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Income Inequality Decomposition, Russia 1992-2002: Method and Application

[journal article]

Jansen, Wim; Dessens, Jos; Verhoven, Willem-Jan

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Please use the following Persistent Identifier (PID) to cite this document:http://nbn-resolving.de/urn:nbn:de:0168-ssoar-365254

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Abstract Decomposition methods for income inequality measures, such as the Gini index and the members of the Generalised Entropy family, are widely applied. Most methods decompose income inequality into a between (explained) and a within (unexplained) part, according to two or more population subgroups or income sources. In this article, we use a regression analysis for a lognormal distribution of personal income, modelling both the mean and the variance, decomposing the variance as a measure of income inequality, and apply the method to survey data from Russia spanning the first decade of market transition (1992-2002). For the first years of the transition, only a small part of the income inequality could be explained. Thereafter, between 1996 and 1999, a larger part (up to 40%) could be explained, and ‘winner’ and ‘loser’ categories of the transition could be spotted. Moving to the upper end of the income distribution, the self-employed won from the transition. The unemployed were among the losers.
Keywords Russia; transition; market economy; difference in income; income distribution; post-communist society
Classification Macrosociology, Analysis of Whole Societies; National Economy
Free Keywords decomposition; market transition
Document language English
Publication Year 2013
Page/Pages p. 21-34
Journal Studies of Transition States and Societies, 5 (2013) 2
ISSN 1736-8758
Status Published Version; peer reviewed
Licence Creative Commons - Attribution