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7 - Inequality

Published online by Cambridge University Press:  27 January 2021

Alexander Libman
Affiliation:
Ludwig-Maximilians-Universität Munchen
Anastassia V. Obydenkova
Affiliation:
IBEI, Barcelona, Spain
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Summary

In this chapter, we study how the CPSU legacy affects the levels of income inequality in Russian regions. Equality is one of the key elements of the Communist ideology; yet after the collapse of the USSR former Communists were relatively successful in adjusting to the new market economy, which could make them less willing to support redistribution. Our analysis shows that, controlling for the differences in income per capita, the CPSU legacy is associated with lower levels of inequality. However, these differences are not driven by public redistribution or by charitable activity. We hypothesize that the effects of the CPSU legacy are connected to the development of informal networks in regional societies, which could serve as a redistribution device.

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Historical Legacies of Communism
Modern Politics, Society, and Economic Development
, pp. 168 - 202
Publisher: Cambridge University Press
Print publication year: 2021

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