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Income Inequality Dynamics in Different Federal Regions and Possible Reasons for the Changes

Student: Aleksey Gromov

Supervisor: Marina V. Silaeva

Faculty: Faculty of Economics

Educational Programme: Economics (Bachelor)

Final Grade: 10

Year of Graduation: 2020

In this paper the impact of economic growth and population on income inequality is analyzed using the Russian economics data. Dataset ranges from 2013 to 2017 and comprises information about 78 regions of the Russian Federation. The models suggests that income inequality can be expressed either as a square function of economic development or as a square function of population, and metrics related to the number of doctors and teachers. The estimations are computed with the help of ordinary least squares method of regression analysis. The fixed and random effects models are estimated apart from pooled regression, because of a panel structure of data. The revealed relationship between income inequality and economic growth is not significant at 10% confidence level. However, the square function of population is significant. The overview of regression results contains marginal effects and their explanation. The paper also includes analysis of the changes in income distributions over time in different Federal Regions.

Full text (added May 18, 2020)

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