Does education protect families' well-being in times of crisis? Measurement issues and empirical findings from IT-SILC data

This study analyses the relationship between education and material well-being from a longitudinal perspective using the European Survey on Income and Living Conditions (EU-SILC) data collected in Italy in four waves (2009-2012). It has two main aims: (i) to measure household material well-being on the basis of householders' responses to multiple survey items (addressed to gather information on the household availability of material resources) by advancing indexes, which can account for global and relative divergences in households' material well-being across survey waves; (ii) to assess how education and other sociodemographic characteristics affect absolute well-being and its variation (i.e. relative well-being) in the time span considered. Both aims are pursued, combining measuring and explanatory modelling approaches. That is, the use of the Multilevel Item Response Theory model allows to measure the global household material well-being and its yearly variation (i.e. relative material well-being) in the four waves. Meanwhile, the use of a multivariate (and multivariate multilevel) regression model allows to assess the effects of education and other sociodemographic characteristics on both components (absolute and relative well-being), controlling for the relevant sources of heterogeneity in the data. The value added to using the proposed methodologies with the main findings and economic implications are discussed.