In the section | Articles |
Title of the article | Convergence Patterns of Regional Income Inequality Levels in Russia |
Pages | 46-62 |
Author | Konstantin Pavlovich Gluschenko Doctor of Economics, Chief Scientist Institute of Economics and Industrial Engineering SB RAS 17 Pr. Lavrentieva, Novosibirsk, 630090, Russian Federation Professor Novosibirsk State University 1 St. Pirogova, Novosibirsk, 630090, Russian Federation This email address is being protected from spambots. You need JavaScript enabled to view it. ORCID: 0000-0003-1209-3809 |
Abstract | A recent paper found that during 1995–2012 the dispersion of income inequality between Russian regions was decreasing, i.e. convergence of regional inequalities took place. This result is of no use for analyzing the impact of socio-economic policy, as it may aim at reducing income inequality of the entire country’s population and regional populations, but in no way at equalizing inequalities between regions. Moreover, the found phenomenon itself can be either positive, if regional inequalities converge to low values, or negative, when they converge to high values. In order to clarify this issue, a more detailed study of the convergence process is needed. The aim of this study is to reveal the ‘anatomy’ of regional inequality convergence in 1995–2012, and the divergence that followed it in 2013–2022, i.e. the internal pattern of these processes. To this end, the paper explores the evolution of the regional Gini indices distribution, namely, that of main distribution statistics and the distribution itself (represented by a histogram). The results obtained suggest that convergence of regional income inequalities in Russia in 1995–2012 is almost exclusively due to ‘catching-up’ of low-inequality regions with high-inequality regions. Therefore, this process cannot be considered positive. Divergence of regional inequalities in 2013–2022, on the contrary, was accompanied by a decrease in income inequalities in the regions, improving the situation with spatial inequality in Russia |
Code | 332.142.2 |
JEL | D31, D63, R11 |
DOI | https://dx.doi.org/10.14530/se.2023.3.046-062 |
Keywords | income inequality, convergence, divergence, Gini index, Galton’s fallacy, region, Russian Federation |
Download | |
For citation | Gluschenko K.P. Convergence Patterns of Regional Income Inequality Levels in Russia. Prostranstvennaya Ekonomika = Spatial Economics, 2023, vol. 19, no. 3, pp. 46–62. https://dx.doi.org/10.14530/se.2023.3.046-062 (In Russian) |
References | 1. Azariadis C., Drazen A. Threshold Externalities in Economic Development. Quarterly Journal of Economics, 1990, vol. 105, issue 2, pp. 501–526. 2. Benabou R. Inequality and Growth. NBER Macroeconomics Annual, 1996, vol. 11, pp. 11–74. 3. Friedman M. Do Old Fallacies Ever Die? Journal of Economic Literature, 1992, vol. 30, no. 4, pp. 2129–2132. 4. Glazyrina I.P., Klevakina E.A. Economic Growth and Income Inequality in Russian Regions. EKO = ECO Journal, 2013, vol. 43, no. 11, pp. 113–128. (In Russian). 5. Gluschenko K.P. Myths about Beta-Convergence. Zhurnal Novoy Ekonomicheskoy Assotsiatsii = Journal of the New Economic Association, 2012, no. 4, pp. 26–44. (In Russian). 6. Hotelling H. Review of ‘The triumph of mediocrity in business’ by Horace Secrist. Journal of the American Statistical Association, 1933, vol. 28, no. 184, pp. 463–465. 7. Khatun F., Saadat S.Y. The Optimum Level of Income Inequality in South Asia: An Econometric Analysis. South Asia Economic Journal, 2022, vol. 23, issue 1, pp. 7–29. 8. Maslikhina V.Yu. The Acceptable Level of Interregional Differentiation in Russia for Sustainable Development. Teotiya I Praktika Obshchestvennogo Razvitiya = Theory and Practice of Social Development, 2017, no. 12, pp. 93–96. (In Russian). 9. Polbin A.V., Ivakhnenko T.Yu. Convergence of Income Inequality in Russia’s Regions. Prostranstvennaya Ekonomika = Spatial Economics, 2022, vol. 18, no. 4, pp. 68–92. https://dx.doi.org/10.14530/se.2022.4.068-092 (In Russian). 10. Quah D. Galton’s Fallacy and Tests of the Convergence Hypothesis. Scandinavian Journal of Economics, 1993, vol. 95, no. 4, pp. 427–443. 11. Romer P.M. Increasing Returns and Long-Run Growth. Journal of Political Economy, 1986, vol. 94, no 5, pp. 1002–1037. 12. Saadat S.Y. The Optimum Level of Income Inequality: Evidence from Panel Data. Journal of Business and Policy Research, 2018, vol. 13, no. 1, pp. 78–89. 13. Solarin S.A., Erdogan S., Pata U.K. Convergence of Income Inequality in OECD Countries Since 1870: A Multi-Method Approach With Structural Changes. Social Indicators Research, 2023, vol. 166, no. 3, pp. 601–626. 14. Venkatasubramanian V., Luo Y., Sethuraman J. How Much Inequality in Income Is Fair? A Microeconomic Game Theoretic Perspective. Physica A: Statistical Mechanics and its Applications, 2015, vol. 435, pp. 120–138. http://dx.doi.org/10.1016/j.physa.2015.04.014 15. Wodon Q., Yitzhaki S. Convergence Forward and Backward? Economics Letters, 2006, vol. 92, issue 1, pp. 47–51. |
Financing | The work was carried out according to the research plan of the IEOPP SB RAS, project 5.6.1.5. (0260-2021-0002) ‘Integration and interaction of mesoeconomic systems and markets in Russia and its eastern regions: methodology, analysis, and forecasting’ |
Submitted | 24.05.2023 |
Approved after reviewing | 26.06.2023 |
Accepted for publication | 18.07.2023 |
Available online | 02.10.2023 |