Social exclusion and financial distress: evidence from Italy and Spain

Abstract This paper analyzes the phenomenon of severe material deprivation (SMD) in relation to socio-economic characteristics Italian and Spanish households. Italy Spain have registered very different shares (households that cannot afford a minimum acceptable way life, which is social exclusion problem) since 2008–2009 economic crisis, despite having similar experiences poverty as measured monetary terms. The analysis divides SMD into low-severe (basic or secondary financial deprivations), medium-severe (when household suffer two categories deprivation) acute-severe households from all deprivations) finds many interesting features associated with these categories. For example, temporary work does not shield acute SMD, especially south both countries, maximum intensity protect against distress South. These findings should stimulate policymakers, local policies are needed alleviate exclusion.