The impact of a multifaceted program on fragile individuals. Evidence from an RCT in Italy

Abstract

The increase in poverty rates among families and individuals in Italy over the past two decades can be attributed largely to repeated periods of economic crisis. Growing concern over the problem has driven interest in the role of policy in supporting household welfare. Responding to the currently limited access to (or provision of) public aid and assistance, private institutions and philanthropic foundations have stepped up their efforts to create new initiatives for alleviating poverty. In this paper, we use a randomized control trial (RCT) to evaluate the impact of a new Italian program aimed at supporting vulnerable individuals in four separate but related areas of household welfare: employment, financial circumstances, family responsibilities and housing conditions. The program, known as Integro, was introduced by the Compagnia di San Paolo, one of Italy's largest philanthropic institutions. Our findings indicate a positive and statistically significant impact of Integro on three of the four target outcomes considered, with only the fourth (housing conditions) not being affected. We also sought to identify any initial conditions potentially influencing the extent to which participants benefit from the program. Is Integro equally effective for everyone? According to our data, the program provides the best outcomes for males reporting lower human capital and greater socio-emotional stability.