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Inequality and Volatility Moderation in Russia: Evidence from Micro-Level Panel Data on Consumption and Income

Author

Listed:
  • Yuriy Gorodnichenko

    (University of California, Berkeley)

  • Klara Sabirianova Peter

    (Georgia State University)

  • Dmitriy Stolyarov

    (University of Michigan)

Abstract

We construct key household and individual economic variables using a panel micro data set from the Russia Longitudinal Monitoring Survey (RLMS) for 1994-2005. We analyze cross-sectional income and consumption inequality trends and find that inequality decreased during the 2000-2005 economic recovery. The decrease appears to be driven by falling volatility of transitory income shocks. The response of consumption to permanent and transitory income shocks becomes weaker later in the sample, consistent with greater self-insurance against permanent shocks and greater smoothing of transitory shocks. Finally, expenditure and income inequality in Russia are not far apart. (Copyright: Elsevier)

Suggested Citation

  • Yuriy Gorodnichenko & Klara Sabirianova Peter & Dmitriy Stolyarov, 2010. "Inequality and Volatility Moderation in Russia: Evidence from Micro-Level Panel Data on Consumption and Income," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(1), pages 209-237, January.
    • Handle: RePEc:red:issued:09-198
    DOI: 10.1016/j.red.2009.09.006
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    More about this item

    Keywords

    Inequality; Income; Consumption; Transition; Russia;
    All these keywords.

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General

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