Social block for CGE on Russia: model choices, data and other issues

1. Social block for CGE on Russia:model choices, data and other issues Irina Denisova Center for Economic Policy Research at the New Economic School

2. Role of social sector Deterioration of environmental conditions → → effective leisure → effective labor → health sector (increased demand)

3. Model choices • Utility function: labor/leisure decision or consumption goods only? • Labor force participation is very high, both males and females • Working hours are to a large extent predetermined (large formal sector) • (healthy) leisure and healthy labor as outcomes when health consequences are considered • How health sector is introduced? • Public health care expenditures • Expenditures of households on health care • Model unemployment? • Keeps being low (at natural rate?) • Regional variation (2-digit in southern federal region) • A device to take into account health consequences • Prices in labor markets are demand driven with low bargaining power of employees. Adjustment via wages. No effective wage floor • In the medium and long-run: demographic trends are to increase relative price of labor • LM segmentation: regional and sectoral wage differentials and rents (noncompetitive environment )

4. Data • Household consumption data • Household budget survey data (Rosstat) • National households survey of welfare and social programs’ participation (NOBUS) • Russian Longitudinal Monitoring Survey (RLMS) • Labor market data • Labor force survey (Rosstat, no wages) • RLMS • Demographic data • Census, demographic tables based on registration data • Health data • Administrative data from health care sector (WHO) • RLMS • NOBUS (2003) • WHO (standartised health expenditure)

5. Labor force survey (Обследование населения по проблемам занятости) • Started in 1992 (Rosstat), 600 ths individuals in 1992-1994, 160-170ths in 1995-1998 (0.15% of population 15-72 years old), 260ths since 1999 (cumulatively) • Reference period – a week. Annual survey in 1992-1998, quarterly since 1999 (65 ths each quarter) • Representative survey based on census and microcensus; not intersecting quarterly samples • Very detailed questionnaire on labor market status. No information on wages and earnings • Labor market indicators are based on the survey. ILO/BLS definitions used. • Micro data are not publicly available

6. Household budget survey (Обследование бюджетов домашних хозяйств) • Quarterly household survey (Rosstat), 50ths households • Rotating nationally representative sample • Detailed information on expenditures and transfers (diary collection) • The basis for aggregate income and expenditure statistics, for poverty and income inequality estimates • Micro data are not publicly available (except 2003-2006)

7. Russian Longitudinal Monitoring Survey (Всероссийский мониторинг экономического положения и здоровья населения) • Household survey, started in 1992 (actively used from round 5) • UNC PC, Demoscope and Institute of sociology • 16 rounds, annual (October-December), with exception of 1997 and 1999 • Nationally representative data, panel structure (attrition problem), 5 ths households (11 ths adults) • Very detailed information on income and expenditure • Detailed information on labor market status of adults • Large block on health and health services

8. National households survey of welfare and social programs’ participation (NOBUS) • Done by Rosstat in April-May 2003 • 45 thousand households • Nationally and regionally (for 46 Russian regions) representative • Household part of the questionnaire has detailed questions on household composition, household income, including benefits, and expenditures. • Individual part of the questionnaire provides detailed information on the labor market status of adult household members