Social minimum living standard in Russia: estimation methods

2021 ◽  
Vol 17 (2) ◽  
pp. 192-203
Author(s):  
Lyudmila Migranova ◽  
Irina Korchagina
Keyword(s):  
Social Role ◽  
Poverty Line ◽  
Poverty Rate ◽  
Normal Function ◽  
Estimation Methods ◽  
Living Standard ◽  
Median Income ◽  
Absolute Poverty ◽  
Poor Households ◽  
Per Capita

The minimum living standard of the population in Russia since 1992 is subsistence minimum (SM). It plays a significant social role as a criterion for the assessment of the need of households for social assistance. The methods for SM calculating were periodically changed, but the rate of absolute poverty was always measured by the share of the population with income below SM. The article considers in detail the methods for estimating SM, adopted in 2013 and based on normative-statistical approach. Analysis of the food consumption and the structure of consumer spending of poor households, based on Household Budget Survey 2012-2019, revealed their non-compliance with the SM that was effective up to and including 2020. Since 2021 estimation of poverty is made by statistical methods without calculating minimum consumer basket (Law № 473-ФЗ as of 29.12.2020). The poverty line is determined by the ratio to median income per capita, and the poverty rate is of relative character. Retrospective analysis of the dynamics in the per capita and median incomes of the RF population and the SM per capita for 2013-2020 makes it possible to estimate the difference in the rates of absolute and relative poverty and to understand what guided the developers of the law in determining the SM per capita at 44.2% of the median income and the value of SM for the main sociodemographic groups of the population for the year 2021. In addition, on concrete examples, by means of the logarithmic normal function used by Rosstat for calculation of the population income distribution, it is shown, at what ratio of the median income to the average, the rate of absolute poverty may be reduced by half as compared to 2019

scholarly journals The Study on Poverty Reduction Effects of Chinese Urban Minimum Living Standard Guarantee System—Empirical Analysis Based on CHIP 2002 and 2007

2020 ◽  
Vol 3 (2) ◽  
pp. p1
Author(s):  
Chen Zongsheng ◽  
Wen Wen
Keyword(s):  
Urban Area ◽  
Poverty Reduction ◽  
Poverty Line ◽  
Poverty Rate ◽  
Living Standard ◽  
Poor People ◽  
Absolute Poverty ◽  
Relative Poverty ◽  
Guarantee System ◽  
Poverty Lines

The Chinese urban minimum living-standard guarantee system, mainly functions to guarantee the poor people to have minimum living-standard life; at same time it can make some people to get rid of poverty by some poverty lines. But how much of the rates can be reduced? What differences among provinces, and what impact on all kind of families? The paper tries to answer these questions by using Chinese Household Income Project (CHIP) 2002 and 2007, taking international poverty line, minimum living standard line, Martin’s poverty line and relative poverty line respectively to measure the poverty reduction impact of urban minimum living standard guarantee. On the whole, the urban minimum living standard guarantee is effective to alleviate absolute poverty and even part of relative poverty. For example, taking international poverty line as standard, in 2002 the urban minimum living guarantee respectively decreased absolute poverty rate, poverty gap and squared poverty gap of national urban area by 4.58%, 11.41% and 16.32%, while in 2007 decreased respectively by 47.24%, 70.87% and 83.04%. Taking relative poverty line as standard, in 2002 respectively poverty rate, poverty gap and squared poverty gap of national urban area decreased by 1.92%, 4.65% and 8.37%, while in 2007 the 3 indices reached by 3.28%, 11.63% and 22.57% respectively, but which are lower than by international poverty line. On the whole, according to different poverty lines and indices, the urban citizen in different provinces and families gained different poverty reduction effects brought by the urban minimum living standard guarantee.

scholarly journals Exploring the health-relevant poverty line: a study using the data of 663,000 individuals in Japan

2019 ◽  
Vol 18 (1) ◽  
Author(s):  
Takashi Oshio
Keyword(s):  
Health Outcomes ◽  
Population Health ◽  
Poverty Line ◽  
Poverty Rate ◽  
Specific Reference ◽  
Income Poverty ◽  
Median Income ◽  
Binary Variable ◽  
Cross Sectional ◽  
Daily Life Activities

Abstract Background Income poverty is known to be associated with poor health outcomes. However, the poverty line, which is used to calculate the poverty rate, is arbitrarily set without specific reference to health. This study explored the health-relevant poverty line to understand poverty in terms of population health. Methods Using repeated cross-sectional data from approximately 663,000 individuals obtained from 11 waves of nationwide population surveys conducted in Japan from 1986 to 2016, we used two methods to calculate a health-relevant poverty line: (1) We searched for a poverty line that maximized the proportion-weighted relative underperformance in health among individuals whose income was below the poverty line (Method I). (2) We searched for a poverty line that maximized the likelihood of the logistic regression model to explain poverty in terms of health using a binary variable for below-the-poverty-line income (Method II). For both methods, we considered five health outcomes: Poor/fair and poor self-rated health, subjective symptoms, problems with daily life activities, and psychological distress, along with covariates. Results Methods I and II indicated that the health-relevant poverty line should be drawn, respectively, at 72–86% and 67–69% of median income; this level is somewhat higher than the conventional 50% or 60%. Conclusions The results suggest that there is a risk that the conventionally defined poverty line may underestimate poverty in terms of population health.

Measuring Poverty: Context-Specific but not Relative

2010 ◽  
Vol 30 (3) ◽  
pp. 241-262 ◽  
Author(s):  
KRISTIAN NIEMIETZ
Keyword(s):  
Low Cost ◽  
National Level ◽  
Well Being ◽  
Poverty Line ◽  
Developed Countries ◽  
Median Income ◽  
Subjective Well Being ◽  
Absolute Poverty ◽  
The Poor ◽  
Context Specific

AbstractPoverty in developed countries is commonly defined in relative terms. It is argued that a relative definition formalises the insight that poverty is a context-specific phenomenon, and that the understanding of what constitutes poverty changes with overall economic development. Yet this article argues that tagging a poverty line to mean or median incomes does not automatically anchor it in its social context. Relative measures rely on the implicit assumptions that social norms are formed at the national level, and that median income earners set social standards. A comparison with studies on ‘Subjective Well-Being’ (SWB) shows that these assumptions are rather arbitrary. At the same time, relative indicators do not take account of changes in the product market structure that disproportionately affect the poor. If low-cost substitutes for expensive items become available, the poor will be relatively more affected than median income earners. Conventional ‘absolute poverty’ indicators will be equally dismissed for not solving these problems either. A combined ‘Consensual Material Deprivation’ and ‘Budget Standard Approach’ indicator will be proposed as a more robust alternative.

Anti-Poverty Effectiveness

2018 ◽  
Author(s):  
Qin Gao
Keyword(s):  
Income Inequality ◽  
General Population ◽  
Rural Areas ◽  
Poverty Line ◽  
Median Income ◽  
Minimal Effect ◽  
Absolute Poverty ◽  
Relative Poverty ◽  
Poverty Lines ◽  
Urban And Rural Areas

Chapter 5 investigates Dibao’s anti-poverty effectiveness. The chapter shows that, based on various poverty lines and across urban and rural areas, Dibao’s anti-poverty effectiveness is limited and at best modest, largely due to its targeting errors and gaps in benefit delivery. Dibao is more effective in reducing the depth and severity of poverty than it is the rate of poverty, and its anti-poverty effectiveness is greater among recipients than in the general population. Dibao’s influence on reducing poverty is larger when a lower poverty line is used and smaller when a higher poverty line is used. Because relative poverty lines are often set relative to the median income in society and tend to be much higher than the more widely used absolute poverty lines, Dibao’s effects on reducing relative poverty are particularly limited. Dibao has had minimal effect on narrowing the income inequality gap in society.

scholarly journals Family Hope Program Evaluation in Poverty Alleviation: Benefit Incidence Analysis

2020 ◽  
Vol 9 (1) ◽  
pp. 97-110
Author(s):  
Luthfi Faishal Azhar ◽  
Lilis Siti Badriah ◽  
Bambang Bambang
Keyword(s):  
Program Implementation ◽  
Poverty Alleviation ◽  
Poverty Line ◽  
Primary Data ◽  
Benefit Incidence Analysis ◽  
Poor Households ◽  
The Family ◽  
Effective Program ◽  
Per Capita ◽  
Incidence Analysis

This research was conducted in the Cigalontang Sub-district, Tasikmalaya Regency, West Java Province. This study aims to analyze: (1) the accuracy of the Family Hope Program in achieving its goals, (2) the characteristics of the Family Hope Program policies in poverty alleviation (pro-poor, progressive, or regressive), (3) the effectiveness of the Family Hope Program implementation. The number of respondents consisted of 195 Beneficiary Families of the Family Hope Program . This study uses primary data, which were collected using interview and questionnaire methods. This study uses analysis methods in the form of Proportion Analysis, Benefit Incidence Analysis, and Appraisal Effectiveness Program. Based on the results of the study, it can be concluded that : (1) The pattern of the Family Hope Program acceptance in the Cigalontang Sub-district is right on target. Because the proportion of the population with income below the poverty line per capita receives the most benefits from the Family Hope Program according to the target, namely, very-poor households. (2) The Family Hope Program in the Cigalontang Sub-district is Pro-Poor, (3) The Family Hope Program in the Cigalontang Sub-district is classified as an effective program.

scholarly journals IMPACT OF EDUCATION TO HEAD OF HOUSEHOLD IN INDONESIA

2018 ◽  
Vol 3 (01) ◽  
pp. 1
Author(s):  
Maudytia Rismalasari Prabowo ◽  
Dominicus Savio Priyarsono ◽  
Mutiara Probokawuryan
Keyword(s):  
Cross Section ◽  
Household Head ◽  
Poverty Line ◽  
Jel Classification ◽  
Least Square ◽  
Living Standard ◽  
Two Stage ◽  
Independent Variables ◽  
Per Capita ◽  
The Impact

<span class="fontstyle0">Poverty is one of the most crucial problems in Indonesia which is the fifth city in South-East Asia, have a poverty line around 11.2% in 2014 (BPS 2016). Moreover, poverty in Indonesia has decreased slowly from 2000 (19.1%) until 2016 (10.9%) (Smeru, 2015). It means poverty in Indonesia should be accelerated the decline. One of the things that can reduce poverty is education (Gounder and Xing 2012). Education has a relationship with household consumption per capita. That means, the higher the education of household head, the higher the consumption per capita that household get. The aim of this study is to analyze the impact of education on poverty as measured by household's consumption in West Indonesia in 2014. This study uses Two-Stage Least Square (2SLS) methods with cross-section data and obtained from IFLS (Indonesia Family Life Survey). The result shows that there is a relationship between education and other independent variables on poverty. The independent variables that significantly affect poverty are age, age squared, gender, and marital status. The implication of this study is education can increase the number of consumption per capita so that the living standard will increase and poverty will decrease.<br /><br /></span><span class="fontstyle2">JEL Classification: </span><span class="fontstyle0">I20, I21, I25<br /><br /></span><span class="fontstyle2">Keywords</span><span class="fontstyle0">: consumption per capita, cross section, education, Two Stage Least Square, poverty.</span>

Locating the “poverty threshold” in Russia

2018 ◽  
pp. 104-127 ◽  
Author(s):  
E. D. Slobodenyuk ◽  
V. A. Anikin
Keyword(s):  
Family Income ◽  
The Elderly ◽  
Poverty Line ◽  
Median Income ◽  
Absolute Poverty ◽  
Subsistence Level ◽  
Relative Poverty ◽  
Economic Determinants ◽  
Poverty Threshold ◽  
The Poor

The present paper focuses on identification of relative “poverty line” and a threshold of high poverty risks. The paper also studies key poverty factors in contemporary Russia. It demonstrates that the relative approach to poverty which is widely used in Western countries is applicable in Russia too. However, the relative poverty thresholds set at 0.5 and 0.75 medians per capita family income identify quite different groups of the poor. The threshold of 0.5 median income indicates deep poverty happened mostly to the unemployed workforce. The relative poverty threshold equal to 0.75 median income identifies the poverty of the elderly who are not considered as the poor by the absolute approach because pensions of Russians have been recently equalized to the subsistence level. Above all, the paper provides econometric estimates of socio-economic determinants of both absolute and relative poverty. It was revealed that the relative deep poverty of the working population was primarily caused by “bad” jobs rather than by “bad” human capital. Absolute poverty of workers is more or less determined by both factors.

scholarly journals Poverty in Karachi: Incidence, Location, Characteristics, and Upward Mobility

1993 ◽  
Vol 32 (2) ◽  
pp. 159-178
Author(s):  
Mir Anjum Altaf ◽  
Aly Ercelawn ◽  
Kaiser Bengali ◽  
Abdul Raidm
Keyword(s):  
Upward Mobility ◽  
Indirect Evidence ◽  
Poverty Line ◽  
Downward Mobility ◽  
Absolute Poverty ◽  
Mobility Data ◽  
The Poor ◽  
Poor Households ◽  
Tentative Evidence ◽  
Residential Movement

The paper examines the incidence and spatial distribution of poverty in Karachi, Pakistan. Based on a survey of 6000 households, it locates the clusters of poverty and presents a profile of the poor in the city. Just over one-third of the households in Karachi can be classified as poor, based on an absolute poverty line derived from standard consumption norms. Poverty is concentrated in six geographical clusters, which account for 60 percent of the sample households but 90 percent of the very poor households. Analysis of residential movement is used to derive some indirect evidence of socioeconomic mobility. This suggests that, historically, the incidence of upward mobility amongst the poor in Karachi, based partly on the acquisition of skills and education, has been quite high. Poverty in Karachi has not been endemic as a continuous influx of migrants at the bottom replaced those who moved up the economic ladder. The little evidence of downward mobility also identifies it as a more recent occurrence as compared to upward mobility. Data on education show that generational inequalities in educational attainments across different groups among the poor are not being perpetuated over time. At the same time, an analysis of investment in the education of children suggests some very tentative evidence of a possible loss of faith in education as a mechanism for upward mobility. Such indicative evidence is of considerable value given the absence of panel data for most cities in developing countries.

scholarly journals Education as An Important Dimension of the Poverty

2017 ◽  
Vol 4 (3) ◽  
pp. 88
Author(s):  
Ruzhdie Bici ◽  
Mirësi Çela
Keyword(s):  
Poverty Reduction ◽  
Poverty Line ◽  
Education Level ◽  
Living Standard ◽  
Absolute Poverty ◽  
Financial Situation ◽  
Standard Measurement ◽  
Health Infrastructure ◽  
Basic Services ◽  
The Relationship

Poverty is an important phenomenon affecting individual and household life. It is important to know the factors that influence the possibility of being poor. An important cause and effect of poverty, one of the ones multidimensional nature of poverty is education level. Mostly, when we speak for the poverty, we based our estimates in the monetary terms, income or consumption. There are other dimensions like education, health, infrastructure, access in basic services, etc, that influence the economic and financial situation of the individuals. In Albania, to calculate the absolute poverty line is used the monetary poverty based on the consumption. The data refers to the Living Standard Measurement Survey (LSMS), which gives us the possibility to have multi indicators and also disaggregate and test the relationship and influence. The main objective of this paper is to analyze the influence of different indicators, mainly related with education and analyzing the influence on the poverty reduction. This research is based on Living Standard Measurement Survey (LSMS). This is a multidimensional survey collected near households and it collects information for living conditions, health, education, poverty, assets, migration etc. Is is used descriptive analyses and multinominal regression to analyse the trend on education and the significance on categories of different factors inluenced the education level. At the end we conclude that education is an influenced factors but also influence the poverty.

scholarly journals One Method to Improve the Official Poverty Line in Indonesia

2018 ◽  
Vol 6 (1) ◽  
pp. 39-52
Author(s):  
Carunia Mulya Firdausy
Keyword(s):  
Research Question ◽  
Group Discussion ◽  
Poverty Line ◽  
Absolute Poverty ◽  
Subjective Poverty ◽  
The Poor ◽  
Per Capita ◽  
The Government ◽  
Policies And Programs ◽  
Depth Interviews

Poverty is one of the long standing problems in Indonesia. Using the national absolute poverty line, itwas estimated that the proportion of the poor has declined from 40.1% in 1976 to 10.5% in 2014. However,many people claim that the above percentage of the poor is only true in terms of statistics. The poor argue thatthe amount of rupiah expenditure set as the ofcial poverty line is inadequate to fulfl their basic needs. Thispaper, based on a feld survey of 360 respondents of the poor and the non-poor in three villages in three different provinces located in the Eastern, Western and Central parts of Indonesia, aims at examining a methodto improve the national poverty line and to determine the minimum rupiah expenditure of the poverty lineusing a subjective approach. The method used to examine this research question is by - using questionnaires,Focus Group Discussion (FGD) and in depth interviews. Sample respondents were asked their perceptions onvariables, dimensions and indicators that should be accommodated in formulating the subjective poverty line.They were also questioned about the minimum rupiah expenditure threshold to defne the subjective povertyline. The study found that the ofcial poverty line that has been determined by the government was far belowthe subjective poverty line that was defned by the respondents. Also, the variables, dimension and indicatorsthat should be accommodated in the national poverty line should not only be food items, but also access toemployment, housing, health and education for children. The minimum rupiah expenditure of the povertyline was argued to be more than Rp 500 000 equal to US$40 per capita per month. This minimum rupiahexpenditure of the subjective poverty line is almost double that of the ofcial poverty line set at the average ofRp 300 000 or US$24 per capita per month. Therefore, the government not only needs to revise the presentpoverty line, but also needs to revise policies and programs to eliminate poverty by taking into account thedimension and variables of poverty viewed by the poor and the non-poor. If not, the incidence of poverty willremain with us.

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