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Indicators of Poverty in Transitional Russia

Author

Listed:
  • Korchaguina Irina
  • Ovcharova Lilia
  • Turuntsev Evgeny

Abstract

The authors attempt to provide poverty rate estimates in Russia adjusted for in-kind consumption. The results show that for rural households in-kind food consumption accounts, on average, for about 75% of total food consumption and that about 25% of food consumption among urban households comes from unrecorded incomes. This indicates that nearly 40% of food consumption for the total sampling comes from part-time family farming. It follows that poverty headcounts are significantly reduced when non-monetary consumption is taken into account. According to the report, 26% to 28% of Russia’s population live below the poverty line; official estimates put these figures between 34% and 44%. The paper offers a broader concept of poverty by considering real estate and personal assets when evaluating the economic potential of a household.

Suggested Citation

  • Korchaguina Irina & Ovcharova Lilia & Turuntsev Evgeny, 1999. "Indicators of Poverty in Transitional Russia," EERC Working Paper Series 98-04e, EERC Research Network, Russia and CIS.
    • Handle: RePEc:eer:wpalle:98-04e
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    More about this item

    Keywords

    household expenses; household income; poverty; Russia; subsistence minimum;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution

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