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Welfare Dynamics and Inequality in the Russian Federation During 1994–2015

Author

Listed:
  • Hai-Anh H. Dang

    (World Bank
    Indiana University
    Vietnam Academy of Social Sciences)

  • Michael M. Lokshin

    (World Bank)

  • Kseniya Abanokova

    (National Research University)

  • Maurizio Bussolo

    (World Bank)

Abstract

Russia offers a unique example of a centrally planned economy swiftly transforming itself into a market-oriented economy. We offer a comprehensive study of inequality and mobility patterns for Russia, using multiple rounds of the Russian Longitudinal Monitoring Surveys over the past two decades spanning this transition. We find rising income levels and decreasing inequality, with the latter being mostly caused by pro-poor growth rather than redistribution. The poorest tercile experienced a growth rate that was more than 10 times that of the richest tercile, leading to less long-term inequality than short-term inequality. We also find that switching from a part-time job to a full-time job, from a lower-skill job to a higher-skill job or staying in the formal sector is statistically significantly associated with reduced downward mobility and income growth. However, a transition from the private sector to the public sector is negatively associated with income growth.

Suggested Citation

  • Hai-Anh H. Dang & Michael M. Lokshin & Kseniya Abanokova & Maurizio Bussolo, 2020. "Welfare Dynamics and Inequality in the Russian Federation During 1994–2015," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(4), pages 812-846, September.
    • Handle: RePEc:pal:eurjdr:v:32:y:2020:i:4:d:10.1057_s41287-019-00241-3
    DOI: 10.1057/s41287-019-00241-3
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    1. Dang,Hai-Anh H. & Lokshin,Michael M. & Abanokova,Ksenia & Bussolo,Maurizio, 2018. "Inequality and Welfare Dynamics in the Russian Federation during 1994-2015," Policy Research Working Paper Series 8629, The World Bank.
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    Cited by:

    1. David Aristei & Cristiano Perugini, 2022. "Credit and income mobility in Russia," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(3), pages 639-669, September.
    2. Dang, Hai-Anh H & Abanokova, Kseniya, 2022. "Do Gender, Child, and Parent Characteristics Contribute to Intergenerational Subjective Well-Being Mobility? Evidence from Russia during 1994-2019," IZA Discussion Papers 15244, Institute of Labor Economics (IZA).
    3. Dang, Hai-Anh H & Abanokova, Kseniya & Lokshin, Michael, 2020. "Life Satisfaction, Subjective Wealth, and Adaptation to Vulnerability in the Russian Federation during 2002-2017," IZA Discussion Papers 13058, Institute of Labor Economics (IZA).
    4. Chi‐Chur Chao & Mong Shan Ee & Xuan Nguyen & Eden S. H. Yu, 2022. "Minimum wage, firm dynamics, and wage inequality: Theory and evidence​," International Journal of Economic Theory, The International Society for Economic Theory, vol. 18(3), pages 247-271, September.
    5. Hai-Anh H. Dang & Kseniya Abanokova & Michael M. Lokshin, 2023. "Life Satisfaction, Subjective Wealth, and Adaptation to Vulnerability in the Russian Federation during 2002-2019," Hacienda Pública Española / Review of Public Economics, IEF, vol. 247(4), pages 125-153, December.
    6. Vladimir Otrachshenko & Olga Popova, 2022. "Does Weather Sharpen Income Inequality in Russia?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(S1), pages 193-223, April.
    7. Kseniya Abanokova & Hai-Anh H. Dang, 2023. "Poverty in Russia: a bird’s-eye view of trends and dynamics in the past quarter of a century," Chapters, in: Jacques Silber (ed.), Research Handbook on Measuring Poverty and Deprivation, chapter 58, pages 627-635, Edward Elgar Publishing.
    8. Alexeev, Michael & Zakharov, Nikita, 2022. "Who profits from windfalls in oil tax revenue? Inequality, protests, and the role of corruption," Journal of Economic Behavior & Organization, Elsevier, vol. 197(C), pages 472-492.
    9. T. M. Maleva & M. A. Kartseva & P. O. Kuznetsova & A. A. Salmina, 2021. "Does the Application of Alternative Methods Change the Pattern of Regional Inequality in Russia?," Regional Research of Russia, Springer, vol. 11(1), pages 18-28, January.
    10. Hai-Anh H. Dang & Michael M. Lokshin & Kseniya Abanokova, 2019. "Did the Poor Adapt to Their Circumstances? Evidence from Long-run Russian Panel Data," Economics Bulletin, AccessEcon, vol. 39(4), pages 2258-2274.
    11. Kseniya Abanokova & Hai‐Anh H. Dang & Michael Lokshin, 2022. "Do Adjustments for Equivalence Scales Affect Poverty Dynamics? Evidence from the Russian Federation during 1994–2017," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(S1), pages 167-192, April.

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    More about this item

    Keywords

    Welfare dynamics; Poverty; Inequality; Pro-poor growth; Panel data; Household surveys; Russia;
    All these keywords.

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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