Over-Indebtedness in Italy: How Widespread and Persistent Is It?

Iezzi, Stefano

doi:10.2139/ssrn.2772485

Cited by 9 publications

(3 citation statements)

References 21 publications

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“…These results are consistent with the findings from previous research using the DSTI as a measure of over-indebtedness. Self-employed households are generally more likely to be over-indebted compared to those in which the head is a paid employee (D'Alessio & Iezzi, 2016;Du Caju et al, 2016). Moreover, Yilmazer and DeVaney (2005) confirm that self-employment has significant effects on the debt ratios but only for other types of credit (other than mortgage, credit cards, and instalments).…”

Section: Resultsmentioning

confidence: 99%

Self-employment and over-indebtedness in Poland: Modelling income and debt repayments distribution

Wałęga¹,

Wałęga²

2021

EBER

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The objective of the article is to assess financial situation and debt repayments in households of self-employed individuals and compare them to these of other types of households. The article aims to identify the determinants of over-indebtedness. Research Design & Methods:The study focuses on households of self-employed. The results are based on a nationwide CATI survey conducted among 1107 Polish indebted households. Theoretical models of the income distribution (log-logistic, Burr III) and the power-exponential model were used to achieve the research goals. Findings: The economic status of indebted households differentiates income and debt repayments distributions. Self-employed households have a better financial situation and greater inequalities than households of the paid employees and individuals sustaining themselves from other sources of income. The debt repayments of entrepreneurs are higher than in households of paid employees but lower than in other groups of households. The determinants of over-indebtedness are essentially similar regardless of the work status, but the impact of income, number of loans, and debt type on over-indebtedness is greater for self-employed households. Implications & Recommendations:The results on the debt repayments distribution and determinants of overindebtedness may be helpful in creating regulations that preventing household bankruptcies and policies aimed at combating social exclusion. Contribution & Value Added: Introducing the issue of self-employment into the discussion on income and debt distribution and identifying the over-indebtedness among households of self-employed. To assess the debt repayments, we adopt theoretical income distributions and unique source of data on Polish households in debt. Article type:research article

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Section: Resultsmentioning

confidence: 99%

Self-employment and over-indebtedness in Poland: Modelling income and debt repayments distribution

Wałęga¹,

Wałęga²

2021

EBER

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“…Problems with debt are not limited to financial matters but have also a psychological dimension (Kasoga & Tegambwage, 2021;Lea, 2021). The psychological debt burden is usually investigated by referring to the household's appraisals of their financial situation and perception of repayments, so it is subjective (Betti et al, 2007;D'Alessio & Iezzi, 2016). This burden is manifested in the anxiety, stress, or pressure that household members are subjected to.…”

Section: Literature Review: Conceptual Framework and Hypothesesmentioning

confidence: 99%

Do Children Matter to the Household Debt Burden?

et al. 2023

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In this paper, we assess the scale of indebtedness of households with children and investigate the impact of having children on the likelihood of falling into excessive debt. Using the unique dataset on indebted households in Poland, we employ two indicators to identify over-indebtedness: debt service-to-income ratio (DSTI) and subjective debt burden (SB). Applying two different debt measures allows encompassing both the economic and psychological dimensions of debt burden. In addition, we divide households into two groups: young (with a reference person aged under 35) and middle-aged and older adults (aged 35+). We find that the number of children increases the monthly debt repayments and reduces the likelihood of over-indebtedness, both according to DSTI and SB, for middle-aged and older adult households. There is no evidence for the influence of children on the over-indebtedness of young families. Our results suggest that for this age group of households, the other variables related to their economic situation and debt structures may explain the likelihood of over-indebtedness better than the presence of children.

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“…This survey has been widely used to study poverty and inequality in Italy(Addabbo, 2000;Baldini et al, 2002;Brandolini et al, 2002;D'Alessio and Iezzi, 2016;Dagum and Costa, 2017;Raffinetti et al, 2017;D'Alessio, 2020). The 2016 wave is the last wave currently available to the public.© 2022 The Authors.…”

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confidence: 99%

Lifting You up or Dragging You Down? The Role of Financial Inclusion in Poverty Transitions Among Italian Households

Bettin

Pigini

Zazzaro

2022

Review of Income and Wealth

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We estimate the effect of financial inclusion on transition probabilities into/out of poverty. By exploiting a longitudinal sample of Italian households between 2002 and 2016, we find that financial inclusion is effective in both reducing the likelihood of entering poverty and helping the poor to climb out of it. According to our estimates, access to deposit accounts reduces the risk of falling below the poverty line by 2.7 percentage points (pp) and increases the chance of exiting poverty by 4.4 pp. Significance and magnitude of such effects are confirmed when considering different poverty thresholds and definitions, alternative proxies for financial inclusion as well as alternative empirical strategies.

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Over-Indebtedness in Italy: How Widespread and Persistent Is It?

Cited by 9 publications

References 21 publications

Self-employment and over-indebtedness in Poland: Modelling income and debt repayments distribution

Self-employment and over-indebtedness in Poland: Modelling income and debt repayments distribution

Do Children Matter to the Household Debt Burden?

Lifting You up or Dragging You Down? The Role of Financial Inclusion in Poverty Transitions Among Italian Households

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