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

C. Delia Dávila Quintana and Miguel Malo ()

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2012, vol. 41, issue 4, 350-359

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.

Keywords: Disabilities; Equivalence scale; Poverty persistence; Social policy (search for similar items in EconPapers)
JEL-codes: C23 D31 I32 J14 (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:eee:soceco:v:41:y:2012:i:4:p:350-359

DOI: 10.1016/j.socec.2012.04.004

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