Determinants of the Middle Class Formation in Russia

Student: Tazetdinova Daniya

Educational Programme: Applied Economics (Master)

Final Grade: 9

Year of Graduation: 2020

This study focuses on the influence of socio-economic characteristics of the region on the size of the regional middle class using the models of spatial econometrics. As a result, a set of factors that always has a significant impact on the size of the middle class was determined. The middle class is increased by the number of university graduates, the share of people employed in the manufacturing sector and the natural increase of population. The unemployment rate and bureaucracy have a negative effect. In addition, significant indirect marginal effects were obtained, which means that the middle class in this region is determined not only by the regressors of this region, but also by neighboring ones. Also, the size of the middle class of neighboring regions affects each other.

Full text (added May 27, 2020)

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