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Income Mobility in Russia (2000-2005)

Although much research has been conducted on annual income inequality in Russia, little has been know about longer-run measures of income inequality and on income mobility. Using the data from the Russian Longitudinal Monitoring Survey, this paper investigates income mobility in Russia during the period of rapid economic growth. Employing a broad set of mobility indices, we show that there is much mobility in household incomes from one year to the next in Russia. There is some evidence of greater mobility for those in the tails of the income distribution relative to the middle. However, income movements in Russia over this period are largely associated with transitory rather than permanent changes.