Channels of Redistribution: Inequality and Poverty in the Russian Transition
Davidson Institute Working Paper Series No. 42
Posted: 29 Sep 1997
Date Written: May 1997
The paper uses a large household dataset -- the Russia Longitudinal Monitoring survey -- to measure inequality and poverty in Russia since the start of transition in 1992. What emerges is that inequality had already emerged by 1992 and has grown subsequently. By 1996 the Gini for Russia was nearly 0.5 indicating that inequality was now comparable to, for example, Mexico or Malaysia. The paper looks at the factors accounting for the level and change in inequality. It continues to look at income mobility across the six rounds of the household dataset. It finds evidence of significant movement across income quintiles. The paper then turns to examining the evolution of poverty and poverty transitions. It shows that the incidence of poverty was very large in 1992 but has subsequently declined. Finally, the paper combines this information in a model of restructuring and transition that can be calibrated.
JEL Classification: J23, J32, P31
Suggested Citation: Suggested Citation