Does disability discourage? An empirical analysis of the disabled labour force in Italy

This paper is an empirical study on the work opportunities of people with disability using Italian data collected through a survey carried out by ISTAT in 2004. Our analysis is guided by the conceptual framework of the Capability Approach and investigates the role of conversion factors in the ability to be employed and the type of employment. We first use a simple probit for labour force participation and then a sequential logit for the outcomes of participation as well as employment status. In all variants we find that chronic illness is a stronger deterrent for labour force participation than disability. Women are more discouraged by disability compared to men. For the disabled, intellectual disability is the strongest barrier as can be expected and hearing the least influential. In a sequential decision-making process, one finds that disability affects both labour force participation decision and the ability to be employed but not so much the choice between part time and full time.