Giuliana Parodi

Disability in Italian households: income, poverty and labour market participation

This article studies the economic effects of disabled members on Italian households, with the aim of identifying a suitable target group for welfare policies. Survey of Households Income and Wealth data for the year 2000 is used. Preliminary results show significant differences in levels of income and poverty diffusion to the detriment of households with disabled members. We propose an exogenous explanation: the replacement ratio between disability benefits and expected labour income shows that disability benefits do not compensate the potential incomes of the disabled person and of the possible carer, except in households with severe socioeconomic disadvantages. We also propose an endogenous explanation: applying a logit model we show that the labour market participation of the possible carer is reduced in households with disabled persons. In order to increase the income of the households with disabled members, policy recommendations include the provision of care services and structural policies to improve employment, income and educational opportunities for households at greatest disadvantage.

Civilian Disability Pensions as an Antipoverty Policy Instrument? A Spatial Analysis of Italian Provinces, 2003–2005

The purpose of this paper is to investigate whether civilian disability pensions have been used as an antipoverty measure in Italy. We applied a two-step analysis to Italian provincial data for the years 2003–2005. We implemented a classic panel analysis, followed by a two-step GMM (Generalised Method of Moments) analysis in which we introduced the spatial variable. The analysis shows that the number of civilian disability pensions is not related to disabling disease, but it is related 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. The spatial variable allows us to take into account the local dimension and the possible social, historical, and cultural links among provinces that go beyond administrative boundaries. In discussing the results, we stress that the figures 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. We propose that there is room to interpret the use of civilian disability pensions as an antipoverty policy instrument in areas characterised 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.

The Dynamics of Disability and Labour Force Participation in Italy

This paper investigates the effect of disability on labour force participation in Italy. Using information on limitations to daily activities, we apply a dynamic probit model accounting for state dependence and endogenous initial conditions to the longitudinal section of the 2004–2007 IT-SILC data. We find a significant and negative impact on current disability status that increases in seriousness (from 6.5 % to 10.7 %) in the case of labour force participation. Additionally, past disability status decreases the probability of current employment. Moreover, we find evidence that labour market participation is negatively affected by persistence in disability status (from 12.4 % to 28.1 % according to the seriousness of the limitations) and by the onset of disability (from 6.9 % to 11.3 %). Furthermore, we find that observable factors have a standard effect on labour market participation. Finally, we find evidence of true state dependence and endogenous initial conditions.

AN ANAL Y SIS OF DISABLED PEOPLE AND THE LABOR MARKET IN MEXICO

The aim of this work is to analyze the situation of disabled people in the labor market in Mexico, taking into account socioeconomic variables and the spatial dimension. The results of our analysis provide guidelines for actions geared at improving the inclusion of disabled people in the labor market, and, as a consequence, in society. We apply cluster analysis to thirty-two Mexican federal states using data of the XII Censo de Población y Vivienda 2000; this allows us to identify spatial correlation processes and therefore spatial clusters. A dual structure emerges in the distribution of disabled people in the Mexican labor market, showing that effective economic policies to encourage the inclusion of disabled people into the labor market must take into account the socioeconomic diversity of different geographical areas.

Part-time Work and Wage Penalty Trend among Italian Women

This paper studies the evolution of the full-time/part-time wage differential among Italian women for the period 1993-2004. A generalized Heckman selection model is applied to estimate the wage equations, controlling for endogeneity in the second step. An observed part-time wage penalty is found. However, using the Oaxaca decomposition technique we actually find a (decreasing) wage premium for part-timers. This can be explained either in terms of over-payment of given characteristics or in terms of the values of the discrimination and the selection components. The individuals’ choice concerning their own type of contract appears to be important in determining the sign and the extent of the wage gap.