Changes in Household Composition as a Shock-Mitigating Strategy

20 Pages Posted: 7 Nov 2013 Last revised: 8 Nov 2013

See all articles by Kseniya Abanokova

Kseniya Abanokova

National Research University Higher School of Economics

Michael Lokshin

World Bank - Development Research Group (DECRG); National Research University Higher School of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: November 7, 2013

Abstract

This paper uses data from the Russian Longitudinal Survey that span the two recent economic recessions of 1998 and 2008 to study the effect of declining incomes on household composition. We hypothesize that individuals face a tradeoff between taking advantages of economies of scale and specialization when living with others and individual privacy. Consumption smoothing is achieved by forgoing privacy during a crisis and results in an increase in household size. Our empirical results suggest that members of the households that experienced negative income shocks are more likely to move in with others than households whose income remained the same or increased.

Keywords: household structure, coping strategy, macroeconomic shocks, Russia

JEL Classification: J10

Suggested Citation

Abanokova, Kseniya and Lokshin, Michael, Changes in Household Composition as a Shock-Mitigating Strategy (November 7, 2013). Higher School of Economics Research Paper No. WP BRP 38/EC/2013. Available at SSRN: https://ssrn.com/abstract=2351216 or http://dx.doi.org/10.2139/ssrn.2351216

Kseniya Abanokova (Contact Author)

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Michael Lokshin

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
202-473-1772 (Phone)
202-522-1153 (Fax)

HOME PAGE: http://econ.worldbank.org/staff/mlokshin

National Research University Higher School of Economics

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
30
Abstract Views
451
PlumX Metrics