Voronin G. L., Kozyreva P. M., Kosolapov M. S., Nizamova A. E., Sivkova I. V., Smirnov A. I., Sokolova S. B., Tonis E. I., Evgrafova K. O. Socio-Economic Behavior of Russian Households in 1994–2020. In: Bulletin of the Russian monitoring of the economic situationand public health of the Higher School of Economics (RLMS ‑ HSE). Issue 12 [Electronicresource]: Sat. scientific. Art. ...

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Abstract

This paper uses data from “Russia Longitudinal Monitoring Survey – Higher School of Economics” (RLMS-HSE) to analyze the socio-economic condition of Russian households at the end of the first year of the COVID-19 pandemic. In 2020, an average real household income plunged by 30.4%, with work-related income falling by 31.3% and income from government transfers by 29%. However, there was no increase in income inequality on the household level. In 2020, the top 20 percent of households continued to earn 2.6 times more than the bottoms 20 percent. Household expenditures decreased by 30% in 2020. It was the most significant decline in household expenditures between 1994 and 2020. The spending gap between the top and the bottom 20 percent of households widened. Compared to low-income families, well-off households spent 4.7 times more in 2019 and 5.1 times more in 2020. The unemployment rate fell from 3.6% to 3.4%. The workforce participation rate also declined from 81.5 to 80.9% of the adult population. The number of workers who had wage arrears increased from 1.1 to 2.5%. The share of retirees failing to receive their monthly pension payments rose from 2.6 to 6.5% among men and from 2.8 to 4.1% among women. Although there was little change both in general life satisfaction and satisfaction with the families’ economic security, the proportion of those who reported declining living standards went up from 21.3 to 28.8%, while the share of those who believed that the living standards of their families would improve next year dropped from 21.8 to 15.9%. The proportion of respondents who felt anxious about losing their jobs rose from 61.0 to 63.9%. Moreover, more people felt uncertain about their chances to find a new job had they lost the current one. It is against this backdrop the level of job satisfaction hit 71.9%. Although low wages remained the leading cause of discontent at the workplace, the overall satisfaction with the pay level increased.

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