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Perceptions of economic insecurity: Evidence from Russia

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  • Linz, Susan J.
  • Semykina, Anastasia

Abstract

Economic insecurity is an inherent characteristic of the transition from a planned economy to a market-oriented economy and workers' assessments of their economic insecurity have direct consequences not only for their happiness/well-being, but also on consumption and saving behavior. This study utilizes data from the nationally representative Russian Longitudinal Monitoring Survey to study perceptions of economic insecurity among workers in both rural and urban settlements. Analyzing three measures of perceived economic insecurity, we find that perceptions of insecurity were higher when economic conditions were deteriorating (1995-1998), and lower when economic conditions had stabilized (2000-2004). While perceived insecurity varies substantially by worker characteristics-those with less education, women, and unskilled and semi-skilled manual workers feel most vulnerable-, differences in observed characteristics explain a relatively small part of the ruralurban perceptions gap; other factors, such as different rates of economic recovery in rural and urban locales are also important. Individual well-being and household consumption tend to be lower when concerns about economic insecurity are present.

Suggested Citation

  • Linz, Susan J. & Semykina, Anastasia, 2010. "Perceptions of economic insecurity: Evidence from Russia," Economic Systems, Elsevier, vol. 34(4), pages 357-385, December.
  • Handle: RePEc:eee:ecosys:v:34:y:2010:i:4:p:357-385
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    References listed on IDEAS

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    Cited by:

    1. Otrachshenko, Vladimir & Popova, Olga & Tavares, José, 2016. "Psychological Costs of Currency Transition: Evidence from Euro Adoption," CEPR Discussion Papers 11071, C.E.P.R. Discussion Papers.
    2. Artjoms Ivlevs, 2014. "Economic Insecurity in Transition: A Primary Commodities Perspective," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S1), pages 117-140, May.
    3. Lokshin, Michael & Gimpelson, Vladimir & Oshchepkov, Aleksey, 2012. "Explaining the Dynamics in Perceptions of Job Insecurity in Russia," IZA Discussion Papers 6422, Institute for the Study of Labor (IZA).
    4. Otrachshenko, Vladimir & Popova, Olga & Tavares, José, 2016. "Psychological costs of currency transition: evidence from the euro adoption," European Journal of Political Economy, Elsevier, vol. 45(C), pages 89-100.
    5. Staudigel, Matthias, 2016. "A soft pillow for hard times? Economic insecurity, food intake and body weight in Russia," Journal of Health Economics, Elsevier, vol. 50(C), pages 198-212.
    6. Conchita D'Ambrosio & Nicholas Rohde, 2014. "The Distribution of Economic Insecurity: Italy and the U.S. over the Great Recession," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S1), pages 33-52, May.

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