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Changes in household composition as a shock-mitigating strategy

Author

Listed:
  • Kseniya Abanokova

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

  • Michael Lokshin

    (World Bank and National Research University Higher School of Economics (Moscow, Russia). “Centre for Labour Market Studies (CLMS)”)

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.

Suggested Citation

  • Kseniya Abanokova & Michael Lokshin, 2013. "Changes in household composition as a shock-mitigating strategy," HSE Working papers WP BRP 38/EC/2013, National Research University Higher School of Economics.
    • Handle: RePEc:hig:wpaper:38/ec/2013
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    File URL: http://www.hse.ru/data/2013/11/08/1282031759/38EC2013.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Polina Kozyreva & Klara Sabirianova Peter, 2015. "Economic change in Russia: Twenty years of the Russian Longitudinal Monitoring Survey," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 23(2), pages 293-298, April.
    2. Gatskova, Kseniia & Kozlov, Vladimir, 2019. "Doubling Up or Moving Out? The Effect of International Labour Migration on Household Size," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 58(2), pages 162-179.
    3. Stephanie von Hinke & George Leckie, 2017. "Protecting Calorie Intakes against Income Shocks," Bristol Economics Discussion Papers 17/684, School of Economics, University of Bristol, UK.

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    More about this item

    Keywords

    household structure; coping strategy; macroeconomic shocks; Russia;
    All these keywords.

    JEL classification:

    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General

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