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A Decomposition Analysis of Regional Poverty in Russia

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  • Stanislav Kolenikov
  • Anthony Shorrocks

Abstract

The paper applies a new decomposition technique to the study of variations in poverty across the regions of Russia. The procedure, which is based on the Shapley value in cooperative game theory, allows the deviation in regional poverty levels from the all-Russia average to be attributed to three proximate sources: per capita income, inequality, and local prices. Contrary to expectation, regional poverty variations turn out to be due more to differences in inequality across regions than to differences in real income per capita. However, when real income per capita is split into nominal income and price components, differences in nominal incomes emerge as more important than either inequality or price effects for the majority of regions. Copyright United Nations University 2005.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of Development Economics.

Volume (Year): 9 (2005)
Issue (Month): 1 (02)
Pages: 25-46

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Handle: RePEc:bla:rdevec:v:9:y:2005:i:1:p:25-46

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  1. Hartmut Lehmann & Jonathan Wadsworth, 2001. "Wage Arrears and the Distribution of Earnings in Russia," William Davidson Institute Working Papers Series 421, William Davidson Institute at the University of Michigan.
  2. Klugman, Jeni & Braithwaite, Jeanine, 1998. "Poverty in Russia during the Transition: An Overview," World Bank Research Observer, World Bank Group, vol. 13(1), pages 37-58, February.
  3. Mikheeva Nadezhda, 1999. "Differentiation of Social and Economic Situation in the Russian Regions and Problems of Regional Policy," EERC Working Paper Series 99-09e, EERC Research Network, Russia and CIS.
  4. Kloek, Teun & van Dijk, Herman K., 1978. "Efficient estimation of income distribution parameters," Journal of Econometrics, Elsevier, vol. 8(1), pages 61-74, August.
  5. Simon Commander & Andrei Tolstopiatenko & Ruslan Yemtsov, 1999. "Channels of redistribution: Inequality and poverty in the Russian transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(2), pages 411-447, July.
  6. Milanovic, Branko & Jovanovic, Branko, 1999. "Change in the perception of the poverty line during times of depression : Russia 1993-96," Policy Research Working Paper Series 2077, The World Bank.
  7. Yemtsov, Ruslan, 2003. "Quo Vadis? Inequality and Poverty Dynamics across Russian Regions," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  8. Daniel Berkowitz & David N. DeJong, 2002. "Integration: An Empirical Assessment of Russia," William Davidson Institute Working Papers Series 488, William Davidson Institute at the University of Michigan.
  9. Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April.
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