Poverty in the Russian Federation

Abstract:     
This paper is intended to shed light on the extent of poverty in the Russian Federation. We present estimates of poverty lines and poverty ratios derived from subjective questions used in a during data collection for a large household panel (RUSSET). We estimate poverty using a subjective approach, where the level of the poverty line is derived using the opinion of the individual, rich or poor, on poverty. This approach differs from the objective approach to poverty, which defines poverty according to the opinion of experts. Three subjective poverty lines are presented: one the Financial Satisfaction Poverty Line, two the Leyden Poverty Line, and three the Subjective Well-Being Poverty Line. The first two poverty lines are based on 'subjective' questions regarding income and economic welfare while the last concept focuses on satisfaction with life as a whole. The results obtained are compared with each other and with results derived using 'objective' measures and official figures.

Number of Pages in PDF File: 36

Keywords: Poverty, subjective poverty, Leyden approach, well-being, financial satisfaction, Russian Federation

JEL Classification: C21, D31, D60, I32

working papers series