Unequal fortunes: a note on income convergence across Russian regions

This article uses annual data for 1992-2005 to examine income dispersion and convergence across 76 Russian regions. Wide disparities in income levels have emerged during the transition period. Dispersion has increased most among the initially better-off regions, whereas for the initially poorer regions no clear trend of divergence or convergence could be established. Further, evidence was found of both unconditional and conditional convergence, especially among the initially richer regions. Finally, it is observed that there is much less evidence of convergence after the economic crisis of 1998.