Content №4 от 2017

Contribution of Various Sources to Interregional Personal Income Inequality in Russia

The article evaluates the contribution of different personal income sources and their components to interregional inequality under static and dynamic conditions over the period of 2001–2015. We show that labor compensations had the least impact on reducing interregional differences, and their relative contribution to inequality increased. Social transfers had the greatest leveling effect, but their convergence potential was significantly exhausted due to the construction features. Property incomes were the strongest catalyst for inequality, but their share in the total personal incomes was small and decreasing, and their interregional differences in this area dropped in the postcrisis period, so they made a small contribution to the regional convergence. Incomes from entrepreneurial activity also had a small effect on reducing interregional disparities due to a decrease in the share of total incomes and spatial reallocation. The predominant contribution to convergence (more than 50%) was made by so-called other (mostly informal) incomes. The obtained results testify to the impact of both the centralized redistribution of incomes along with the adaptive practices of the population and the peculiarities of the regions' institutional environment on the reduction of interregional differences related to personal incomes in contemporary Russia.

Malkina M. Yu.

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