INEQUALITY AND POVERTY: RECENT TRENDS

Author:

T. I. Gordiyevich,
Сandidate of Еconomic Sciences, Аssociate Professor, Аssociate Professor of the Department of organization and management of science-intensive industries
Omsk State Technical University,
11 Mira Ave., Omsk, 644050, Russian Federation
е-mail: pluchin2@mail.ru
P. V. Ruzanov,
Сandidate of Еconomic Sciences, Аssociate Professor, Аssociate Professor of the Department of organization and management of science-intensive industries
Omsk State Technical University,
11 Mira Ave., Omsk, 644050, Russian Federation

Abstract:

Introduction. In the context of the protracted structural crisis in the Russian economy, the problems of poverty and inequality are exacerbated. The purpose of the article is to study these trends in modern times.

Methods. The article uses the analytical method. In particular, the indicators of inequality in the population monetary incomes distribution, the poverty level and inequality in consumption in 2012–2017 are analyzed.

Results. The analysis revealed some positive trends: there are fewer poor people and more rich ones; the quantity of the middle group is growing. The main characteristics of the cash income differentiation such as the funds decile coefficient and the Gini coefficient are reduced. The funds decile coefficient calcu-lated according to income level for the period under review was lower than the funds coefficient calculated according to consumption level. It was possible to conclude that income inequality was higher than con-sumption inequality. There were also negative trends. During the period under review, the number of peo-ple with monetary incomes below the subsistence minimum increased and the cash income deficit almost doubled. The asymmetry of the consumer price index by socio-economic groups was revealed. In the groups with rising costs the consumer price index declined, while in the low – income groups it increased. An analysis of the income structure shows that in the general monetary income of the population, wages are the most significant. Income from property grows slightly, income from business activity decreases and social payments grow.

Conclusion. Inequality and poverty remain the number one problem and require the transformation of economic policies. One of the directions may be a change in tax policy, the development of a progressive tax system, in particular.

Keywords:

Poverty, inequality, income, final consumption, inflation, socio-economic groups.