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Social Aspects of Crisis Effects on Households: The Case of Ukraine

Author

Listed:
  • Larysa Krasnikova
  • Olena Osinkina
  • Tamara Podvysotskaya
  • Yuriy Podvysotskiy

Abstract

The paper investigates the effect of crisis on households’ welfare and severity of poverty in Ukraine. We use Ukrainian Household Survey for three years – 2006, 2009, and 2010 that allows us to investigate separately economic conditions before, during and after the crisis. Welfare in our paper is measured by total income and total expenses per equivalent member; poverty is measured using an income and expenses approach, three different poverty lines are investigated. Most welfare and poverty determinants change over time, as the economic situation changes, although such determinants as education and work experience are equally important in all periods. Residents of Kyiv earn and spend, on average, by 9-11% more than residents of the rest of the country. Based on empirical results some policy recommendations were suggested family-support policies, support for small business, subsidizing new job-creation, healthy life-style support policies, public investment into child day-care facilities, and improvement of job-matching and professional training.

Suggested Citation

  • Larysa Krasnikova & Olena Osinkina & Tamara Podvysotskaya & Yuriy Podvysotskiy, 2012. "Social Aspects of Crisis Effects on Households: The Case of Ukraine," wiiw Balkan Observatory Working Papers 103, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:bpaper:103
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    References listed on IDEAS

    as
    1. Christopher Gerry & Carmen Li, 2010. "Consumption smoothing and vulnerability in Russia," Applied Economics, Taylor & Francis Journals, vol. 42(16), pages 1995-2007.
    2. Brück, Tilman & Danzer, Alexander M. & Muravyev, Alexander & Weisshaar, Natalia, 2010. "Poverty during transition: Household survey evidence from Ukraine," Journal of Comparative Economics, Elsevier, vol. 38(2), pages 123-145, June.
    3. Pradeep Mitra & Marcelo Selowsky & Juan Zalduendo, 2010. "Turmoil at Twenty : Recession, Recovery, and Reform in Central and Eastern Europe and the Former Soviet Union," World Bank Publications - Books, The World Bank Group, number 2682, December.
    4. Asep Suryahadi & Sudarno Sumarto, 2003. "Poverty and Vulnerability in Indonesia Before and After the Economic Crisis," Asian Economic Journal, East Asian Economic Association, vol. 17(1), pages 45-64, March.
    5. Michael M. Lokshin & Ruslan Yemtsov, 2004. "Household Strategies of Coping with Shocks in Post‐crisis Russia," Review of Development Economics, Wiley Blackwell, vol. 8(1), pages 15-32, February.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Welfare function; poverty; transition; survey; Ukraine; financial crisis;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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