Ukraine Poverty Update

Ukraine recorded one of the sharpest declines in poverty of any transition economy in recent years. The poverty rate, measured against an absolute poverty line, fell from a high of 32 percent in 2001 to 14 percent in 2004, and then again to 8 perce...

Full description

Bibliographic Details
Main Author: World Bank
Format: Policy Note
Language:English
en_US
Published: Washington, DC 2014
Subjects:
TAX
Online Access:http://documents.worldbank.org/curated/en/2007/06/8427445/ukraine-poverty-update
http://hdl.handle.net/10986/19244
Description
Summary:Ukraine recorded one of the sharpest declines in poverty of any transition economy in recent years. The poverty rate, measured against an absolute poverty line, fell from a high of 32 percent in 2001 to 14 percent in 2004, and then again to 8 percent in 2005. This Update presents simulations of the direct influence of an increase in energy prices on the poverty rate. Using 2005 as a base period, the simulations estimate the poverty rates that might result from alternative increases in the price of energy. In this simple model, the main determinant of the impact of the increase in energy prices on poverty is the share of energy in total household expenditures. An increase in energy prices will harm the poor slightly more than the rich because the poor have a slightly higher share of energy in their expenditures.