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Income mobility in Russia (2000–2005)

  • Lukiyanova, Anna
  • Oshchepkov, Aleksey

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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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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  1. 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.
  2. Lokshin Michael & Ravallion Martin, 2004. "Household Income Dynamics in Two Transition Economies," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 8(3), pages 1-33, September.
  3. 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.
  4. 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.
  5. Flemming, J.S. & Micklewright, John, 2000. "Income distribution, economic systems and transition," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 14, pages 843-918 Elsevier.
  6. Jenkins, Stephen P. & Van Kerm, Philippe, 2003. "Trends in Income Inequality, Pro-Poor Income Growth and Income Mobility," IZA Discussion Papers 904, Institute for the Study of Labor (IZA).
  7. 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.
  8. 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).
  9. Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December.
  10. 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.
  11. 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.
  12. 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.
  13. Ding, Ning & Wang, Yougui, 2008. "Household income mobility in China and its decomposition," China Economic Review, Elsevier, vol. 19(3), pages 373-380, September.
  14. 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.
  15. Mitra, Pradeep & Yemtsov, Ruslan, 2006. "Increasing inequality in transition economies : is there more to come?," Policy Research Working Paper Series 4007, The World Bank.
  16. 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.
  17. 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.
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