For citation:
Sekicki-Pavlenko, O. O. (2025). Structural Changes in Consumer Spending of Low-Income Households in Russia. AlterEconomics, 22(4), 753–770. https://doi.org/10.31063/AlterEconomics/2025.22-4.11
Abstract:
The structure of household consumer spending is a key indicator of living standards, and household final consumption impacts a country’s GDP. In this regard, the consumer spending issues of the most vulnerable households are crucial; without taking them into account, it is impossible to implement effective social and economic policies. The study aims to identify structural shifts in consumer spending among low-income households. It compares household spending between Q1 2021 and Q1 2024, highlights the key goods and services shaping consumption, and assesses the similarities and differences in these structural changes. The study draws on data from the statistical bulletin “Household Income, Expenditure and Consumption” published by the Russian Federal Statistics Service (Rosstat). The types of low-income households were established by Rosstat during a survey of household budgets. The study employed comparative analysis and a formalization method to calculate the Gatev and Ryabtsev coefficients. Across all five socio-demographic household types, spending on food, healthcare, leisure, and dining out increased, while spending on information and communication declined. The majority of consumer spending (56–70 %) is allocated to food, housing, and transportation. The greatest structural changes were observed in households with many children and those with disabilities, whereas the smallest changes occurred in non-working pensioner households. The study’s contribution lies in identifying the characteristics of structural shifts in low-income households’ consumer spending. Its practical significance stems from the potential use of these findings to improve social and economic policy.
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