Conference e-mail

The Aleksanteri Institute

Unioninkatu 33 (P.O. Box 42)
00014 University of Helsinki

Past Aleksanteri Conferences

Ekaterina Slobodenyuk (National Research University Higher School of Economics, Moscow, Russia)

Factors of Absolute and Subjective Poverty in Modern Russia

The article is dedicated to the issue of subjective poverty predictors and answers the question whether the main factors of absolute poverty lead to subjective poverty as well. The choice of the topic is due to the actualization of the issue of changing social policy from categorical to targeted and reducing the burden on the state budget, stably raised in the conditions of economic crisis. It is supposed that subjective approach may be used to improve the methodology of determining group of the poor for the purposes of social policy. The paper describes the main factors of absolute poverty according to the literature review and tests them using binary logit regressions for both cases of absolute and subjective poverty. Based on logit regressions it is shown that the typical factors of absolute poverty do not lead to subjective poverty. The group of the subjectively poor is formed by representatives of all income groups of the modern Russian society. The paper also demonstrates the difference between two analyzed phenomenons basing on econometric and substantive analysis. It is concluded that the subjective and absolute poverty are the different phenomena, subjective approach to poverty can not be directly used for the purposes of social policy.