Welfare Impacts of the 1998 Financial Crisis in Russia and the Response of the Public Safety Net
Article first published online: 10 JAN 2003
The European Bank for Reconstruction and Development 2000
Economics of Transition
Volume 8, Issue 2, pages 269–295, July2000
How to Cite
Lokshin, M. and Ravallion, M. (2000), Welfare Impacts of the 1998 Financial Crisis in Russia and the Response of the Public Safety Net. Economics of Transition, 8: 269–295. doi: 10.1111/1468-0351.00045
- Issue published online: 10 JAN 2003
- Article first published online: 10 JAN 2003
- Cited By
- financial crisis;
- household welfare;
- safety net;
- panel data.
We compare welfare indicators for a nationally-representative sample of Russians interviewed shortly after the 1998 financial crisis with data on the same people two years earlier. Both objective and subjective measures reveal a widespread, though not universal, deterioration in welfare. Current expenditures generally contracted more than incomes. Inequality fell. There were both gainers and losers at all levels. The safety net's response fell far short of what was needed to protect living standards, but it did help prevent even greater poverty. Even without better targeting, a modest expansion of the safety net could have prevented an increase in income poverty in the aftermath of the crisis.