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...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| 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 |
| Summary: | 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. |
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