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The Dynamics of Disability and Labour Force Participation in Italy

In: Disadvantaged Workers

Author

Listed:
  • Massimiliano Agovino

    (Università “G. d’Annunzio” di Chieti-Pescara)

  • Giuliana Parodi

    (Università “G. d’Annunzio” di Chieti-Pescara)

  • Dario Sciulli

    (Università “G. d’Annunzio” di Chieti-Pescara)

Abstract

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.

Suggested Citation

  • Massimiliano Agovino & Giuliana Parodi & Dario Sciulli, 2014. "The Dynamics of Disability and Labour Force Participation in Italy," AIEL Series in Labour Economics, in: Miguel Ángel Malo & Dario Sciulli (ed.), Disadvantaged Workers, edition 127, chapter 0, pages 31-48, Springer.
    • Handle: RePEc:spr:aiechp:978-3-319-04376-0_3
    DOI: 10.1007/978-3-319-04376-0_3
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    Cited by:

    1. Chiara Mussida & Dario Sciulli, 2015. "Direct and indirect effects of disability on employment probabilities: a comparative analysis," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1507, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    2. Chiara Mussida & Dario Sciulli, 2016. "Disability and employment across Central and Eastern European Countries," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-24, December.
    3. 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.

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