Subjective Perceptions of the Impact of the Global Economic Crisis in Europe and Central Asia : The Household Perspective

This paper analyzes the subjective impact of the global economic crisis on households in Europe and Central Asia and relates subjective impacts to consumption, actual shocks, and coping strategies, using the 2010 Life in Transition Survey. Two-thir...

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Main Authors:	Bidani, Benu, Diagne, Mame Fatou, Zaidi, Salman
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	AGGREGATE CONSUMPTION ASSISTANCE PROGRAMS BORROWING CHILD SUPPORT COPING STRATEGIES CURRENT CONSUMPTION DEVELOPMENT ECONOMICS ECONOMIC ACTIVITY ECONOMIC BEHAVIOR ECONOMIC CRISIS ECONOMIC GROWTH ECONOMIC PERSPECTIVES ECONOMICS EMPLOYMENT STATUS FARM PRODUCTS FEMALE FEMALE-HEADED HOUSEHOLDS FINANCIAL CRISIS FOOD CONSUMPTION FOOD PRICE GOVERNMENT BENEFITS HEALTH EXPENDITURE HEALTH EXPENDITURES HEALTH INSURANCE HEALTH SPENDING HOUSEHOLD BUDGET HOUSEHOLD BUDGET SURVEYS HOUSEHOLD CHARACTERISTICS HOUSEHOLD CONSUMPTION HOUSEHOLD DATA HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD LEVEL HOUSEHOLD MEMBERS HOUSEHOLD SIZE HOUSEHOLD SURVEYS HOUSEHOLD WELFARE HOUSING IMPACT ON POVERTY INCOME INCOME CHANGES INCOME LOSS INCOME SUPPORT INEQUALITY INFORMAL INSURANCE INFORMAL INSURANCE MECHANISMS INFORMAL TRANSFERS JOB LOSS JOB-LOSS LABOR FORCE LABOR MARKET LABOR SUPPLY LABOUR MEASURED CONSUMPTION MINIMUM INCOME MOBILITY PENSIONS PER CAPITA CONSUMPTION POOR POOR HOUSEHOLDS POVERTY INCIDENCE POVERTY REDUCTION PRIVATE SAFETY NETS PUBLIC SAFETY PUBLIC SAFETY NETS RECESSIONS RENTS RURAL RURAL ASSETS SAFETY NET SAVINGS SHOCK SOCIAL ASSISTANCE SOCIAL EXCLUSION SOCIAL INSURANCE SOCIAL SAFETY NETS TARGETING TRANSITION COUNTRIES UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT INSURANCE UNIVERSAL BENEFITS VULNERABLE HOUSEHOLDS WAGES WORKING HOURS
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120312135856 http://hdl.handle.net/10986/3283

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spelling	okr-10986-32832021-04-23T14:02:08Z Subjective Perceptions of the Impact of the Global Economic Crisis in Europe and Central Asia : The Household Perspective Bidani, Benu Diagne, Mame Fatou Zaidi, Salman AGGREGATE CONSUMPTION ASSISTANCE PROGRAMS BORROWING CHILD SUPPORT COPING STRATEGIES CURRENT CONSUMPTION DEVELOPMENT ECONOMICS ECONOMIC ACTIVITY ECONOMIC BEHAVIOR ECONOMIC CRISIS ECONOMIC GROWTH ECONOMIC PERSPECTIVES ECONOMICS EMPLOYMENT STATUS FARM PRODUCTS FEMALE FEMALE-HEADED HOUSEHOLDS FINANCIAL CRISIS FOOD CONSUMPTION FOOD PRICE GOVERNMENT BENEFITS HEALTH EXPENDITURE HEALTH EXPENDITURES HEALTH INSURANCE HEALTH SPENDING HOUSEHOLD BUDGET HOUSEHOLD BUDGET SURVEYS HOUSEHOLD CHARACTERISTICS HOUSEHOLD CONSUMPTION HOUSEHOLD DATA HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD LEVEL HOUSEHOLD MEMBERS HOUSEHOLD SIZE HOUSEHOLD SURVEYS HOUSEHOLD WELFARE HOUSING IMPACT ON POVERTY INCOME INCOME CHANGES INCOME LOSS INCOME SUPPORT INEQUALITY INFORMAL INSURANCE INFORMAL INSURANCE MECHANISMS INFORMAL TRANSFERS JOB LOSS JOB-LOSS LABOR FORCE LABOR MARKET LABOR SUPPLY LABOUR MEASURED CONSUMPTION MINIMUM INCOME MOBILITY PENSIONS PER CAPITA CONSUMPTION POOR POOR HOUSEHOLDS POVERTY INCIDENCE POVERTY REDUCTION PRIVATE SAFETY NETS PUBLIC SAFETY PUBLIC SAFETY NETS RECESSIONS RENTS RURAL RURAL ASSETS SAFETY NET SAVINGS SHOCK SOCIAL ASSISTANCE SOCIAL EXCLUSION SOCIAL INSURANCE SOCIAL SAFETY NETS TARGETING TRANSITION COUNTRIES UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT INSURANCE UNIVERSAL BENEFITS VULNERABLE HOUSEHOLDS WAGES WORKING HOURS This paper analyzes the subjective impact of the global economic crisis on households in Europe and Central Asia and relates subjective impacts to consumption, actual shocks, and coping strategies, using the 2010 Life in Transition Survey. Two-thirds of respondents in Europe and Central Asia report their household was subjectively affected, primarily through the labor market. The findings underscore the limitations of cross-country comparisons of subjective perceptions, due to reporting biases. Within countries, richer households felt a decline in their relative income position, consistent with evidence from household budget surveys that the crisis reduced the consumption of the middle and upper classes. But the analysis also finds that poorer households report being (subjectively) affected by the crisis more. Differences in the feasibility of coping strategies may help explain variations in subjective perceptions: the poorest were forced to reduce their staple food consumption and health spending, and tended to depend on public safety nets. Richer households had more options to cope, pursuing so-called "active strategies" (such as increasing their labor supply), borrowing, and cutting spending on non-essentials. Transition countries differed significantly from western European comparator countries in that public safety nets had lower coverage, private safety nets and informal insurance mechanisms could not meet the shortfall in income, and a large proportion of their populations reduced the consumption of basic necessities. The paper finds subjective perceptions of the impact of the crisis to be relevant to socio-political outcomes: the harder the impact, the lower the life satisfaction level and the more negative the assessment of government performance. 2012-03-19T17:29:42Z 2012-03-19T17:29:42Z 2012-03-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120312135856 http://hdl.handle.net/10986/3283 English Policy Research working paper ; no. WPS 5995 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Europe and Central Asia Europe and Central Asia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	AGGREGATE CONSUMPTION ASSISTANCE PROGRAMS BORROWING CHILD SUPPORT COPING STRATEGIES CURRENT CONSUMPTION DEVELOPMENT ECONOMICS ECONOMIC ACTIVITY ECONOMIC BEHAVIOR ECONOMIC CRISIS ECONOMIC GROWTH ECONOMIC PERSPECTIVES ECONOMICS EMPLOYMENT STATUS FARM PRODUCTS FEMALE FEMALE-HEADED HOUSEHOLDS FINANCIAL CRISIS FOOD CONSUMPTION FOOD PRICE GOVERNMENT BENEFITS HEALTH EXPENDITURE HEALTH EXPENDITURES HEALTH INSURANCE HEALTH SPENDING HOUSEHOLD BUDGET HOUSEHOLD BUDGET SURVEYS HOUSEHOLD CHARACTERISTICS HOUSEHOLD CONSUMPTION HOUSEHOLD DATA HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD LEVEL HOUSEHOLD MEMBERS HOUSEHOLD SIZE HOUSEHOLD SURVEYS HOUSEHOLD WELFARE HOUSING IMPACT ON POVERTY INCOME INCOME CHANGES INCOME LOSS INCOME SUPPORT INEQUALITY INFORMAL INSURANCE INFORMAL INSURANCE MECHANISMS INFORMAL TRANSFERS JOB LOSS JOB-LOSS LABOR FORCE LABOR MARKET LABOR SUPPLY LABOUR MEASURED CONSUMPTION MINIMUM INCOME MOBILITY PENSIONS PER CAPITA CONSUMPTION POOR POOR HOUSEHOLDS POVERTY INCIDENCE POVERTY REDUCTION PRIVATE SAFETY NETS PUBLIC SAFETY PUBLIC SAFETY NETS RECESSIONS RENTS RURAL RURAL ASSETS SAFETY NET SAVINGS SHOCK SOCIAL ASSISTANCE SOCIAL EXCLUSION SOCIAL INSURANCE SOCIAL SAFETY NETS TARGETING TRANSITION COUNTRIES UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT INSURANCE UNIVERSAL BENEFITS VULNERABLE HOUSEHOLDS WAGES WORKING HOURS
spellingShingle	AGGREGATE CONSUMPTION ASSISTANCE PROGRAMS BORROWING CHILD SUPPORT COPING STRATEGIES CURRENT CONSUMPTION DEVELOPMENT ECONOMICS ECONOMIC ACTIVITY ECONOMIC BEHAVIOR ECONOMIC CRISIS ECONOMIC GROWTH ECONOMIC PERSPECTIVES ECONOMICS EMPLOYMENT STATUS FARM PRODUCTS FEMALE FEMALE-HEADED HOUSEHOLDS FINANCIAL CRISIS FOOD CONSUMPTION FOOD PRICE GOVERNMENT BENEFITS HEALTH EXPENDITURE HEALTH EXPENDITURES HEALTH INSURANCE HEALTH SPENDING HOUSEHOLD BUDGET HOUSEHOLD BUDGET SURVEYS HOUSEHOLD CHARACTERISTICS HOUSEHOLD CONSUMPTION HOUSEHOLD DATA HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD LEVEL HOUSEHOLD MEMBERS HOUSEHOLD SIZE HOUSEHOLD SURVEYS HOUSEHOLD WELFARE HOUSING IMPACT ON POVERTY INCOME INCOME CHANGES INCOME LOSS INCOME SUPPORT INEQUALITY INFORMAL INSURANCE INFORMAL INSURANCE MECHANISMS INFORMAL TRANSFERS JOB LOSS JOB-LOSS LABOR FORCE LABOR MARKET LABOR SUPPLY LABOUR MEASURED CONSUMPTION MINIMUM INCOME MOBILITY PENSIONS PER CAPITA CONSUMPTION POOR POOR HOUSEHOLDS POVERTY INCIDENCE POVERTY REDUCTION PRIVATE SAFETY NETS PUBLIC SAFETY PUBLIC SAFETY NETS RECESSIONS RENTS RURAL RURAL ASSETS SAFETY NET SAVINGS SHOCK SOCIAL ASSISTANCE SOCIAL EXCLUSION SOCIAL INSURANCE SOCIAL SAFETY NETS TARGETING TRANSITION COUNTRIES UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT INSURANCE UNIVERSAL BENEFITS VULNERABLE HOUSEHOLDS WAGES WORKING HOURS Bidani, Benu Diagne, Mame Fatou Zaidi, Salman Subjective Perceptions of the Impact of the Global Economic Crisis in Europe and Central Asia : The Household Perspective
geographic_facet	Europe and Central Asia Europe and Central Asia
relation	Policy Research working paper ; no. WPS 5995
description	This paper analyzes the subjective impact of the global economic crisis on households in Europe and Central Asia and relates subjective impacts to consumption, actual shocks, and coping strategies, using the 2010 Life in Transition Survey. Two-thirds of respondents in Europe and Central Asia report their household was subjectively affected, primarily through the labor market. The findings underscore the limitations of cross-country comparisons of subjective perceptions, due to reporting biases. Within countries, richer households felt a decline in their relative income position, consistent with evidence from household budget surveys that the crisis reduced the consumption of the middle and upper classes. But the analysis also finds that poorer households report being (subjectively) affected by the crisis more. Differences in the feasibility of coping strategies may help explain variations in subjective perceptions: the poorest were forced to reduce their staple food consumption and health spending, and tended to depend on public safety nets. Richer households had more options to cope, pursuing so-called "active strategies" (such as increasing their labor supply), borrowing, and cutting spending on non-essentials. Transition countries differed significantly from western European comparator countries in that public safety nets had lower coverage, private safety nets and informal insurance mechanisms could not meet the shortfall in income, and a large proportion of their populations reduced the consumption of basic necessities. The paper finds subjective perceptions of the impact of the crisis to be relevant to socio-political outcomes: the harder the impact, the lower the life satisfaction level and the more negative the assessment of government performance.
format	Publications & Research :: Policy Research Working Paper
author	Bidani, Benu Diagne, Mame Fatou Zaidi, Salman
author_facet	Bidani, Benu Diagne, Mame Fatou Zaidi, Salman
author_sort	Bidani, Benu
title	Subjective Perceptions of the Impact of the Global Economic Crisis in Europe and Central Asia : The Household Perspective
title_short	Subjective Perceptions of the Impact of the Global Economic Crisis in Europe and Central Asia : The Household Perspective
title_full	Subjective Perceptions of the Impact of the Global Economic Crisis in Europe and Central Asia : The Household Perspective
title_fullStr	Subjective Perceptions of the Impact of the Global Economic Crisis in Europe and Central Asia : The Household Perspective
title_full_unstemmed	Subjective Perceptions of the Impact of the Global Economic Crisis in Europe and Central Asia : The Household Perspective
title_sort	subjective perceptions of the impact of the global economic crisis in europe and central asia : the household perspective
publishDate	2012
url	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120312135856 http://hdl.handle.net/10986/3283
_version_	1764386728735408128

Subjective Perceptions of the Impact of the Global Economic Crisis in Europe and Central Asia : The Household Perspective

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