Regional Economics: Theory and Practice

Contributors to poverty and income inequality in the Volga Federal District

Vol. 16, Iss. 11, NOVEMBER 2018

Received: 17 September 2018

Received in revised form: 1 October 2018

Accepted: 8 October 2018

Available online: 16 November 2018


JEL Classification: R13, R28

Pages: 2044–2058

Ovchinnikov V.N. Financial Research Institute of Ministry of Finance of Russian Federation (FRI), Moscow, Russian Federation

ORCID id: not available

Subject The article examines and discusses the issues of income differentiation and inequality in the Volga Federal District of the Russian Federation.
Objectives The article aims to identify and assess in the econometric aspect the factors of relative poverty and income differentiation in the Volga Federal District.
Methods For the study, I used the methods of analysis of descriptive statistics, specification and econometric estimation of logit regressions for the level of relative poverty. The decomposition approach includes the technique of decomposition of the Theil inequality index by group, as well as the regression method of decomposition of income differentiation.
Results The article describes the factors contributing to the differentiation of income of the population, and those ones that increase the likelihood of overcoming the threshold of relative poverty.
Conclusions and Relevance Gender and educational status make the most appreciable contribution to differentiation of incomes in the Volga Federal District. The results obtained can be used in a targeted economic policy aimed to mitigate the excess level of inequality and overcome poverty in the District.

Keywords: poverty, inequality, Theil index, decomposition, Mincer Earnings Function, Fields method, logit regression


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