The Important Role of Equivalence Scales : Household Size, Composition, and Poverty Dynamics in the Russian Federation

Hardly any literature exists on the relationship between equivalence scales and poverty dynamics for transitional countries. This paper offers a new study on the impacts of equivalence scale adjustments on poverty dynamics in the Russian Federation...

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Main Authors: Abanokova, Kseniya, Dang, Hai-Anh H., Lokshin, Michael M.
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
Online Access:http://documents.worldbank.org/curated/en/713071591281684390/The-Important-Role-of-Equivalence-Scales-Household-Size-Composition-and-Poverty-Dynamics-in-the-Russian-Federation
http://hdl.handle.net/10986/33872
id okr-10986-33872
recordtype oai_dc
spelling okr-10986-338722022-09-20T00:12:08Z The Important Role of Equivalence Scales : Household Size, Composition, and Poverty Dynamics in the Russian Federation Abanokova, Kseniya Dang, Hai-Anh H. Lokshin, Michael M. POVERTY MEASUREMENT POVERTY DYNAMICS EQUIVALENCE SCALE PANEL SURVEY POVERTY LINE Hardly any literature exists on the relationship between equivalence scales and poverty dynamics for transitional countries. This paper offers a new study on the impacts of equivalence scale adjustments on poverty dynamics in the Russian Federation, using equivalence scales constructed from subjective wealth and more than 20 waves of household panel survey data from the Russia Longitudinal Monitoring Survey. The analysis suggests that the equivalence scale elasticity is sensitive to household demographic composition. The adjustments for the equivalence of scales result in lower estimates of poverty lines. The study decomposes poverty into chronic and transient components and finds that chronic poverty is positively related to the adult scale parameter. However, chronic poverty is less sensitive to the child scale factor compared with the adult scale factor. Interestingly, the direction of income mobility might change depending on the specific scale parameters that are employed. The results are robust to different measures of chronic poverty, income expectations, reference groups, functional forms, and various other specifications. 2020-06-11T14:31:54Z 2020-06-11T14:31:54Z 2020-06 Working Paper http://documents.worldbank.org/curated/en/713071591281684390/The-Important-Role-of-Equivalence-Scales-Household-Size-Composition-and-Poverty-Dynamics-in-the-Russian-Federation http://hdl.handle.net/10986/33872 English Policy Research Working Paper;No. 9270 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Europe and Central Asia Russian Federation
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic POVERTY MEASUREMENT
POVERTY DYNAMICS
EQUIVALENCE SCALE
PANEL SURVEY
POVERTY LINE
spellingShingle POVERTY MEASUREMENT
POVERTY DYNAMICS
EQUIVALENCE SCALE
PANEL SURVEY
POVERTY LINE
Abanokova, Kseniya
Dang, Hai-Anh H.
Lokshin, Michael M.
The Important Role of Equivalence Scales : Household Size, Composition, and Poverty Dynamics in the Russian Federation
geographic_facet Europe and Central Asia
Russian Federation
relation Policy Research Working Paper;No. 9270
description Hardly any literature exists on the relationship between equivalence scales and poverty dynamics for transitional countries. This paper offers a new study on the impacts of equivalence scale adjustments on poverty dynamics in the Russian Federation, using equivalence scales constructed from subjective wealth and more than 20 waves of household panel survey data from the Russia Longitudinal Monitoring Survey. The analysis suggests that the equivalence scale elasticity is sensitive to household demographic composition. The adjustments for the equivalence of scales result in lower estimates of poverty lines. The study decomposes poverty into chronic and transient components and finds that chronic poverty is positively related to the adult scale parameter. However, chronic poverty is less sensitive to the child scale factor compared with the adult scale factor. Interestingly, the direction of income mobility might change depending on the specific scale parameters that are employed. The results are robust to different measures of chronic poverty, income expectations, reference groups, functional forms, and various other specifications.
format Working Paper
author Abanokova, Kseniya
Dang, Hai-Anh H.
Lokshin, Michael M.
author_facet Abanokova, Kseniya
Dang, Hai-Anh H.
Lokshin, Michael M.
author_sort Abanokova, Kseniya
title The Important Role of Equivalence Scales : Household Size, Composition, and Poverty Dynamics in the Russian Federation
title_short The Important Role of Equivalence Scales : Household Size, Composition, and Poverty Dynamics in the Russian Federation
title_full The Important Role of Equivalence Scales : Household Size, Composition, and Poverty Dynamics in the Russian Federation
title_fullStr The Important Role of Equivalence Scales : Household Size, Composition, and Poverty Dynamics in the Russian Federation
title_full_unstemmed The Important Role of Equivalence Scales : Household Size, Composition, and Poverty Dynamics in the Russian Federation
title_sort important role of equivalence scales : household size, composition, and poverty dynamics in the russian federation
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/713071591281684390/The-Important-Role-of-Equivalence-Scales-Household-Size-Composition-and-Poverty-Dynamics-in-the-Russian-Federation
http://hdl.handle.net/10986/33872
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