Changes in household composition as a shock-mitigating strategy
AbstractThis paper uses data from the Russian Longitudinal Survey that span the two recent economic recessions of 1998 and 2008 to study the effect of declining incomes on household composition. We hypothesize that individuals face a tradeoff between taking advantages of economies of scale and specialization when living with others and individual privacy. Consumption smoothing is achieved by forgoing privacy during a crisis and results in an increase in household size. Our empirical results suggest that members of the households that experienced negative income shocks are more likely to move in with others than households whose income remained the same or increased.
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Bibliographic InfoPaper provided by National Research University Higher School of Economics in its series HSE Working papers with number WP BRP 38/EC/2013.
Length: 20 pages
Date of creation: 2013
Date of revision:
Publication status: Published in WP BRP Series: Economics / EC, November 2013, pages 1-20
household structure; coping strategy; macroeconomic shocks; Russia;
Find related papers by JEL classification:
- J10 - Labor and Demographic Economics - - Demographic Economics - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-12-06 (All new papers)
- NEP-CIS-2013-12-06 (Confederation of Independent States)
- NEP-MAC-2013-12-06 (Macroeconomics)
- NEP-TRA-2013-12-06 (Transition Economics)
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.:
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William Davidson Institute Working Papers Series
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w0057, Center for Economic and Financial Research (CEFIR).
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- James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
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