INTERREGIONAL DIFFERENTIATION OF POPULATION INCOMES IN RUSSIAN FEDERATION IN THE POST-CRISIS PERIOD.

Author:Litvintseva, Galina P.
Position::Report
 
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INTRODUCTION

Inequality increase and opportunities limitations are among the significant concerns of most of countries. Adopting of many political solutions by progressive politicians is disrupted by a critical level of the inequality in many countries. The inequality effects appear not only in the economic life, but also in the democracy and in the globalization processes. Nobel laureate Joseph Stiglitz writes the following: "We are paying a too high price for the inequality: the point is not only in development weakening and GDP decrease, but also in a general instability. And all this is without mentioning a wide range of other losses: weakened democratic system, slackening of justice position as a value in a human's consciousness and to my mind even identity loss danger" (Stiglitz, 2015). All above mentioned is pertinent to present-day Russia, where regions economic growth is known to be notable for its essential differentiation. Together with dynamically developing territorial entities of the RF which are marked by quality and level of living increase, there exist grossly depressed regions with a low level of living. The population's income inequality in Russia is one of the most intense and constant factors of destabilization of a socioeconomic situation in the country (Stukalenko, 2009). Today, as the world has witnessed different crises particularly economic crises in many countries due to natural and artificial phenomena. In this regard and also the issue of imposing economic sanctions to Russia the country faces an urgent need for economy reforming. Despite the national peculiarities of our country to execute all the reforms "from the top" these reforms success depends on the society readiness for their execution. One of the important conditions is a civil solidarity, population motivation for cooperation, which decreases essentially due to the high society differentiation concerning the level of living. A great inequality of income and consequently of social opportunities of the citizens that appears in the inequality of getting of education, professional development and the like amenities substantially hampers building of an innovative economy and finally moves aside such an important "import phase-out" and other aims realization for an indefinite term.

A steady monitoring of social indicators which reflect properly the situation in regions and an immediate applying of regulatory measures on basis of this monitoring are in our opinion in the list of the most important tasks of the government. Today according to the market system apart from the essential differentiation of the nominal income of the population there is a huge price differentiation for services and wares in the regions of the RF that influences tremendously the level of living in the regions. Nevertheless, an official statistics ignores these regional differences which are about different purchasing power of the Rouble in the regions of the RF and consequently, the information needed for solutions adopting in the area of the welfare and for poverty reduction of the population is distorted to a varying degree.

Basic Definitions, Statistical Data Characteristics

Starting from year 2007, the authors have been making researches concerning the inequality of population incomes of the Russian Federation with regard to processed approach considering the Rouble purchasing power parity in the regions of Russia (Litvintseva, Voronkova & Stukalenko, 2007). The question concerning the relevance of hidden earnest was for the first time raised by Litvintseva in 2008 (Litvintseva, 2008). In 2009 the authors analyzed social transfers in kind influence on the population income inequality level (Litvintseva, Voronkova & Stukalenko, 2009). In this article the results of the further research of the population money income inequality for the period of 2008-2013 years, i.e. the period of economic recession and stagnation in the middle of the first period a twenty years of the XXI century are represented.

Due to this fact let us note a content of the terms used in the research.

Population incomes include incomes of persons engaged in the entrepreneurial activity, paid salary of waged earners (wage paid adjusted to the overdue change), social benefits (pensions, reliefs, scholarships, insurance indemnity and other payments), property incomes as interest on deposits, yields, dividends and other incomes (earnest, revenues from foreign currency sales, cash transfers and incomes not having a widespread occurrence).

Purchasing power parity of the Rouble (PPPR) in the region is calculated as a ration of the average Russian value for the fixed set of goods and services to the value for this set in this very region (in average annual prices).

As information base for the research the official data of the Russian Federal State Statistics Service were used (Russia, 2015). The calculations were made in view of all the territorial entities of the RF (starting from 2008) and five 20 % (quintile) groups of the population in each of the entities.

RESEARCH METHODOLOGY

For such a research type Gini coefficient, R/P 10% ratio, Herfindal index, Theil index, Robin Hood index (known as Hoover index), Atkinson index and other are applied (Kolomak, 2013; Zubarevich, 2010). In our research we used quintile Gini coefficient and R/P 10% ratio. Nevertheless historical series of the statistical information were modified to the similar kind not only with regard to time but also with regard to regional factors (of area), in our case of the Russian Federation (Glinskiy, Serga, Chemezova & Zaykov, 2016; Glinskiy, Serga & Khvan, 2016). Besides, for estimation of the level of the absolute (according to the approach of the Russian Federation) and the cumulative poverty modified by the authors (Litvintseva, Stukalenko & Voronkova, 2010) model of Pen (Breul, 1973) and model of Lorenz (Eliseeva, 2003) were used.

CALCULATIONS RESULTS ANALYSIS

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