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Entry to and Exit from Poverty in Russia: Evidence from Longitudinal Data

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  • Irina Denisova

    () (CEFIR)

Abstract

Long-term sustainability requires social stability and hence could be undermined by high poverty levels. Still more than twenty five million Russians have incomes that are lower than subsistence level. Effective policies to fight poverty are to be based on clear understanding of its determinants and are to distinguish between measures to prevent from slipping into poverty, and measures to get out of poverty for those who are poor. The study is the first attempt to investigate how entry to poverty and exit from poverty in Russia are shaped, and what are the determinants of the processes. We study entry and exit to poverty using survival analysis and utilizing the Russian Longitudinal Monitoring Survey (RLMS) panel for 1994-2004. The study allows obtaining some important insights. In particular, it shows that the two processes have both symmetries and important asymmetries, with an example of one of the most interesting results being the asymmetry in the influence of economic periods. It turns out that economic growth lowers chances to slip into poverty but also reduces hazards from poverty. This implies that households in poverty in the era of economic upturn are those with serious problems and are to be paid special attention to.

Suggested Citation

  • Irina Denisova, 2007. "Entry to and Exit from Poverty in Russia: Evidence from Longitudinal Data," Working Papers w0098, Center for Economic and Financial Research (CEFIR).
  • Handle: RePEc:cfr:cefirw:w0098
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    File URL: http://www.cefir.ru/papers/WP98Poverty_Denisova.pdf
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    References listed on IDEAS

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    1. Peter Gottschalk & Enrico Spolaore, 2002. "On the Evaluation of Economic Mobility," Review of Economic Studies, Oxford University Press, vol. 69(1), pages 191-208.
    2. John S. Earle & Klara Z. Sabirianova, 2002. "How Late to Pay? Understanding Wage Arrears in Russia," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 661-707, July.
    3. Kiefer, Nicholas M, 1988. "Economic Duration Data and Hazard Functions," Journal of Economic Literature, American Economic Association, vol. 26(2), pages 646-679, June.
    4. Bradford Mills & Elton Mykerezi, 2009. "Chronic and transient poverty in the Russian Federation," Post-Communist Economies, Taylor & Francis Journals, vol. 21(3), pages 283-306.
    5. Spryskov Dmitry, 2003. "Below the Poverty Line: Duration of Poverty in Russia," EERC Working Paper Series 03-04e, EERC Research Network, Russia and CIS.
    6. Jyotsna Jalan & Martin Ravallion, 2000. "Is transient poverty different? Evidence for rural China," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 82-99.
    7. 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.
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    Cited by:

    1. Marek Gora & Grzegorz Kula & Magdalena Rokicka & Oleksandr Rohozynsky & Anna Ruzik, 2008. "Social Security, Labour Market and Restructuring: Current Situation and Expected Outcomes of Reforms," ESCIRRU Working Papers 5, DIW Berlin, German Institute for Economic Research.
    2. Lukiyanova, Anna & Oshchepkov, Aleksey, 2012. "Income mobility in Russia (2000–2005)," Economic Systems, Elsevier, vol. 36(1), pages 46-64.
    3. 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.
    4. Ana Flavia Machado & Rafael Perez Ribas, 2010. "Do Changes in the Labour Market Take Families Out of Poverty? Determinants of Exiting Poverty in Brazilian Metropolitan Regions," Journal of Development Studies, Taylor & Francis Journals, vol. 46(9), pages 1503-1522.
    5. 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.

    More about this item

    Keywords

    Poverty; Duration Analysis; Entry to Poverty; Exit from Poverty; Transition; RLMS;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • P36 - Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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