Measuring Income Inequality in Russia: A Note on Data Sources

Abstract

Income inequality in Russia is increasingly discussed in academic circles and society at large. However, different data sources produce different estimates of inequality. According to household surveys, income inequality in Russia corresponds to that of European countries. Official Rosstat figures indicate a higher level of inequality closer to that of the United States. Finally, various attempts at augmenting survey data with tax records produce even higher estimates, placing Russia among the world's most unequal nations, such as Brazil and South Africa. Due to the dramatic underrepresentation of the top incomes in the survey data, it is likely that tax-based estimates are the closest to the truth. While it is safe to say that income inequality in Russia is very high, the direction of its change in the last 20 years remains unclear. This issue cannot be resolved without more detailed statistics from the Federal Tax Office over a longer period of time.