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Poverty in the Russian Federation

Author

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  • Ferrer-i-Carbonell, Ada

    (CSIC Institute for Economic Analysis)

  • van Praag, Bernard M. S.

    (University of Amsterdam)

Abstract

This paper is intended to shed light on the extent of poverty in the Russian Federation. We present estimates of poverty lines and poverty ratios derived from subjective questions used in a during data collection for a large household panel (RUSSET). We estimate poverty using a subjective approach, where the level of the poverty line is derived using the opinion of the individual, rich or poor, on poverty. This approach differs from the objective approach to poverty, which defines poverty according to the opinion of experts. Three subjective poverty lines are presented: one the Financial Satisfaction Poverty Line, two the Leyden Poverty Line, and three the Subjective Well-Being Poverty Line. The first two poverty lines are based on subjective questions regarding income and economic welfare while the last concept focuses on satisfaction with life as a whole. The results obtained are compared with each other and with results derived using ’objective’ measures and official figures.

Suggested Citation

  • Ferrer-i-Carbonell, Ada & van Praag, Bernard M. S., 2001. "Poverty in the Russian Federation," IZA Discussion Papers 259, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp259
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    Cited by:

    1. Selezneva, Ekaterina, 2011. "Surveying transitional experience and subjective well-being: Income, work, family," Economic Systems, Elsevier, vol. 35(2), pages 139-157, June.
    2. Anna Mironova, 2015. "Trust as a Factor of Subjective Life Satisfaction," HSE Working papers WP BRP 42/PSY/2015, National Research University Higher School of Economics.
    3. Dang,Hai-Anh H. & Lokshin,Michael M. & Abanokova,Ksenia & Bussolo,Maurizio, 2018. "Inequality and Welfare Dynamics in the Russian Federation during 1994-2015," Policy Research Working Paper Series 8629, The World Bank.
    4. Lokshin, M. & Yemtsov, R., 2013. "Farewell to Destitution?," Journal of the New Economic Association, New Economic Association, vol. 18(2), pages 158-161.
    5. Geishecker, Ingo & Haisken-DeNew, John P., 2004. "Landing on all fours? Communist elites in post-Soviet Russia," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 700-719, December.
    6. Zhanna Kravchenko, 2008. "On Public Support for Working Parents in Russia," LIS Working papers 479, LIS Cross-National Data Center in Luxembourg.
    7. Delia Davila Quintana & Santiago Rodriguez Feijoó & Alejandro Rodriguez Caro & Vanessa del Pino González García, 2005. "Measuring Poverty In An Ultraperipheral Region - The Case Of The Canary Islands," ERSA conference papers ersa05p667, European Regional Science Association.
    8. Ada Ferrer-i-Carbonell, 2002. "Subjective Questions to Measure Welfare and Well-being," Tinbergen Institute Discussion Papers 02-020/3, Tinbergen Institute.
    9. Graham, Carol & Eggers, Andrew & Sukhtankar, Sandip, 2004. "Does happiness pay?: An exploration based on panel data from Russia," Journal of Economic Behavior & Organization, Elsevier, vol. 55(3), pages 319-342, November.
    10. Sergey Kapelyuk, 2015. "The effect of minimum wage on poverty," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 23(2), pages 389-423, April.
    11. Arsenijevic, Jelena & Pavlova, Milena & Groot, Wim, 2013. "Measuring the catastrophic and impoverishing effect of household health care spending in Serbia," Social Science & Medicine, Elsevier, vol. 78(C), pages 17-25.
    12. Lelkes, Orsolya, 2003. "A pénz boldogít? A jövedelem és hasznosság kapcsolatának empirikus elemzése [Can money buy happiness? An empirical analysis of the relation between income and utility]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 383-405.
    13. Yuka Takeda, 2010. "Equivalence scales for measuring poverty in transitional Russia: Engel's food share method and the subjective economic well-being method," Applied Economics Letters, Taylor & Francis Journals, vol. 17(4), pages 351-355.
    14. Ferrer-i-Carbonell, Ada, 2005. "Income and well-being: an empirical analysis of the comparison income effect," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 997-1019, June.
    15. Noelia Somarriba Arechavala & Bernardo Pena Trapero, 2008. "Quality Of Life And Subjective Welfare In Europe: An Econometric Analysis," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 8(2), pages 55-66.
    16. Ada Ferrer-i-Carbonell, 2013. "Happiness economics," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 4(1), pages 35-60, March.
    17. Dávila Quintana, C. Delia & Garcia, Vanessa del Pino González & Feijoó, Santiago Rodri­guez & Caro, Alejandro Rodri­guez, 2008. "Describing poverty in an ultraperipheral region: The case of the Canary Islands," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(3), pages 1119-1133, June.
    18. Gerry, Christopher J & Li, Carmen A, 2002. "Vulnerability to welfare change during economic shocks: Evidence from the 1998 Russian crisis," Economics Discussion Papers 3619, University of Essex, Department of Economics.
    19. Jean-Marc Falter, 2006. "Equivalence Scales and Subjective Data in Switzerland," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 142(II), pages 263-284, June.
    20. Ada Ferrer-i-Carbonell, 2002. "Income and Well-being," Tinbergen Institute Discussion Papers 02-019/3, Tinbergen Institute.
    21. Kapelyuk Sergey, 2014. "Impact of minimum wage on income distribution and poverty in Russia," EERC Working Paper Series 14/03e, EERC Research Network, Russia and CIS.

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    More about this item

    Keywords

    Poverty; subjective poverty; Leyden approach; well-being; Russian Federation.; financial satisfaction;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D60 - Microeconomics - - Welfare Economics - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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