Inequality and Volatility Moderation in Russia: Evidence from Micro-Level Panel Data on Consumption and Income

We construct key household and individual economic variables using a panel micro data set from the Russia Longitudinal Monitoring Survey (RLMS) for 1994-2005. We analyze cross-sectional income and consumption inequality and find that inequality decreased during the 2000-2005 economic recovery. The decrease appears to be driven by falling volatility of transitory income shocks. The response of consumption to permanent and transitory income shocks becomes weaker later in the sample, consistent with greater self-insurance against permanent shocks and greater smoothing of transitory shocks. Comparisons of RLMS data with official macroeconomic statistics reveal that national accounts may underestimate the extent of unofficial economic activity, and that the official consumer price index may overstate inflation and be prone to quality bias.transition, inequality, income, consumption, Russia

Inequality and Volatility Moderation in Russia: Evidence from Micro-Level Panel Data on Consumption and Income

We construct key household and individual economic variables using a panel micro data set from the Russia Longitudinal Monitoring Survey (RLMS) for 1994-2005. We analyze cross-sectional income and consumption inequality and find that inequality decreased during the 2000-2005 economic recovery. The decrease appears to be driven by falling volatility of transitory income shocks. The response of consumption to permanent and transitory income shocks becomes weaker later in the sample, consistent with greater self-insurance against permanent shocks and greater smoothing of transitory shocks. Comparisons of RLMS data with official macroeconomic statistics reveal that national accounts may underestimate the extent of unofficial economic activity, and that the official consumer price index may overstate inflation and be prone to quality bias

Inequality and Volatility Moderation in Russia: Evidence from Micro-Level Panel Data on Consumption and Income

We construct key household and individual economic variables using a panel micro data set from the Russia Longitudinal Monitoring Survey (RLMS) for 1994-2005. We analyze cross-sectional income and consumption inequality and find that inequality decreased during the 2000-2005 economic recovery. The decrease appears to be driven by falling volatility of transitory income shocks. The response of consumption to permanent and transitory income shocks becomes weaker later in the sample, consistent with greater self-insurance against permanent shocks and greater smoothing of transitory shocks. Comparisons of RLMS data with official macroeconomic statistics reveal that national accounts may underestimate the extent of unofficial economic activity, and that the official consumer price index may overstate inflation and be prone to quality bias.

Technological Progress and the Earnings of Older Workers

Economists’ standard model assumes that improvements in total factor productivity (TFP) raise the marginal product of labor for all workers evenly. This paper uses an earnings dynamics regression model to study whether, in practice, older workers benefit less from TFP growth than younger workers. We utilize panel earnings data from the Social Security Administration’s Continuous Work History Sample. The data include workers of all ages, and we use annual figures for 1950-2004. Our first specification relies on BLS measurements of TFP. Our second model develops a new TFP measure using a principal components analysis. We find that although the earnings of younger workers track TFP growth 1-for-1, the earnings of older workers do not: we find, for example, that a 60-year-old male’s earnings grow only 85-90% as fast as TFP. Nevertheless, our analysis implies that in an economy with an aging labor force, gains from experience tend to outweigh older workers’ inability to benefit fully from TFP improvements.Social Security Administrationhttp://deepblue.lib.umich.edu/bitstream/2027.42/102260/1/wp280.pd

Macroeconomic Determinants of Retirement Timing

We analyze lifetime earnings histories of white males during 1960-2010 and categorize the labor force status of every worker as either working full-time, partially retired or fully retired. We find that the fraction of partially retired workers has risen dramatically (from virtually zero to 15 percent for 60-62 year olds), and that the duration of partial retirement spells has been steadily increasing. We estimate the response of retirement timing to variations in unemployment rate, inflation and house prices. Flows into both full and partial retirement increase significantly when the unemployment rate rises. Workers around normal retirement age are especially sensitive to variations in unemployment rate. Workers who are partially retired show a differential response to high unemployment rate: younger workers increase their partial retirement spell, while older workers accelerate their transition to full retirement. We also find that high inflation discourages full-time work and encourages partial and full retirement. House prices do not have a significant impact on retirement timing.Social Security Administrationhttp://deepblue.lib.umich.edu/bitstream/2027.42/102261/1/wp281.pd

Online magnetization surface identification for a switched reluctance motor

The precise control of switched reluctance motor requires information about the magnetization surface as a function of rotor angular position and current. The surface can be obtained performing offline tests; however, it demands specialized mechanical equipment and time for commissioning. Moreover, the magnetization surface may be changed with the varying of the rotor and stator temperatures, which affect their dimensions and, therefore, the airgap variation. That is why the online estimation of the magnetization surface is desirable. This paper proposes the identification method operating in parallel with the model predictive current control system utilizing the magnetization map. Any error between the referenced and obtained currents is used to correct the reference points of the two-dimensional array representing the magnetization surface. The proposed method was examined using a simulation model and operated online in parallel with the primary control system driving the electrical machine

Code and data files for "Inequality and Volatility Moderation in Russia: Evidence from Micro-Level Panel Data on Consumption and Income"

This file describes the data, results and procedures used in the article. Stata code and data used in tables and figures are included.