761–773.CrossRefGoogle Scholar
  20. Lee, P., & Murie, A. (1999). Literature review of social exclusion. Edinburgh: Scottish Office Central Research Unit, Stationery Office.Google Scholar
  21. Mitra, S. (2008). The recent decline in the employment of person with disabilities in South Africa 1998–2006. South African Journal of Economics, 76(3), 480–492.CrossRefGoogle Scholar
  22. Mundlak, Y. (1978). On the pooling of time-series and cross-section data. Econometrica, 46(1), 69–85.CrossRefGoogle Scholar
  23. Mussida, C., & Sciulli D. (2018). Does the presence of a disabled person in the household affect the employment probabilities of cohabiting women? Evidence from Italy, France and the UK (Unpublished manuscript).Google Scholar
  24. Oguzoglu, U. (2010). Dynamics of work limitation and work in Australia. Health Economics, 19(6), 656–669.Google Scholar
  25. Parodi, G., & Sciulli, D. (2008). Disability in Italian households: Income, poverty and labour market participation. Applied Economics, 40(20), 2615–2630.CrossRefGoogle Scholar
  26. Parodi, G., & Sciulli, D. (2012). Disability and low income persistence in Italian households. International Journal of Manpower, 33(1), 9–26.CrossRefGoogle Scholar
  27. Poggi, A. (2007). Does persistence of social exclusion exist in Spain? Journal of Economic Inequality, 5(1), 53–72.CrossRefGoogle Scholar
  28. Roodman, D. (2011). Fitting fully observed recursive mixed-process models with cmp. Stata Journal, 11(2), 159–206.CrossRefGoogle Scholar
  29. Shahtamaseb, S., Emerson, E., Berridge, D., & Lancaster, G. (2011). Child disability and the dynamics of family poverty, hardship and financial strain: Evidence from the UK. Journal of Social Policy, 40, 653–673.CrossRefGoogle Scholar
  30. She, P., & Livermore, G. A. (2007). Material hardship, poverty, and disability among working-age adults. Social Science Quarterly, 88(4), 970–981.CrossRefGoogle Scholar
  31. She, P., & Livermore, G. A. (2009). Long-term poverty and disability among working-age adults. Journal of Disability Policy Studies, 19(4), 244–268.CrossRefGoogle Scholar
  32. Solipaca A., Di Nicola F., Mancini F., & Rosano A. (2010). Il gap di reddito delle persone con disabilità: un’analisi regionale. Rapporto Osservasalute, Stato di Salute e Qualità dell’Assistenza nelle Regioni italiane.Google Scholar
  33. Stevens, A. H. (1999). Climbing out of poverty, falling back. Journal of Human Resources, 34(3), 557–588.CrossRefGoogle Scholar
  34. Tobias, E. I., & Mukhopadhyay, S. (2017). Disability and social exclusion: Experiences of individuals with visual impairments in the Oshikoto and Oshana regions of Namibia. Psychology and Developing Societies, 29(1), 22–43.CrossRefGoogle Scholar
  35. United Nations. (2007). Literature review on social exclusion in the ESCWA Region. Economic and Social Commission for Western ASIA (ESCWA), New York, 07-0346.Google Scholar
  36. Whelan, C. T., Layte, R., & Maitre, B. (2003). Persistent income poverty and deprivation in the European Union: An analysis of the first three waves of the ECHP. Journal of Social Policy, 32(1), 1–18.CrossRefGoogle Scholar
  37. WHO. (2001). International classification of impairments, disabilities, and handicaps. Geneva: World Health Organization.Google Scholar
  38. Wooldridge, J. (2005). The initial condition problem in dynamic, non-linear panel data models with unobserved heterogeneity. Journal of Applied Econometrics, 20, 39–54.CrossRefGoogle Scholar

Copyright information

© Springer Nature B.V. 2019

Authors and Affiliations

  1. 1.Università di Chieti-PescaraPescaraItaly

Personalised recommendations