Report - UNDP Russia

various sectors. Inter-sectoral payrolldifferentiation is determined both bydistinctions in the economic status of varioussectoral groups with differing economicsignificance and by differing competitivenessof their outputs. Raising of minimum wagesand pensions led to growth in income levelsof the poor, so that income differencenarrowed in the third quarter of 2009,despite the crisis.Changes in incomes and inequalityhave caused changes in the poverty rate (Figure3.3), which has been subject to largefluctuations since market reforms began. In1992, after price liberalization, one third ofRussia’s population qualified as poor. There wassteady decline in the poverty rate after 2001and it had declined by half in 2007 comparedwith 2000. The current crisis has already led to0.9 p.p. growth of the poverty rate in Q1 2009compared with Q1 2008, representing anFigure 3.3Poverty rate in Russia4540355.95.34.85.04.5increase in the number of poor people in Russiaby 1.5 million.It is highly important to identify whichsocial groups are most vulnerable to the risk ofpoverty and tend to be particularly poor, andwhich groups make up the greatest share of thepoor. Specifics of the ‘poverty profile’ for Russiaare amply presented in the literature 6 and can besummarized as follows:• Risk of poverty is twice higher than thenational average for families with children(and for children as such, aged under 16).This risk of poverty increases in proportionto the number of children in the household,and single-parent families are more likely tobe poor;• Rural populations are more vulnerable topoverty;• Pensioner households (either a singlepensioner or couples) are twice less likely tobe in poverty than the national average;65Poverty rate, %302520153.33.83.12.83.53.72.62.1 2.11.61.3432Income deficit, %1051033.531.5 22.4 24.7 22.0 20.7 23.3 28.3 29.0 27.5 24.6 20.3 17.6 17.7 15.2 13.4 13.1 16.3 17.41992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Q12008Those living in poverty as % of total populationCash income deficit as % of total personal cash incomesQ120090Sources: Russia in Numbers. 2004; Statistical Digest / Federal Statistics Service, M, 2004; pp.99-100; Russia in Numbers. 2004; StatisticalDigest / Federal Statistics Service, M, 2004; p. 100; Social Situation and Living Standards in Russia, 2007. Statistical Digest/Rosstat –M, 2007, p.144.6(1) Poverty and Inequality in Russia: Correlation between Poverty and Inequality Indicators and the Method of Measuring HouseholdProsperity Indexes. Illustration based on NOBUS data / E.Teslyuk, L.Ovcharova. Gen. edit. R.Yemtsov – M, Alex, 2007, pp.17-19(2) Incomes and Social Services: Inequality, Vulnerability, Poverty. Edited by L.Ovcharova, NISP – M, HSE Publishing House, 2005 – p.348(3) Survey of Russia’s Social Policy: Early 2000s, T.Maleva et al, Independent Institute for Social Policy – M, IISP, 200758 National Human Development Report in the Russian Federation 2009