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

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

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 )

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)

Labor force survey ( Обследование населения по проблемам занятости ) Started in 1992 (Rosstat), 600 ths individuals in , ths in (0.15% of population years old), 260ths since 1999 (cumulatively) Reference period – a week. Annual survey in , 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

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 )

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

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