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Like a stone thrown into a pond – poverty contrast of an emporium of solidarity

Marco Ranuzzini (Center for the Analysis of Public Policies (CAPP), Modena, Italy)
Giovanni Gallo (Marco Biagi Department of Economics, University of Modena and Reggio Emilia, Modena, Italy) (National Institute for Public Policies Analysis (INAPP), Rome, Italy)

International Journal of Social Economics

ISSN: 0306-8293

Article publication date: 4 September 2020

Issue publication date: 13 October 2020

123

Abstract

Purpose

This paper highlights to what extent an emporium of solidarity may affect poverty conditions of its recipients, and whether it generates net social benefits to different actors involved.

Design/methodology/approach

To evaluate the effect of an emporium of solidarity project on poverty conditions of its recipients, we run Probit estimation models. As for the efficiency evaluation, we develop instead a social cost–benefit framework which considers benefits and costs to different actors somehow involved in the program. Results are based on survey data collected by the authors and administrative data.

Findings

Using the emporium attendance length as a measure of the treatment intensity, results underscore that the emporium significantly reduces the monetary poverty only, while it is ineffective on the severe material deprivation. The robustness of our results is confirmed by the implementation of a propensity score matching estimator. Our study suggests that emporia can be efficient in term of resources usage and they can determine positive returns to actors involved, implementing a redistribution of goods toward poor households.

Research limitations/implications

The paper and its conclusions are based on a case study, thus an Italian emporium called “Portobello” and located in the inner-city area of Modena (Emilia-Romagna region, Italy).

Originality/value

The main novelty of our paper to the literature consists of the elaboration of a first comprehensive framework for the social impact assessment of an emporium of solidarity, regarding both its effects on socio-economic conditions of poor recipient households and its contribution to the local welfare as a whole.

Keywords

Acknowledgements

We are grateful to Massimo Baldini, Bea Cantillon, Franca Maino, participants to the V ESPANET Germany Doctoral Workshop in Bielefeld (February 2018), participants to the XI ESPANET Italia Conference in Florence (September 2018) and the anonymous referees for useful and constructive comments. The views expressed in this paper are those of the authors and do not necessarily reflect those of INAPP. The usual caveat applies.

Citation

Ranuzzini, M. and Gallo, G. (2020), "Like a stone thrown into a pond – poverty contrast of an emporium of solidarity", International Journal of Social Economics, Vol. 47 No. 10, pp. 1311-1327. https://doi.org/10.1108/IJSE-01-2020-0045

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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