IDEAS home Printed from https://ideas.repec.org/a/pes/ierequ/v12y2017i3p399-416.html
   My bibliography  Save this article

Contribution of various income sources to interregional inequality of the per capita income in the Russian Federation

Author

Listed:
  • Marina Malkina

    (Lobachevsky State University of Nizhni Novgorod, Russia)

Abstract

Research background: The reduction lately observed in interregional differences in the per capita income in Russia requires some clarification of the reasons. One possible way to do this could be decomposition of interregional inequality in personal incomes by income sources, i.e.: wages and salaries, property incomes, social transfers, entrepreneurship incomes and revenues from informal activities. Purpose of the article: The objective of this research is identification of the character, direction and degree of influence of various income sources on interregional inequality and convergence of Russian regions by their per capita income in 2001–2014. Methods: We brought personal incomes in the regions to a comparable level using the relative cost of fixed consumer basket. Then we applied the population-weighted Gini coefficient, coefficient of variation, and the Theil index to measure the interregional inequality in personal incomes in dynamics. Further usage of various techniques of inequality decomposition allowed us to evaluate contribution of different types of income to the Russian regions’ convergence across time. Findings & value added: Various types of income demonstrated different paths of interregional inequality, changes in interaction and in the shares of total income, which altogether influenced spatial inequality. Wages and salaries showed the largest and growing impact on inequality. The contribution of informal incomes to the overall inequality was the second largest, but diminishing and negatively interacting with other unevenly distributed types of income; thereby they provided more than half of the total interregional convergence. Entrepreneurship incomes revealed slightly decreasing influence on inequality, which was mainly neutralized by their reduction in the share of total income. Social transfers demonstrated the largest smoothing effect, however, their contribution to convergence was exhausted. Property incomes evidenced the greatest enhancing impact on inequality especially in the period of recovery. Additionally, informal incomes played the role of substitutes for formal incomes providing self-replicating mechanisms for reducing inequality in Russia.

Suggested Citation

  • Marina Malkina, 2017. "Contribution of various income sources to interregional inequality of the per capita income in the Russian Federation," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 12(3), pages 399-416, September.
  • Handle: RePEc:pes:ierequ:v:12:y:2017:i:3:p:399-416
    DOI: 10.24136/eq.v12i3.21
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.24136/eq.v12i3.21
    Download Restriction: no

    File URL: https://libkey.io/10.24136/eq.v12i3.21?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bruton, Garry & Sutter, Christopher & Lenz, Anna-Katharina, 2021. "Economic inequality – Is entrepreneurship the cause or the solution? A review and research agenda for emerging economies," Journal of Business Venturing, Elsevier, vol. 36(3).
    2. Vladimir Hlasny, 2022. "Household Earnings in Putin’s Russia: Distributional Changes across Socioeconomic Groups, 2000–2016," LIS Working papers 847, LIS Cross-National Data Center in Luxembourg.
    3. Yuriy Bilan & Dalia Streimikiene & Tetyana Vasylieva & Oleksii Lyulyov & Tetyana Pimonenko & Anatolii Pavlyk, 2019. "Linking between Renewable Energy, CO 2 Emissions, and Economic Growth: Challenges for Candidates and Potential Candidates for the EU Membership," Sustainability, MDPI, vol. 11(6), pages 1-16, March.
    4. Marina Malkina, 2019. "Spatial wage inequality and its sectoral determinants: the case of modern Russia," Oeconomia Copernicana, Institute of Economic Research, vol. 10(1), pages 69-87, March.
    5. Marina Malkina, 2019. "Determinants of Private Savings in the Form of Bank Deposits: A Case Study on Regions of the Russian Federation," Economies, MDPI, vol. 7(2), pages 1-22, June.
    6. Serhiy Lyeonov & Tetyana Pimonenko & Yuriy Bilan & Dalia Štreimikienė & Grzegorz Mentel, 2019. "Assessment of Green Investments’ Impact on Sustainable Development: Linking Gross Domestic Product Per Capita, Greenhouse Gas Emissions and Renewable Energy," Energies, MDPI, vol. 12(20), pages 1-12, October.

    More about this item

    Keywords

    personal income; sources; interregional inequality; decomposition;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pes:ierequ:v:12:y:2017:i:3:p:399-416. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Adam P. Balcerzak (email available below). General contact details of provider: https://edirc.repec.org/data/ibgtopl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.