Measuring conjoint vulnerabilities in Italy: an asset

based approach

Adolfo Morrone adolfo.morrone@istat.it

La multidimensionalità della povertà: come la ricerca può supportare le politiche locali

Roma, 22 e 23 maggio 2012

Introduction

• Vulnerability is broader than economic insecurity.

• Refers to exposure to (material, physical, psychological) harm from one or more risks.

• Many definitions, measurement approaches for different risk contexts.

• Aim of project was to explore the usefulness of the “asset-based” approach to provide a common framework for the statistical measurement of vulnerable populations.

The asset based approach

• Focuses on the resources people can draw on to manage diverse risks.

• Ability to minimise well-being losses after a crisis (e.g. job loss, ill health) depends on people’s assets.

“A person (or household) is vulnerable to future loss of well-being below some socially-accepted norms if he

or she lacks (or is strongly disadvantaged in the distribution of) assets which are crucial for resilience

to risks.”

The asset based approach (2)

• Assets considered in a broad sense.• Tangible and intangible stocks of wealth used

by households/individuals to generate well-being:– Economic capital– Human capital– Social capital– Collective assets

The role of asset in reducing vulnerability

• Assets are highly interrelated– High levels of one type are likely to

reinforce other types.– But substitutability of different types of

assets in the asset portfolio is important.• Assets reduce vulnerability through:1. Risk reduction2. Risk mitigation 3. Coping

Seven indicators available in EU-SILC 2009

Economic capital•Proportion of the population who do not own their own home• Proportion of the population which cannot afford an unexpectd

expense (subjective liquid asset poverty)

Human capital• Proportion of the population with less than ISCED 3 attainment in

education • Proportion of adults facing limitations in daily activities due to

health issues

Social capital• People never going out with friends

Collective assets• Proportion of people reporting unmet medical care need• Proportion of people excluded from 2 essential services

Equal weights

0

5

10

15

20

25

30

35

0 1 2 3 4 5 6-7

North-westNorth-eastCenterSouth

Distribution of vulnerabilitiesDistribution of vulnerabilities by geographical areas. People 25-64 years old. EU-Silc 2009

Number of vulnerabilities

Cutoff (k)=3

Great differences in the percentage of vulnerable peoplePercentage of vulnerable people (k=3) by region. People 25-64 years old. EU-Silc 2009

0

5

10

15

20

25

30

35

40

45

Three

Italy

At risk of poverty

The intensity is higly correlated with the proportion of vulnerable people

Distribution of the MVI

Risk of poverty increses with MVI

Equal MVI different distribution of vulnerabilities

MVI=22,1A=53,6H=41,2

18,3 14,6

19,921,2

21,2 22,1

7,7 9,1

16,2 14,7

3,7 6,9

13,0 11,2

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Campania Sicilia

Excluded from twoessential services

Reporting unmet medicalcare need

Never going out withfriends

Limitations in dailyactivities due to healthissues

Less than ISCED 3attainment in education

Subjective liquid assetpoverty

People who do not owntheir own home

MVI=22,3A=54,7H=40,8

Factors influencing vulnerability

1,002,87

1,002,50

4,31

1,001,19

1,001,11

1,711,76

1,001,21

1,752,52

3,734,11

4,85

1,001,33

1,83

1,001,08

1,272,14

0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 4,5 5,0

NoSi

RISCHIO POVERTAItalian

EUOther

CITIZENSHIPFemale

MaleSEX

Never marriedMarriedWidow

Separeted/divorcedMARITAL STATUS

StudentSelf-employed

EmployeeIn retirement

Fulfilling domestic tasksUnemployed

OtherEMPLOYEMENT STATUS

25-2930-4445-64

AGENorth westNorth East

CentreSouth

GEOGRAPHICAL AREA

Logit model on the probability of experiencing 3 or morevulnerabilities (H)

Thank you for the attention