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The impact of income mobility on the change of income inequality in Russia

Citation

Bogomolova, Tatyana; Tapilina, Vera S.; & Rostovtsev, P. Simonovich (2002). The impact of income mobility on the change of income inequality in Russia.

Abstract

Liberal economic reforms in Russia were accompanied with substantial decrease in average living standards and growth of socioeconomic differentiation. To solve the problem of inequality growth efficient socioeconomic policy has to be based on full and adequate understanding of formation of inequality: in what group of population (low-income, middle-income, high-income) does income change make the largest contribution to the change in income inequality. The objective of this study is to reveal the relation between income changes and inequality changes in their distribution in Russia in the 90s. We proceed from the assumption that income mobility is transformation mechanism of income inequality: each object having income contributes to income inequality and income change (mobility), which, simultaneously, can make the change of its contribution to inequality. Depending on the domination of mobility of different income groups, it is possible to distinguish some types of inequality dynamics (polarization, one-pole dynamics, convergence, lack of inequality dynamics). We suppose that over one and the same time period, mobility of some population groups increases inequality, while others - decreases. Consequently, inequality change is the result of interaction of exactly these opposite trends. Information base of the study is the data of the Russian Longitudinal Monitoring Survey (RLMS) over the period 1994-1998. During 1994-1998 in Russia one could observe three types of inequality dynamics: 1994-1995 - 'zero' dynamics; 1995-1996 - polarization; 1996-1998 - 'convergence.'.

Reference Type

Conference Paper

Year Published

2002

Author(s)

Bogomolova, Tatyana
Tapilina, Vera S.
Rostovtsev, P. Simonovich