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Household strategies for coping with poverty and social exclusion in post-crisis Russia

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  • Lokshin, Michael M.
  • Yemtsov, Ruslan

Abstract

What strategies have Russian households used, to cope with economic hardship in the wake of recent financial crisis? Which coping strategies have been most effective in reducing poverty for different groups of households? And how have people been able to adapt to the dramatic drop in formal cash incomes? The authors look at these questions using subjective evaluations of coping strategies used by household survey respondents to mitigatethe effects of the Russian financial crisis on their welfare. The data come from two rounds (1996 and 1998) of the Russian Longitudinal Monitoring Survey. The results of their analysis show that a household's choice of survival strategy, strongly depends on its human capital: the higher its level of human capital, the more likely it is to choose an active strategy (such as finding a supplementary job, or increasing home production). Households with low levels of human capital, those headed by pensioners, and those whose members have low levels of education, are more likely to suffer social exclusion. To prevent poverty from becoming entrenched, the trend toward marginalization, and impoverishment of these groups of households, needs to be monitored, and targeted policy interventions need to be undertaken to reverse the trend.

Suggested Citation

  • Lokshin, Michael M. & Yemtsov, Ruslan, 2001. "Household strategies for coping with poverty and social exclusion in post-crisis Russia," Policy Research Working Paper Series 2556, The World Bank.
  • Handle: RePEc:wbk:wbrwps:2556
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    References listed on IDEAS

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    1. Paul Mosley & Robert Holzmann & Steen Jorgensen, 1999. "Social protection as social risk management: conceptual underpinnings for the social protection sector strategy paper," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(7), pages 1005-1027.
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    Citations

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    Cited by:

    1. Guy Lacroix & Natalia Radtchenko, 2011. "The changing intra-household resource allocation in Russia," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(1), pages 85-106, January.
    2. Laura Taylor & Mary Wrenn, 2003. "Forging new relationships: Social capital in the transistion," Forum for Social Economics, Taylor & Francis Journals, vol. 33(1), pages 1-11, January.
    3. World Bank, 2003. "Bosnia and Herzegovina : Poverty Assessment, Volume 1. Main Report," World Bank Other Operational Studies 14693, The World Bank.
    4. repec:ilo:ilowps:356575 is not listed on IDEAS
    5. Robert Oxoby, 2009. "Understanding social inclusion, social cohesion, and social capital," International Journal of Social Economics, Emerald Group Publishing, vol. 36(12), pages 1133-1152, October.
    6. Tamar Khitarishvili, 2013. "The Economic Crisis of 2008 and the Added Worker Effect in Transition Countries," Economics Working Paper Archive wp_765, Levy Economics Institute.
    7. John Giles & Albert Park & Fang Cai, 2003. "How has Economic Restructuring Affected China???s Urban Workers?," William Davidson Institute Working Papers Series 2003-628, William Davidson Institute at the University of Michigan.
    8. HwaJung Choi, 2011. "Parents’ Health and Adult Children’s Subsequent Working Status: A Perspective of Intergenerational Transfer and Time Allocation," Journal of Family and Economic Issues, Springer, vol. 32(3), pages 493-507, September.
    9. Bidani, Benu & Fatou Diagne, Mame & Zaidi, Salman, 2012. "Subjective perceptions of the impact of the global economic crisis in Europe and Central Asia : the household perspective," Policy Research Working Paper Series 5995, The World Bank.
    10. OGLOBLIN, Constantin & BROCK, Gregory, 2006. "Household Income And The Role Of Household Plots In Rural Russia," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 6(1).
    11. Christoph Bühler & Dimiter Philipov, 2005. "Social Capital Related to Fertility: Theoretical Foundations and Empirical Evidence from Bulgaria," Vienna Yearbook of Population Research, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna, vol. 3(1), pages 53-81.
    12. Notten, Geranda & Neubourg, Chris de, 2007. "Managing risks: what Russian households do to smooth consumption?," MPRA Paper 4670, University Library of Munich, Germany.
    13. Christoph Bühler & Dimiter Philipov, 2005. "Social capital related to fertility: theoretical foundations and empirical evidence from Bulgaria," MPIDR Working Papers WP-2005-016, Max Planck Institute for Demographic Research, Rostock, Germany.
    14. Christoph Bühler, 2008. "On the structural value of children and its implication on intended fertility in Bulgaria," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 18(20), pages 569-610, June.
    15. Sabine Bernabe, 2002. "Informal Employment in Countries in Transition: A conceptual framework," CASE Papers case56, Centre for Analysis of Social Exclusion, LSE.
    16. Dasgupta, Basab & Ajwad, Mohamed Ihsan, 2011. "Income shocks reduce human capital investments : evidence from five east European countries," Policy Research Working Paper Series 5926, The World Bank.
    17. Bernabe, Sabine, 2002. "Informal employment in countries in transition: a conceptual framework," LSE Research Online Documents on Economics 6389, London School of Economics and Political Science, LSE Library.

    More about this item

    Keywords

    Housing&Human Habitats; VN-Acb Mis -- IFC-00535908; Poverty Assessment; Health Monitoring&Evaluation; Poverty Lines;

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