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Regular version of the site

Book chapter

Факторы относительной и абсолютной бедности

С. 273-293.

The chapter focuses on the specifics of poverty, captured by different methodologies. There are 2 groups under analysis - population with incomes a) less than 1 PM and b) less than 0.5 times the median per capita incomes. Econometric analysis (logit regression) is used to identify impoverishment factors in each case, and descriptive statistics is used to describe portraits of the groups.

The relative poverty line (0.5 median per capita income) cuts a significantly smaller share of the poor (6% of the population) than absolute methodology (25%). All the features characteristic of Russian poverty are more pronounced here than among the absolutely poor. Relatively poor often occupy positions, to a lesser extent guaranteeing their labor rights. As a result they more often lose their jobs during economic recessions, face forced exit on unpaid leave, reduction (or delay) of wages, etc. This situation is probably explained by the concentration of relative poverty in rural areas wich characterises by a weaker and smaller labour market than in urban types of settlements.

Based on the analysis, author comes to the conclusion that the relative poverty line of 0.5 times the median per capita incomes is not the poverty line in its traditional sense, but a 'deep poverty line'. Russian poverty is not limited to this gropup and is really widespread much more widely.