Inequality of Opportunity in Russian Regions: Objective Estimates and Population Perception

Abstract

Income inequality driven by inequality of opportunity can lead to slower economic growth and social instability. The present paper analyses inequality of opportunity in three Russian regions, namely, Moscow, Stavropol krai and Chelyabinsk oblast. For each region, the contribution of unequal opportunities to income inequality (objective estimates), as well as the population perception of inequality of opportunity (subjective estimates) were examined. The research is based on the data of а sociological survey conducted by the Russian Presidential Academy of National Economy and Public Administration in 2019. The contribution of inequality of opportunity at the regional level ranges from 9 to 12 % for labour income and from 7 to 13 % for average per capita income. This situation can be explained, among other things, by significant interregional inequality in Russia. The composite index of subjective inequality of opportunities, constructed in accordance with people’s perception of various success factors, shows that 14–20 % of the population in the above regions consider the problem of inequality of opportunity as important or very important, and 6–11 % as very important. The conducted regression analysis shows that higher levels of education and well-being correspond to less acute perception of inequality of opportunity. No significant regional differences were found, since the perception of inequality mostly depends on individual characteristics of the respondents rather than on their place of residence. The considerable difference between the objective estimates of regional inequality of opportunity and its perception is consistent with the results of international studies. For example, the perception of inequality of opportunity in Stavropol krai is higher than in other regions, while its objective estimate, on the contrary, is lower.