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Credit and income mobility in Russia

Author

Listed:
  • David Aristei

    (University of Perugia)

  • Cristiano Perugini

    (University of Perugia)

Abstract

This paper investigates the microeconomic drivers of short-term income mobility in Russia over the period 1994–2018, focusing on the role of access to credit in triggering household income growth. Controlling for a large set of household-level characteristics and accounting for endogeneity, we provide robust evidence on the positive and significant impact of credit on income growth. We also find that the pro-mobility effect of access to credit is heterogeneous both over time and across household characteristics. Our empirical evidence corroborates the idea that the beneficial impact of credit on income mobility mainly occurs through channels related to the labour market, particularly an increase in labour supply at the intensive margin in the short run and at both the extensive and intensive margins in the longer run.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:joecin:v:20:y:2022:i:3:d:10.1007_s10888-022-09525-x
    DOI: 10.1007/s10888-022-09525-x
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    1. Lara Lebedinski & Cristiano Perugini & Marko Vladisavljević, 2023. "Child penalty in Russia: evidence from an event study," Review of Economics of the Household, Springer, vol. 21(1), pages 173-215, March.

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    More about this item

    Keywords

    Income mobility; Credit access; Russia; RLMS;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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