Relative Poverty Measurement by Equivalent Income

Abstract

-In the article results of the relative poverty measurement by equivalent income for households of Volga Federal District in the Russian Federation are presented. Using equivalence scales, the authors estimate equivalent incomes and distribute households in the form of the stratification scale. Based on the research, the following conclusions are made. The majority of households in almost all regions belong to the lowermiddle class (second group), but not to the middle class (third group). Percentage is different for these regions, but on average, it is 38.9 %. Only two regions: the Republic of Mordovia and the Republic of Udmurtia, have more households in the third group which refers to the middle class. In almost all regions of Volga Federal District, the percentage of households below the relative poverty line is less than 10 %. In all regions, the proportion of households in the upper-middle and upper class together does not exceed 30% of the whole sample. The third hypothesis is confirmed.