Targeting Housing Allowances in Russia

Abstract

Abstract This analysis addresses the coverage and targeting performance of Russia's housing allowance programme, a programme characterized by very substantial decentralization in programme administration. Coverage in the five sample cities is generally low. Targeting of benefits in these cities – measured either by the distribution of participants or benefits by income quintile – is very strong, comparing favorably with the record of social assistance programmes in many countries. Importantly, targeting is found to depend significantly on local programme administration. Moreover, local economic conditions are found to be highly correlated with programme generosity and administrative practices: comparatively prosperous cities fund allowance more generously and have administrative practices that encourage participation of low income households in particular. This is occurring even though most funding for allowances now comes from regional governments. A general conclusion is the importance of including loca...