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Income mobility in Russia (2000–2005)

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  • Lukiyanova, Anna
  • Oshchepkov, Aleksey

Abstract

Using the data from the Russian Longitudinal Monitoring Survey (RLMS), this paper investigates income mobility in Russia during the period of rapid economic growth (2000–2005). Employing a broad set of mobility indices, we show that there is much mobility in household incomes from one year to the next and over longer periods in Russia. Both relative and absolute mobility in Russia are significantly higher than in Western countries. We demonstrate that income growth in Russia was strongly pro-poor in 2000–2005. Incomes of the relatively poor were growing faster than incomes of the relatively rich. However, this inequality-reducing effect was almost exactly offset by changes in the relative positions of individuals and the overall reduction in cross-sectional inequality was merely modest.

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Bibliographic Info

Article provided by Elsevier in its journal Economic Systems.

Volume (Year): 36 (2012)
Issue (Month): 1 ()
Pages: 46-64

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Handle: RePEc:eee:ecosys:v:36:y:2012:i:1:p:46-64

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Keywords: Income inequality; Income mobility; Pro-poor growth; Russia;

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References

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  1. Fields, Gary S & Ok, Efe A, 1999. "Measuring Movement of Incomes," Economica, London School of Economics and Political Science, vol. 66(264), pages 455-71, November.
  2. Aivazian Sergey & Kolenikov Stanislav, 2001. "Poverty and Expenditure Differentiation of the Russian Population," EERC Working Paper Series 01-01e, EERC Research Network, Russia and CIS.
  3. Simon Commander & Andrei Tolstopiantenko & Ruslan Yemtsov, 1997. "Channels of Redistribution: Inequality and Poverty in the Russian Transition," William Davidson Institute Working Papers Series 42, William Davidson Institute at the University of Michigan.
  4. Niny Khor & John Pencavel, 2006. "Income Mobility of Individuals In China and the United States," Discussion Papers 05-009, Stanford Institute for Economic Policy Research.
  5. Jovanovic, Branko, 2001. "Russian Roller Coaster: Expenditure Inequality and Instability in Russia, 1994-98," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(2), pages 251-71, June.
  6. Ding, Ning & Wang, Yougui, 2008. "Household income mobility in China and its decomposition," China Economic Review, Elsevier, vol. 19(3), pages 373-380, September.
  7. Buckley, Robert M & Gurenko, Eugene N, 1997. "Housing and Income Distribution in Russia: Zhivago's Legacy," World Bank Research Observer, World Bank Group, vol. 12(1), pages 19-32, February.
  8. Mitra, Pradeep & Yemtsov, Ruslan, 2006. "Increasing inequality in transition economies : is there more to come?," Policy Research Working Paper Series 4007, The World Bank.
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  10. Lokshin, Michael & Popkin, Barry M, 1999. "The Emerging Underclass in the Russian Federation: Income Dynamics, 1992-1996," Economic Development and Cultural Change, University of Chicago Press, vol. 47(4), pages 803-29, July.
  11. Jarvis, Sarah & Jenkins, Stephen P, 1998. "How Much Income Mobility Is There in Britain?," Economic Journal, Royal Economic Society, vol. 108(447), pages 428-43, March.
  12. Jenkins, Stephen P. & Van Kerm, Philippe, 2003. "Trends in income inequality, pro-poor income growth and income mobility," IRISS Working Paper Series 2003-11, IRISS at CEPS/INSTEAD.
  13. Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December.
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  15. Frank Cowell & Christian Schluter, 1998. "Income mobility : a robust approach," LSE Research Online Documents on Economics 2210, London School of Economics and Political Science, LSE Library.
  16. Luis Ayala & Mercedes Sastre, 2008. "The structure of income mobility: empirical evidence from five UE countries," Empirical Economics, Springer, vol. 35(3), pages 451-473, November.
  17. Irina Denisova, 2007. "Entry to and Exit from Poverty in Russia: Evidence from Longitudinal Data," Working Papers w0098, Center for Economic and Financial Research (CEFIR).
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Citations

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Cited by:
  1. Aleksandra Kolasa, 2012. "Life cycle income and consumption patterns in transition," National Bank of Poland Working Papers 133, National Bank of Poland, Economic Institute.
  2. Larin, Alexander & Novak, Anna & Khvostova, Irina, 2013. "Consumption dynamics in Russia: Estimates on microdata," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 32(4), pages 29-44.
  3. Kapelyuk Sergey, 2014. "Impact of minimum wage on income distribution and poverty in Russia," EERC Working Paper Series 14/03e, EERC Research Network, Russia and CIS.

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