Income Inequality and Oligarchs in Russian Regions: A Note

23 Pages Posted: 1 Jun 2017

See all articles by Jarko Fidrmuc

Jarko Fidrmuc

Zeppelin University Friedrichshafen

Lidwina Gundacker

University College London

Date Written: April 26, 2017

Abstract

We trace the rise of the so called oligarchs in post-Soviet Russia and examine their relationship to income distribution in Russia. When Russia moved to a market economy in the 1990s a new business elite evolved. Russia’s distinctive path towards market economy, among other factors, gave rise to the oligarchs who now control large parts of the economy and have a strong standing within politics and society. Using a unique regional data set on the locations of oligarchs’ businesses across the Russian regions, we test Acemoglu’s (2008) proposition that oligarchic societies experience extreme income inequality. Our results show significantly higher levels of income inequality in regions with a higher presence of oligarchs.

Keywords: Russia, oligarchs, entrepreneurship, privatization, inequality

JEL Classification: L220, D430, P250, P310

Suggested Citation

Fidrmuc, Jarko and Gundacker, Lidwina, Income Inequality and Oligarchs in Russian Regions: A Note (April 26, 2017). CESifo Working Paper Series No. 6449, Available at SSRN: https://ssrn.com/abstract=2977782 or http://dx.doi.org/10.2139/ssrn.2977782

Jarko Fidrmuc (Contact Author)

Zeppelin University Friedrichshafen ( email )

Am Seemooser Horn 20
Friedrichshafen, 88045
Germany

Lidwina Gundacker

University College London ( email )

Gower Street
London, WC1E 6BT
United Kingdom

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