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The Distributional Consequences during the Early Stages of Russia's Transition

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  • Doyle, Chris

Abstract

The author considers the distributional consequences at a national level in Russia during the initial phase of market reforms between the mid-1980s and the early 1990s. Although the incomes of many individuals changed favorably under the reforms during this period, average real household per capita income declined between 1985 and 1992. In particular, during the first year of major reform in 1992 households at the lower end of the income distribution seemed to incur the largest fall in income. As a consequence, there was a rise in measured income inequality. The Gini coefficient, estimated by various researchers to have been around 27 percent between the late 1960s and early 1990s, the author estimates to have increased to 32.2 percent by the end of 1992. He also estimates that poverty increased, with 18.5 percent of the population on incomes lying below the official subsistence level at the end of 1992. Copyright 1996 by The International Association for Research in Income and Wealth.

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Bibliographic Info

Article provided by International Association for Research in Income and Wealth in its journal Review of Income & Wealth.

Volume (Year): 42 (1996)
Issue (Month): 4 (December)
Pages: 493-505

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Handle: RePEc:bla:revinw:v:42:y:1996:i:4:p:493-505

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  1. Polterovich, Victor, 1993. "Rationing, Queues, and Black Markets," Econometrica, Econometric Society, vol. 61(1), pages 1-28, January.
  2. Atkinson,Anthony Barnes & Micklewright,John, 1992. "Economic Transformation in Eastern Europe and the Distribution of Income," Cambridge Books, Cambridge University Press, number 9780521438827, October.
  3. Dewatripont, M & Roland, G, 1992. "Economic Reform and Dynamic Political Constraints," Review of Economic Studies, Wiley Blackwell, vol. 59(4), pages 703-30, October.
  4. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June.
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Cited by:
  1. Wan, Guanghua, 2002. "Income Inequality and Growth in Transition Economies: Are Nonlinear Models Needed?," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  2. Muhammad Shahbaz, 2010. "Income inequality-economic growth and non-linearity: a case of Pakistan," International Journal of Social Economics, Emerald Group Publishing, vol. 37(8), pages 613-636, July.
  3. Muhammad, Shahbaz & Faridul, Islam & Muhammad Sabihuddin, Butt, 2011. "Devaluation and income inequality: Evidence from Pakistan," MPRA Paper 35522, University Library of Munich, Germany, revised 21 Dec 2011.
  4. John Flemming & John Micklewright, 1999. "Income Distribution, Economic Systems and Transition," Innocenti Occasional Papers, Economic Policy Series iopeps99/69, UNICEF Innocenti Research Centre.

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