IDEAS home Printed from https://ideas.repec.org/p/pru/wpaper/40.html
   My bibliography  Save this paper

Determinants Of Poverty During Transition: Household Survey Evidence From Ukraine

Author

Listed:
  • Tilman Brück1
  • Alexander Danzer
  • Alexander Muravyev
  • Natalia Weißhaar

    (Poverty Research Unit at Sussex, Department of Economics, University of Sussex)

Abstract

The paper analyzes the incidence, the severity and the determinants of household poverty in Ukraine during transition using two comparable surveys from 1996 and 2004. We measure poverty using income and consumption and contrast the effects of various poverty lines. Poverty in both periods follows some of the determinants commonly identified in the literature, including greater poverty among households with children and with less education. We also identify specific features of poverty in transition, including the relatively low importance of unemployment and the existence of poverty even among households with employment. Poverty determinants change over time in line with the experience of transition and restructuring.

Suggested Citation

  • Tilman Brück1 & Alexander Danzer & Alexander Muravyev & Natalia Weißhaar, 2007. "Determinants Of Poverty During Transition: Household Survey Evidence From Ukraine," PRUS Working Papers 40, Poverty Research Unit at Sussex, University of Sussex.
  • Handle: RePEc:pru:wpaper:40
    as

    Download full text from publisher

    File URL: http://www.sussex.ac.uk/Units/PRU/wps/wp40.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ganguli, Ina & Terrell, Katherine, 2006. "Institutions, markets and men's and women's wage inequality: Evidence from Ukraine," Journal of Comparative Economics, Elsevier, vol. 34(2), pages 200-227, June.
    2. Branko Milanovic, 1999. "Explaining the increase in inequality during transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(2), pages 299-341, July.
    3. 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.
    4. Christopher J. Gerry & Byung-Yeon Kim & Carmen A Li, 2004. "The gender wage gap and wage arrears in Russia: Evidence from the RLMS," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(2), pages 267-288, June.
    5. Daniel Münich & Jan Svejnar & Katherine Terrell, 2005. "Returns to Human Capital Under The Communist Wage Grid and During the Transition to a Market Economy," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 100-123, February.
    6. Luca Barbone & Hana Polackova, 1996. "Public Finances and Economic Transition," CASE Network Studies and Analyses 0068, CASE-Center for Social and Economic Research.
    7. Garner, Thesia I & Terrell, Katherine, 1998. "A Gini Decomposition Analysis of Inequality in the Czech and Slovak Republics during the Transition," CEPR Discussion Papers 1897, C.E.P.R. Discussion Papers.
    8. Michael Lokshin, 2004. "Household Childcare Choices and Women’s Work Behavior in Russia," Journal of Human Resources, University of Wisconsin Press, vol. 39(4).
    9. J. Konings & H. Lehmann & M.E. Schaffer, 1996. "Job Creation and Job Destruction in a Transition Economy: Ownership, Firm Size," CERT Discussion Papers 9611, Centre for Economic Reform and Transformation, Heriot Watt University.
    10. Lehmann, Hartmut & Terrell, Katherine, 2006. "The Ukrainian labor market in transition: Evidence from a new panel data set," Journal of Comparative Economics, Elsevier, vol. 34(2), pages 195-199, June.
    11. Flabbi, Luca & Paternostro, Stefano & Tiongson, Erwin R., 2008. "Returns to education in the economic transition: A systematic assessment using comparable data," Economics of Education Review, Elsevier, vol. 27(6), pages 724-740, December.
    12. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    13. World Bank, . "Ukraine Poverty Update," World Bank Other Operational Studies, The World Bank, number 19244.
    14. Atkinson, Anthony B, 1991. "Comparing Poverty Rates Internationally: Lessons from Recent Studies in Developed Countries," World Bank Economic Review, World Bank Group, vol. 5(1), pages 3-21, January.
    15. Gorodnichenko, Yuriy & Sabirianova Peter, Klara, 2005. "Returns to schooling in Russia and Ukraine: A semiparametric approach to cross-country comparative analysis," Journal of Comparative Economics, Elsevier, vol. 33(2), pages 324-350, June.
    16. Ravallion, M., 1992. "Poverty Comparisons - A Guide to Concepts and Methods," Papers 88, World Bank - Living Standards Measurement.
    17. Koenker,Roger, 2005. "Quantile Regression," Cambridge Books, Cambridge University Press, number 9780521845731, August.
    18. Michael P. Keane & Eswar S. Prasad, 2002. "Inequality, Transfers, And Growth: New Evidence From The Economic Transition In Poland," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 324-341, May.
    19. John Haltiwanger & Hartmut Lehmann & Katherine Terrell, 2003. "Job Creation and Job Destruction in Transition Countries1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(2), pages 205-219, June.
    20. Amelie F. Constant & Martin Kahanec & Klaus F. Zimmermann, 2011. "The Russian-Ukrainian Political Divide," Eastern European Economics, Taylor & Francis Journals, vol. 49(6), pages 97-109, November.
    21. Boyarchuk, Dmytro & Maliar, Lilia & Maliar, Serguei, 2005. "The consumption and welfare implications of wage arrears in transition economies," Journal of Comparative Economics, Elsevier, vol. 33(3), pages 540-564, September.
    22. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    23. John Haltiwanger & Hartmut Lehmann & Katherine Terrell, 2003. "Job Creation and Job Destruction in Transition Countries," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(2), pages 205-219, June.
    24. Birdsall, Nancy & Nellis, John, 2003. "Winners and Losers: Assessing the Distributional Impact of Privatization," World Development, Elsevier, vol. 31(10), pages 1617-1633, October.
    25. Svejnar, Jan, 1999. "Labor markets in the transitional Central and East European economies," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 42, pages 2809-2857, Elsevier.
    26. Tito Boeri & Katherine Terrell, 2002. "Institutional Determinants of Labor Reallocation in Transition," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 51-76, Winter.
    27. Gorodnichenko, Yuriy & Sabirianova Peter, Klara, 2007. "Public sector pay and corruption: Measuring bribery from micro data," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 963-991, June.
    28. Johan F. M. Swinnen, 2002. "Transition and Integration in Europe: Implications for Agricultural and Food Markets, Policy, and Trade Agreements," The World Economy, Wiley Blackwell, vol. 25(4), pages 481-501, April.
    29. Kupets, Olga, 2006. "Determinants of unemployment duration in Ukraine," Journal of Comparative Economics, Elsevier, vol. 34(2), pages 228-247, June.
    30. Klugman, Jeni & Micklewright, John & Redmond, Gerry, 2002. "Poverty in the Transition: Social Expenditures and the Working-Age Poor," CEPR Discussion Papers 3389, C.E.P.R. Discussion Papers.
    31. Glewwe, Paul, 1991. "Investigating the determinants of household welfare in Cote d'Ivoire," Journal of Development Economics, Elsevier, vol. 35(2), pages 307-337, April.
    32. Baulch, Bob & Masset, Edoardo, 2003. "Do Monetary and Nonmonetary Indicators Tell the Same Story About Chronic Poverty? A Study of Vietnam in the 1990s," World Development, Elsevier, vol. 31(3), pages 441-453, March.
    33. John Knight & Li Shi, 2006. "Three Poverties in Urban China," Review of Development Economics, Wiley Blackwell, vol. 10(3), pages 367-387, August.
    34. Zimmerman, Frederick J. & Carter, Michael R., 2003. "Asset smoothing, consumption smoothing and the reproduction of inequality under risk and subsistence constraints," Journal of Development Economics, Elsevier, vol. 71(2), pages 233-260, August.
    35. Björn Gustafsson & Ludmila Nivorozhkina, 2004. "Changes in Russian poverty during transition as assessed from microdata from the city of Taganrog," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(4), pages 747-776, December.
    36. Simon Commander & Andrei Tolstopiatenko & Ruslan Yemtsov, 1999. "Channels of redistribution: Inequality and poverty in the Russian transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(2), pages 411-447, July.
    37. Lehmann, Hartmut & Wadsworth, Jonathan & Acquisti, Alessandro, 1999. "Grime and Punishment: Insecurity and Wage Arrears in the Russian Federation," IZA Discussion Papers 65, Institute of Labor Economics (IZA).
    38. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
    39. Sofia Cheidvasser & Hugo Benítez‐Silva, 2007. "The Educated Russian's Curse: Returns to Education in the Russian Federation during the 1990s," LABOUR, CEIS, vol. 21(1), pages 1-41, March.
    40. Jean O. Lanjouw & Peter Lanjouw & Branko Milanovic & Stefano Paternostro, 2004. "Relative price shifts, economies of scale and poverty during economic transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(3), pages 509-536, September.
    41. Grootaert, Christiaan, 1997. "The Determinants of Poverty in Cote d'Ivoire in the 1980s," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 6(2), pages 169-196, July.
    42. Lokshin, Michael & Popkin, Barry M, 1999. "The Emerging Underclass in the Russian Federation: Income Dynamics, 1992-1996," Economic Development and Cultural Change, University of Chicago Press, vol. 47(4), pages 803-829, July.
    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. Maksim Yemelyanau, 2009. "Inequality in Belarus from 1995 to 2007," BEROC Working Paper Series 01, Belarusian Economic Research and Outreach Center (BEROC).
    2. Dimitar NIKOLOSKI & Marjan ANGELESKI & Slavica ROCHESKA, 2018. "Determinants of earnings in Macedonia: assessing the difference between low-paid and highly-paid employees," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 9, pages 111-131, June.
    3. Suripto & Istanti, 2009. "Characteristic of demography, economics factors and poverty in Gunung Kidul regency," Economic Journal of Emerging Markets, Universitas Islam Indonesia, Department of Economics, vol. 1(1), pages 37-45, April.
    4. Carlos Bozzoli & Tilman Brück, 2010. "Determinants of Protests: Longitudinal Evidence from Ukraine’s Orange Revolution," Research Working Papers 30, MICROCON - A Micro Level Analysis of Violent Conflict.
    5. Maksim Yemelyanau, 2008. "Inequality in Belarus from 1995 to 2005," CERGE-EI Working Papers wp356, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    6. Danzer, Alexander M. & Dietz, Barbara, 2008. "Economic Migration, Networks and Human Capital Transferability from the New European Borderlands. A Comparison of Five Eastern European Countries," Proceedings of the German Development Economics Conference, Zurich 2008 7, Verein für Socialpolitik, Research Committee Development Economics.
    7. Olga Kupets, . "Characteristics and Determinants of Internal Labor Mobility in Ukraine," World Bank Other Operational Studies, The World Bank, number 26804.
    8. Kang, Woojin & Imai, Katsushi S., 2012. "Pro-poor growth, poverty and inequality in rural Vietnam," Journal of Asian Economics, Elsevier, vol. 23(5), pages 527-539.
    9. Johannes Koettl & Olga Kupets & Anna Olefir & Indhira Santos, 2014. "In search of opportunities? The barriers to more efficient internal labor mobility in Ukraine," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-28, December.
    10. Danzer, Alexander M., 2010. "Retirement Responses to a Generous Pension Reform: Evidence from a Natural Experiment in Eastern Europe," IZA Discussion Papers 4726, Institute of Labor Economics (IZA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brück, Tilman & Danzer, Alexander M. & Muravyev, Alexander & Weisshaar, Natalia, 2010. "Poverty during transition: Household survey evidence from Ukraine," Journal of Comparative Economics, Elsevier, vol. 38(2), pages 123-145, June.
    2. Ganguli, Ina & Terrell, Katherine, 2006. "Institutions, markets and men's and women's wage inequality: Evidence from Ukraine," Journal of Comparative Economics, Elsevier, vol. 34(2), pages 200-227, June.
    3. Karolina Goraus & Joanna Tyrowicz & Lucas van der Velde, 2017. "How (Not) to make women work?," GRAPE Working Papers 1, GRAPE Group for Research in Applied Economics.
    4. repec:iab:iabzaf:v:41:i:2-3:p:157-179 is not listed on IDEAS
    5. Hartmut Lehmann & Alexander Muravyev & Klaus Zimmermann, 2012. "The Ukrainian longitudinal monitoring survey: towards a better understanding of labor markets in transition," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-15, December.
    6. Jolliffe, Dean & Campos, Nauro F., 2005. "Does market liberalisation reduce gender discrimination? Econometric evidence from Hungary, 1986-1998," Labour Economics, Elsevier, vol. 12(1), pages 1-22, February.
    7. Amelie F. Constant & Martin Kahanec & Klaus F. Zimmermann, 2012. "The Russian–Ukrainian earnings divide," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 20(1), pages 1-35, January.
    8. Dohmen, Thomas & Lehmann, Hartmut & Zaiceva, Anzelika, 2008. "The gender earnings gap inside a Russian firm : first evidence from personnel data - 1997 to 2002," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 157-179.
    9. Oglobin, C., 2005. "The Gender Earnings Differential in Russia After a Decade of Economic Transition," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 5(3).
    10. Karolina Goraus & Joanna Tyrowicz, 2013. "The Goodwill Effect? Female Access to the Labor Market Over Transition: A Multicountry Analysis," Working Papers 2013-19, Faculty of Economic Sciences, University of Warsaw.
    11. Jelena Lausev, 2014. "WHAT HAS 20 YEARS OF PUBLIC–PRIVATE PAY GAP LITERATURE TOLD US? EASTERN EUROPEAN TRANSITIONING vs. DEVELOPED ECONOMIES," Journal of Economic Surveys, Wiley Blackwell, vol. 28(3), pages 516-550, July.
    12. Dean Jolliffe & Nauro F. Campos, 2004. "Does Market Liberalisation Reduce Gender Discrimination? Econometric Evidence from Hungary, 1986???1998," William Davidson Institute Working Papers Series 2004-678, William Davidson Institute at the University of Michigan.
    13. Danzer, Alexander M., 2011. "Labor Supply and Consumption Smoothing When Income Shocks Are Non-Insurable," IZA Discussion Papers 5499, Institute of Labor Economics (IZA).
    14. Joanna Tyrowicz & Lucas Augusto van der Velde, 2021. "When Opportunity Knocks: Confronting Theory and Empirics About Dynamics of Gender Wage Inequality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(3), pages 837-864, June.
    15. Thomas Dohmen & Hartmut Lehmann & Anzelika Zaiceva, 2008. "The Gender Earnings Gap inside a Russian Firm: First Evidence from Personnel Data - 1997 to 2002 ; Updated Version," ESCIRRU Working Papers 6, DIW Berlin, German Institute for Economic Research.
    16. Fleisher, Belton M. & Sabirianova, Klara & Wang, Xiaojun, 2005. "Returns to skills and the speed of reforms: Evidence from Central and Eastern Europe, China, and Russia," Journal of Comparative Economics, Elsevier, vol. 33(2), pages 351-370, June.
    17. Svejnar, Jan, 2007. "China in Light of the Performance of Central and East European Economies," IZA Discussion Papers 2791, Institute of Labor Economics (IZA).
    18. Michal Brzezinski, 2019. "Diagnosing Unhappiness Dynamics: Evidence from Poland and Russia," Journal of Happiness Studies, Springer, vol. 20(7), pages 2291-2327, October.
    19. Andrén, Daniela & Andrén, Thomas, 2007. "Occupational Gender Composition and Wages in Romania: From Planned Equality to Market Inequality?," IZA Discussion Papers 3152, Institute of Labor Economics (IZA).
    20. 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.
    21. Roshchin, Sergey & Yemelina, Natalya, 2021. "Gender wage gap decomposition methods: Comparative analysis," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 62, pages 5-31.

    More about this item

    Keywords

    Poverty; Transition; Survey; Ukraine;
    All these keywords.

    JEL classification:

    • P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

    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:pru:wpaper:40. 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: . General contact details of provider: https://edirc.repec.org/data/ecsusuk.html .

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: University of Sussex Business School Communications Team (email available below). General contact details of provider: https://edirc.repec.org/data/ecsusuk.html .

    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.