Poverty during transition: Household survey evidence from Ukraine

The paper analyzes the incidence, the severity and the correlates of household poverty in Ukraine during transition using two comparable surveys from 1996 and 2004. We measure poverty using income and consumption and various poverty lines. Poverty estimates are higher than previously reported if controlling for transition-related labor market shocks. Poverty in both periods follows some of the correlates commonly identified in the literature, including greater poverty among households with children and with less education. We also identify specific features of poverty in the earlier phase of transition, including the relatively low importance of unemployment and the existence of poverty even among households with employment.