Disability and material deprivation: A profile of disadvantage in Italy

We provide an analysis of material deprivation in Italy using a dynamic correlated random effects probit model with endogenous initial conditions and highlighting the role of disability. We examine the two alternative indicators, one of material deprivation and on of material and social deprivation, and we offer a subgroup analysis. Our results indicate the presence of true state dependence for both types of deprivation. Nevertheless, the trapping effect associated with material deprivation increases faster when compared to that associated with material and social deprivation, possibly suggesting that the social dimension tends to mitigate the trap effect of material deprivation. Disability tends to worsen the living conditions of households already disadvantaged in Italian society, namely households with poorly educated, older and female heads, as well as singles and households with low work intensity. This is especially true in cases where an individual with severe disability lives in the household.