Welfare Dynamics and Inequality in the Russian Federation during 1994-2015

Forthcoming, European Journal of Development Research

50 Pages Posted: 17 Aug 2019

See all articles by Hai-Anh Dang

Hai-Anh Dang

World Bank- Development Data Group (DECDG)

Michael Lokshin

World Bank - Development Research Group (DECRG); National Research University Higher School of Economics

Kseniya Abanokova

National Research University Higher School of Economics

Maurizio Bussolo

World Bank - Chief Economist Office for Europe and Central Asia

Date Written: August 15, 2019

Abstract

Russia offers the unique example of a centrally planned economy swiftly transforming itself into a market-oriented economy. We offer a comprehensive study of inequality and mobility patterns for Russia, using multiple rounds of the Russian Longitudinal Monitoring Surveys over the past two decades spanning this transition. We find rising income levels and decreasing inequality, with the latter being mostly caused by pro-poor growth rather than redistribution. The poorest tercile experienced a growth rate that was more than 10 times that of the richest tercile, leading to less long-term inequality than short-term inequality. We also find that switching from a part-time job to a full-time job, from a lower-skill job to a higher-skill job or staying in the formal sector is statistically significantly associated with reduced downward mobility and income growth. However, a transition from the private sector to the public sector is negatively associated with income growth.

Keywords: welfare dynamics, poverty, inequality, pro-poor growth, panel data, household surveys, Russia

JEL Classification: C15, D31, I31, O10, O57

Suggested Citation

Dang, Hai-Anh H. and Lokshin, Michael and Abanokova, Kseniya and Bussolo, Maurizio, Welfare Dynamics and Inequality in the Russian Federation during 1994-2015 (August 15, 2019). Forthcoming, European Journal of Development Research. Available at SSRN: https://ssrn.com/abstract=3437563

Hai-Anh H. Dang (Contact Author)

World Bank- Development Data Group (DECDG) ( email )

1818 H. Street, N.W.
MC2-846
Washington, DC 20433
United States

HOME PAGE: http://sites.google.com/site/haianhhdang/

Michael Lokshin

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
202-473-1772 (Phone)
202-522-1153 (Fax)

HOME PAGE: http://econ.worldbank.org/staff/mlokshin

National Research University Higher School of Economics

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Kseniya Abanokova

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Maurizio Bussolo

World Bank - Chief Economist Office for Europe and Central Asia ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://https://blogs.worldbank.org/team/maurizio-bussolo

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