IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp574.html
   My bibliography  Save this paper

Understanding Interhousehold Transfers in a Transition Economy: Evidence from Russia

Author

Listed:
  • Kuhn, Randall

    () (University of Colorado, Boulder)

  • Stillman, Steven

    () (Free University of Bozen/Bolzano)

Abstract

This paper uses data from the Russian Longitudinal Monitoring Survey to describe and model the determinants of interhousehold transfers. Russian households have experienced large reductions in income during the post-Soviet transition period, with a particularly severe decline occurring in the fall of 1998. Sharply declining fertility, increasing mortality, and past demographic catastrophes has left a population which is both young (few elderly) and old (one of the oldest working-age populations in the world). Informal networks in Russia are likely to take on distinctive characteristics as the country’s economic institutions are underdeveloped and there is a very limited social safety net, while household structure closely resembles that found in much wealthier countries. Although it is often assumed that the elderly in Russia are a highly vulnerable economic group, we actually find that transfers flow strongly from the elderly to their adult children, whom are typically in the early part of the life-course (i.e. in school, starting to work, or recently married). This is especially true for the elderly in rural areas. While households with higher longer-term resources receive on net more transfers, we also find strong evidence that transfers respond to economic needs (i.e. transitory fluctuations in resources).

Suggested Citation

  • Kuhn, Randall & Stillman, Steven, 2002. "Understanding Interhousehold Transfers in a Transition Economy: Evidence from Russia," IZA Discussion Papers 574, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp574
    as

    Download full text from publisher

    File URL: http://ftp.iza.org/dp574.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Schoeni, Robert F, 1997. "Private Interhousehold Transfers of Money and Time: New Empirical Evidence," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 43(4), pages 423-448, December.
    2. Cox, Donald & Jimenez, Emmanuel & Okrasa, Wlodek, 1997. "Family Safety Nets and Economic Transition: A Study of Worker Households in Poland," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 43(2), pages 191-209, June.
    3. Duncan Thomas & Elizabeth Frankenberg & James P. Smith, 2001. "Lost but Not Forgotten: Attrition and Follow-up in the Indonesia Family Life Survey," Journal of Human Resources, University of Wisconsin Press, vol. 36(3), pages 556-592.
    4. Case, Anne & Deaton, Angus, 1998. "Large Cash Transfers to the Elderly in South Africa," Economic Journal, Royal Economic Society, vol. 108(450), pages 1330-1361, September.
    5. Townsend, Robert M, 1994. "Risk and Insurance in Village India," Econometrica, Econometric Society, vol. 62(3), pages 539-591, May.
    6. Lee Lillard & Robert Willis, 1997. "Motives for interqenerational transfers: Evidence from Malaysia," Demography, Springer;Population Association of America (PAA), vol. 34(1), pages 115-134, February.
    7. Samuel Preston, 1984. "Children and the elderly: Divergent paths for America’s dependents," Demography, Springer;Population Association of America (PAA), vol. 21(4), pages 435-457, November.
    8. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-546, June.
    9. Jensen, Robert T. & Richter, Kaspar, 2004. "The health implications of social security failure: evidence from the Russian pension crisis," Journal of Public Economics, Elsevier, vol. 88(1-2), pages 209-236, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:zbw:iamost:86 is not listed on IDEAS
    2. Matthieu CLEMENT (GREThA), 2007. "The relation between private transfers and household income on looking at altruism, exchange and risk-sharing hypotheses. An empirical analysis applied to Russia (In French)," Cahiers du GREThA 2007-08, Groupe de Recherche en Economie Théorique et Appliquée.
    3. Grogan, Louise, 2013. "Household formation rules, fertility and female labour supply: Evidence from post-communist countries," Journal of Comparative Economics, Elsevier, vol. 41(4), pages 1167-1183.
    4. Dimova, Ralitza & Wolff, François-Charles, 2008. "Are private transfers poverty and inequality reducing? Household level evidence from Bulgaria," Journal of Comparative Economics, Elsevier, vol. 36(4), pages 584-598, December.
    5. Mark C. Foley & William Pyle, 2005. "Household Savings in Russia during the Transition," Middlebury College Working Paper Series 0522, Middlebury College, Department of Economics.

    More about this item

    Keywords

    aging; interhousehold transfers; transition economies; household structure; Russia;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • P36 - Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp574. 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: (Mark Fallak). General contact details of provider: http://www.iza.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.