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Vulnerability to welfare change during economic shocks: Evidence from the 1998 Russian crisis

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Author Info
Christopher J. Gerry ()
Carmen A. Li ()

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Abstract

Using changes in consumption as a proxy for "vulnerability" we identify the characteristics associated with vulnerability around the time of the 1998 Russian financial crisis. In addition, we examine the role of formal and informal safety nets in preserving individual well being. We apply quantile regression techniques in order to identify the characteristics associated with vulnerability across the two periods. Amongst those most vulnerable during the crisis were, less educated individuals living in urban areas, in households containing greater numbers of pensioners. Furthermore, we found that increases in home production and help from relatives acted to decrease vulnerability, especially amongst those suffering the largest changes in consumption. Following the crisis, amongst the least vulnerable were, better educated individuals, resident in urban areas, able to increase home production, and in receipt of improved pension payments and child benefits.

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Paper provided by University of Essex, Department of Economics in its series Economics Discussion Papers with number 541.

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Date of creation: 23 Jul 2002
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Handle: RePEc:esx:essedp:541

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Pritchett, Lant & Suryahadi, Asep & Sumarto, Sudarno, 2000. "Quantifying vulnerability to poverty - a proposed measure, applied to Indonesia," Policy Research Working Paper Series 2437, The World Bank. [Downloadable!]
  2. Ferrer-i-Carbonell, Ada & van Praag, Bernard M.S., 2001. "Poverty in the Russian Federation," IZA Discussion Papers 259, Institute for the Study of Labor (IZA). [Downloadable!]
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Cited by:
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  1. Patrick Hamm & David Stuckler & Lawrence King, 2006. "Mass Privatization and the Postcommunist Mortality Crisis," Working Papers wp118, Political Economy Research Institute, University of Massachusetts at Amherst. [Downloadable!]
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