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: |
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.:
- 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.
- 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.
- Christopher Gerry & Carmen A Li, 2007.
"Consumption Smoothing and Vulnerability in Russia,"
William Davidson Institute Working Papers Series
wp885, William Davidson Institute at the University of Michigan.
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.