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Inequality and volatility moderation in Russia: evidence from micro-level panel data on consumption and income

Citation

Gorodnichenko, Yuriy; Peter, Klara Sabirianova; & Stolyarov, Dmitriy (2010). Inequality and volatility moderation in Russia: evidence from micro-level panel data on consumption and income. Review of Economic Dynamics, 13(1), 209-237.

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.

URL

http://dx.doi.org/10.1016/j.red.2009.09.006

Reference Type

Journal Article

Year Published

2010

Journal Title

Review of Economic Dynamics

Author(s)

Gorodnichenko, Yuriy
Peter, Klara Sabirianova
Stolyarov, Dmitriy