Labour and Poverty in Russia Self-Rated Perceptions and Monetary Evaluations

Abstract

This paper contributes to the understanding of poverty determinants in Russia. We analyzed two methods of poverty measurement: the monetary one in absolute terms and the self-rated subjective measure. We compare these two approaches in order to understand the main differences between being poor and feeling poor. A particular attention was paid to various forms of employment status on the Russian labour market and their impact on poverty. Using five waves of RLMS (Russia Longitudinal Monitoring Survey, 1994-2000) individual panel data we conclude that working in undeclared additional activities (informal sector) helps individuals to avoid monetary poverty and even feel richer in spite of instability of informal sector. Individuals, having only one declared activity, have the highest probability to be poor and to feel poor.