Monetary inequality in Russia in the sociological dimension

This article examines the specifics of the income inequality structure in modern Russian society, as well as the tendencies for its change during the country’s post-Soviet period of development. It is shown that, compared to other countries, the traditional economic indexes which measure income inequality (decile ratio, Gini coefficient) position the Russian Federation as a country with a high degree of inequality within the mass layers of the population, especially when compared to Europe, albeit the level of inequality is slightly lower compared to BRICS member states. When using equivalence scales, which adjust the people’s income after factoring in economies of scale in consumption, Russia’s inequality figures improve even more. Based on quintile income distribution and the concentration of income within the highest quintile, Russia also occupies an intermediate position, surpassing most European countries, though not BRICS member states. However, the highest quintile is characterized by a high degree of differentiation. When transitioning from the wealthiest 20% of the population to the 1–5%, Russia’s place among other countries of the world changes significantly: when it comes to the gap between the “upper crust” and the masses, Russia can be considered one of the leading countries in the world.

It has also been revealed that on the other end of the income distribution spectrum, at the population’s lower strata, there has been a noticeable “rise” of low-income groups in the last few years, with them somewhat approaching the middle. It was manifested in a more rapid increase in prosperity among the lower 40% of the population when compared to the population in general, as well as in a noticeable decrease in poverty levels during the 2000’s. Those citizens who were left in the lower strata of income distribution created a clearer image of poverty, which differs from the “average Russian” and emphasizes the importance of gauging not only low income level, but also an array of non-monetary inequality dimensions. Such a process of “homogenization” has lead to an increase in the size of groups with median and average income, with them being the most numerous groups in the current structure of Russian society. However, the increase in the number of people in said groups was not only caused by their shifts from low-income groups of the population, but also because of some members from the more prosperous strata experiencing an “averaging” of their level of income as well.

sociology, income inequality, wealth inequality, poverty, middle income group, income stratification

Alvaredo F., Chancel L., Piketty T., Saez E., Zucman G. World Inequality Report 2018: Executive Summary. Paris, World Inequlaity Lab, 2018.

Avraamova E.M., Maleva T.M. On the Causes of Socio-Economic Inequality Reproduction: What Does Resources Approach Show? Voprosy Economiki = Issues of Economics, 2014: 7: 144–160 (In Russ.).

Dallinger U. The endangered middle class? A comparative analysis of the role played by income redistribution. Journal of European Social Policy, 2013: 23 (1): 83–101.

Families with children in Russia: living standards and social support policies. Ed. by Ovcharova L.N. Moscow, NRU HSE publ., 2019 (In Russ.).

Global Wealth Databook 2017 by Credit Suisse. Zurich, Credit Suisse group AG, 2017.

Grigoriev L.M., Pavliushina V.A. Social inequality as a problem of Russian economic strategy. Mir novoy economiki = World of New Economcis, 2017: 3: 58–71 (In Russ.).

Grusky D. The Stories About Inequality That We Love to Tell. In: The Inequality Reader. Contemporary and Foundational Readings in Race, Class, and Gender. Westview Press, 2011: 1–13.

Kapeliushnikov R.I. Inequality: How not to primitivize the problem. Voprosy Economiki = Issues of Economics, 2017: 4: 117–139 (In Russ.)

Korchagina I.I. Development of regional instruments for measuring poverty for targeted social programs for the poor. Social’naja politika: realii XXI veka = Social Policy: Realities of XXI Century, 2007: 3: 3–31 (In Russ.).

Mareeva S.V. Consumption behavior of middle strata in times of economic crisis. Zhurnal institutsional’nykh issledovaniy = Journal of Institutional Studies, 2017: 9 (1): 88–104 (In Russ.).

Mareeva S.V. Social inequities and the social structure of modern Russia as perceived by the population. Vestnik Instituta sotziologii = Bulletin of the Institute of Sociology, 2018: 9 (3): 101–120 (In Russ.).

Mareeva S.V., Tikhonova N.E. Public Perceptions of Poverty and Social Inequality in Russia. Mir Rossii = Universe of Russia, 2016: 25 (2): 37–67 (In Russ.).

Milanovic B. Global inequality: A new approach for the age of globalization. Harvard University Press, 2016.

Model of income stratification of Russian society: dynamics, factors, cross-country comparisons. Ed. by N.E. Tikhonova. Saint Petersburg, Nestor-Istoriya, 2018. (In Russ.).

Novokmet F., Piketty T., Zucman G. From Soviets to Oligarchs: Inequality and Property in Russia, 1905–2016. National Bureau of Economic Research. Release No. W23712, 2017.

Ovcharova L.N., Popova D.O., Rudberg A.M. Decomposition of Income Inequality in Contemporary Russia. Jurnal Novoy Economicheskoy Associacii = Journal of the New Economic Association, 2016: 3 (31): 170–185 (In Russ.).

Piketty T. Capital in 21st century. Harvard University Press, 2014.

Salmina A.A. Atkinson’s inequality measure as an alternative to Gini: estimates for Russia. Social’naja politika i sotsiologija = Social Policy and Sociology, 2018: 18 (3): 83–92 (In Russ.).

Slobodeniuk E.D., Anikin V.A. Locating the “poverty threshold” in Russia. Voprosy economiki = Issues of Economics, 2018: 1: 104–127 (In Russ.).

Stiglitz J. The price of inequality: how today’s divided society endangers our future. New York, 2012.

Transition Report 2016–2017 by European Bank for Reconstruction and Development. Transition for All: Equal Opportunities in an Unequal World. London, EBRD, 2017.

World Bank. Russian Economic Report No. 31. World Bank, 2014.

World Bank. Russian Economic Report No. 33. World Bank, 2015.

World Bank. Russian Economic Report No. 42. World Bank, 2019.

World Bank. Poverty and Shared Prosperity 2016: Taking on Inequality. Washington, DC: World Bank, 2016.

World Bank. Poverty and Shared Prosperity 2018: Piecing Together the Poverty Puzzle. Washington, DC: World Bank, 2018.