Income Inequality in Russia during Transition: How Can it be Explained?

Analysis of income inequality is often applied to the case of measuring total income inequality in a given population. However it is more interesting and useful to make empirical analyses of factors associated with rising income differ-ences of population. This paper examines the causes of inequality growth in Russia during transition. Using RLMS data author tries to assess the contribution of different income sources to total income inequality and define what household features responsible for the income inequality and its change.