Changes in household composition as a shock-mitigating strategy
This 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.
|Date of creation:||2013|
|Date of revision:|
|Publication status:||Published in WP BRP Series: Economics / EC, November 2013, pages 1-20|
|Contact details of provider:|| Postal: Myasnitskaya 20, Moscow 101000|
Web page: http://www.hse.ru/
More information through EDIRC
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.:
- Annamaria Lusardi & Daniel Schneider & Peter Tufano, 2011.
"Financially Fragile Households: Evidence and Implications,"
Brookings Papers on Economic Activity,
Economic Studies Program, The Brookings Institution, vol. 42(1 (Spring), pages 83-150.
- Annamaria Lusardi & Daniel J. Schneider & Peter Tufano, 2011. "Financially Fragile Households: Evidence and Implications," NBER Working Papers 17072, National Bureau of Economic Research, Inc.
- Annamaria Lusardi & Daniel Schneider & Peter Tufano, 2011. "Financially Fragile Households: Evidence and Implications," CeRP Working Papers 116, Center for Research on Pensions and Welfare Policies, Turin (Italy).
- Nelson, Julie A, 1988. "Household Economies of Scale in Consumption: Theory and Evidence," Econometrica, Econometric Society, vol. 56(6), pages 1301-14, November.
- Steven Stillman & Duncan Thomas, 2008. "Nutritional Status During an Economic Crisis: Evidence from Russia," Economic Journal, Royal Economic Society, vol. 118(531), pages 1385-1417, 08.
- Greg Kaplan, 2010.
"Moving back home: insurance against labor market risk,"
677, Federal Reserve Bank of Minneapolis.
- Greg Kaplan, 2012. "Moving Back Home: Insurance against Labor Market Risk," Journal of Political Economy, University of Chicago Press, vol. 120(3), pages 446 - 512.
- Greg Kaplan, 2010. "Moving back home: insurance against labor market risk," Staff Report 449, Federal Reserve Bank of Minneapolis.
- Eskander Alvi & Seife Dendir, 2009. "Private Transfers, Informal Loans and Risk Sharing Among Poor Urban Households in Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 45(8), pages 1325-1343.
- Guido Friebel & Sergei Guriev, 2005.
"Attaching Workers Through In-kind Payments: Theory and Evidence from Russia,"
w0057, Center for Economic and Financial Research (CEFIR).
- Guido Friebel & Sergei Guriev, 2005. "Attaching Workers through In-Kind Payments: Theory and Evidence from Russia," World Bank Economic Review, World Bank Group, vol. 19(2), pages 175-202.
- Guido Friebel & Sergei Guriev, 2005. "Attaching Workers through In-Kind Payments: Theory and Evidence from Russia," Sciences Po publications info:hdl:2441/5q3gpbfo7i8, Sciences Po.
- Christopher Gerry & Carmen Li, 2010.
"Consumption smoothing and vulnerability in Russia,"
Taylor & Francis Journals, vol. 42(16), pages 1995-2007.
- Geranda Notten & Denis de Crombrugghe, 2012. "Consumption smoothing in Russia," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 20(3), pages 481-519, 07.
- Marcel Fafchamps & Susan Lund, 2000.
"Risk-Sharing Networks in Rural Philippines,"
Economics Series Working Papers
10, University of Oxford, Department of Economics.
- Lokshin, Michael & Mullan Harris, Kathleen & Popkin, Barry, 2000.
"Single mothers in Russia - household strategies for coping with poverty,"
Policy Research Working Paper Series
2300, The World Bank.
- Lokshin, Michael & Harris, Kathleen Mullan & Popkin, Barry M., 2000. "Single Mothers in Russia: Household Strategies for Coping with Poverty," World Development, Elsevier, vol. 28(12), pages 2183-2198, December.
- Lee, Jeong-Joon & Sawada, Yasuyuki, 2010.
"Precautionary saving under liquidity constraints: Evidence from rural Pakistan,"
Journal of Development Economics,
Elsevier, vol. 91(1), pages 77-86, January.
- Jeong-Joon Lee & Yasuyuki Sawada, 2005. "Precautionary Saving under LiquidityConstraints: Evidence from Rural Pakistan," CIRJE F-Series CIRJE-F-377, CIRJE, Faculty of Economics, University of Tokyo.
- Emmanuel Skoufias, 2003. "Consumption smoothing in Russia," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(1), pages 67-91, March.
- Greg Kaplan, 2009. "Boomerang kids: labor market dynamics and moving back home," Working Papers 675, Federal Reserve Bank of Minneapolis.
- Rasmus Heltberg & Niels Lund, 2009. "Shocks, Coping, and Outcomes for Pakistan's Poor: Health Risks Predominate," Journal of Development Studies, Taylor & Francis Journals, vol. 45(6), pages 889-910.
- Douglas Staiger & James H. Stock, 1997.
"Instrumental Variables Regression with Weak Instruments,"
Econometric Society, vol. 65(3), pages 557-586, May.
- Douglas Staiger & James H. Stock, 1994. "Instrumental Variables Regression with Weak Instruments," NBER Technical Working Papers 0151, National Bureau of Economic Research, Inc.
- Sebastian Dyrda & Greg Kaplan & José-Víctor Ríos-Rull, 2012. "Business Cycles and Household Formation: The Micro vs the Macro Labor Elasticity," NBER Working Papers 17880, National Bureau of Economic Research, Inc.
- 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.
- Andrew Dillon & Valerie Mueller & Sheu Salau, 2011.
"Migratory Responses to Agricultural Risk in Northern Nigeria,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 93(4), pages 1048-1061.
- Dillon, Andrew & Mueller, Valerie & Salau, Sheu, 2010. "Migratory responses to agricultural risk in Northern Nigeria," IFPRI discussion papers 1007, International Food Policy Research Institute (IFPRI).
- Andrew D. Foster & Mark R. Rosenzweig, 2002. "Household Division and Rural Economic Growth," Review of Economic Studies, Oxford University Press, vol. 69(4), pages 839-869.
- Lee, Kwan Ok & Painter, Gary, 2013. "What happens to household formation in a recession?," Journal of Urban Economics, Elsevier, vol. 76(C), pages 93-109.
- Ermisch, John, 1999. "Prices, Parents, and Young People's Household Formation," Journal of Urban Economics, Elsevier, vol. 45(1), pages 47-71, January.
- Elizabeth Frankenberg & James P. Smith & Duncan Thomas, 2004.
"Economic Shocks, Wealth and Welfare,"
Labor and Demography
- World Bank, 2012. "Moderating Risks, Bolstering Growth," World Bank Other Operational Studies 12379, The World Bank.
- Emily E. Wiemers, 2014. "The Effect of Unemployment on Household Composition and Doubling Up," Working Papers 2014_05, University of Massachusetts Boston, Economics Department.
When requesting a correction, please mention this item's handle: RePEc:hig:wpaper:38/ec/2013. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamil Abdulaev)or (Victoria Elkina)
If references are entirely missing, you can add them using this form.