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Income Inequality and Oligarchs in Russian Regions: A Note

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  • Jarko Fidrmuc
  • Lidwina Gundacker

Abstract

We trace the rise of the so called oligarchs in post-Soviet Russia and examine their relationship to income distribution in Russia. When Russia moved to a market economy in the 1990s a new business elite evolved. Russia’s distinctive path towards market economy, among other factors, gave rise to the oligarchs who now control large parts of the economy and have a strong standing within politics and society. Using a unique regional data set on the locations of oligarchs’ businesses across the Russian regions, we test Acemoglu’s (2008) proposition that oligarchic societies experience extreme income inequality. Our results show significantly higher levels of income inequality in regions with a higher presence of oligarchs.

Suggested Citation

  • Jarko Fidrmuc & Lidwina Gundacker, 2017. "Income Inequality and Oligarchs in Russian Regions: A Note," CESifo Working Paper Series 6449, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_6449
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    References listed on IDEAS

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    More about this item

    Keywords

    Russia; oligarchs; entrepreneurship; privatization; inequality;

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • P25 - Economic Systems - - Socialist Systems and Transition Economies - - - Urban, Rural, and Regional Economics
    • P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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