The dynamics of deprivation poverty among the Russian population and its linkages to monetary poverty
DOI:
https://doi.org/10.17308/econ.2025.4/13358Keywords:
ow-income individuals, poverty indicators, deprivations, poverty lineAbstract
Subject. Deprivation poverty, defined as the insufficiency of resources to meet generally accepted consumption standards, is considered a complement to the monetary definition of poverty (where per capita income falls below the poverty line). This approach allows for the identification of persistent forms of social vulnerability.
Purpose. To determine the level and changes in deprivation poverty among the Russian population in recent years and to analyze the dynamic relationship between monetary and deprivation poverty.
Methodology. The empirical foundation comprises microdata from the sample survey of quality and accessibility of education, healthcare, social services and employment promotion (CLIs) for 2017-2023. A set of deprivations for defining poverty was proposed and its consistency tested. We also constructed two indicators: an additive deprivation poverty indicator (reflecting four or more deprivations out of ten), and an integral deprivation index calculated using principal component analysis. Regression analysis was performed on the dynamics of the relationship between deprivations and absolute income poverty.
Results. Over the seven-year period, deprivation poverty decreased significantly, reaching 8% in 2023. The number of income-poor individuals also substantially declined, and the linkage between deprivation and monetary poverty weakened. The sphere of extreme vulnerability, where people experience both types of poverty simultaneously, contracted notably.
Conclusions. The proposed set of deprivation indicators remains consistent and can serve as a basis for defining poverty. Despite the existing discrepancies between monetary and deprivation-based poverty measurements, non-monetary indicators provide valuable supplementary information about living standards and should be applied in practice.
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References
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