Is Russia a Land of Opportunity? It Depends on How You Look at It

Authors

DOI:

https://doi.org/10.14515/monitoring.2020.6.1710

Keywords:

inequality indexes, income inequality, inequality of opportunity, efforts, circumstances

Abstract

The paper explores how the choice of the inequality measure can affect the results when measuring inequality of opportunities. The analysis is based on the Life in Transition Survey III (2016) conducted by the European Bank for Reconstruction and Development (EBRD). The study also uses the data of the 15th and 20th waves of the Russian Longitudinal Monitoring Survey - Higher School of Economics (RLMS-HSE) representing a series of annual nationwide representative surveys. Calculations were performed ex-ante using parametric method; both direct and indirect assessment procedures were applied. The study reveals that the choice of a particular measure of inequality can have a significant impact on the results when measuring inequality of opportunities. As Gini Index entails maximum discrepancy, and Theil’s L Index entails minimum discrepancy in assessments obtained through direct and indirect methods, it is more favorable to use Theil’s L Index.

Acknowledgements. The study is funded by a grant from the RFBR (project no. 19–010–00453).

Author Biographies

Zulfiya F. Ibragimova, Bashkir State University

  • Bashkir State University, Ufa, Russia
    • Cand. Sci. (Econ.), Associate Professor at the Faculty of Innovation Economics of the Institute of Economics, Finance and Business

Marina V. Frants, Ufa State Aviation Technical University

  • Ufa State Aviation Technical University, Ufa, Russia
    • Cand. Sci. (Tech.), Associate Professor at the Chair of Business Economics of the Institute of Economics and Management

Published

2020-12-30