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Poverty dynamics and disability: An empirical exercise using the European community household panel

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  • Dávila Quintana, C. Delia
  • Malo, Miguel A.

Abstract

In this article, we analyze the influence of being disabled on poverty dynamics. We present results adjusting the modified OECD equivalence scale by the number of adults with severe disabilities in the household and calculate poverty rates with this disability-adjusted scale. In addition we address the problem of incidental parameters in econometric models for the probability of being poor and separate the effects of being disabled on poverty that are short and long-term. The results show that the long-term (‘persistence’) effect is three times the short-term (‘true state dependence’) effect, which has significant social policy implications.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:soceco:v:41:y:2012:i:4:p:350-359
    DOI: 10.1016/j.socec.2012.04.004
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    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. Derek Asuman & Charles Godfred Ackah & Frank Agyire-Tettey, 2021. "Disability and Household Welfare in Ghana: Costs and Correlates," Journal of Family and Economic Issues, Springer, vol. 42(4), pages 633-649, December.
    3. Giuliana Parodi & Dario Sciulli, 2019. "Disability and Social Exclusion in Italian Households," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(2), pages 767-784, July.
    4. Giuliana Parodi & Dario Sciulli, 2012. "Disability and low income persistence in Italian households," International Journal of Manpower, Emerald Group Publishing Limited, vol. 33(1), pages 9-26, March.
    5. Mussida, Chiara & Sciulli, Dario, 2023. "The evolution of income distribution and disability in Europe," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 29-38.
    6. Ahmed Ramadan Shokry Shahat & Giulia Greco, 2021. "The Economic Costs of Childhood Disability: A Literature Review," IJERPH, MDPI, vol. 18(7), pages 1-25, March.
    7. Chiara Mussida & Dario Sciulli, 2024. "Poverty, work intensity, and disability: evidence from European countries," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 25(9), pages 1605-1624, December.
    8. Leonardo Becchetti & Fabio Pisani, 2021. "When Money Matters More: Long‐Term Illness and the Income/Life Satisfaction Slope," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(3), pages 616-638, September.
    9. Massimiliano Agovino & Maria Ferrara, 2022. "Disabilit?: diseguaglianza sociale ed economica. Un?analisi empirica e teorica," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2022(1), pages 11-42.
    10. Sean Kiely & Dorothee Buehler & Ute Rink & Kristin Kiesel, 2023. "The effects of disability on households' economic livelihoods and poverty in Vietnam," TVSEP Working Papers wp-035, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.
    11. Parodi, Giuliana & Sciulli, Dario, 2012. "Disability and Social Exclusion Dynamics in Italian Households," MPRA Paper 42445, University Library of Munich, Germany.
    12. Ke-Mei Chen & Te-Mu Wang, 2015. "Determinants of Poverty Status in Taiwan: A Multilevel Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 123(2), pages 371-389, September.
    13. 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.
    14. Massimiliano Agovino & Antonio Garofalo & Katia Marchesano & Pier Luigi Sacco, 2023. "Unmet needs of tourists with disability: The role of public intervention," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2023(2), pages 171-194.

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    More about this item

    Keywords

    Disabilities; Equivalence scale; Poverty persistence; Social policy;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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