Russians Deeply Divided by Income
The growth in personal incomes in Russia in 2008 is rapidly increasing the number of citizens with incomes of more than 15,000 rubles per month, and equally quickly reducing the number of those receiving less than 4000 rubles, according to new data from Rosstat. However, the number of those receiving 8000-10,000 rubles per month remains unchanged. Government social policy pays little attention to that segment of the public. Many of those in the 8000-10,000 ruble income range are employees paid from the federal budget.
In the first quarter of the year, says the state statistic service, 26.6 percent of Russians, 37.6 million people, had incomes over 15,000 rubles per month. The average income in the first quarter was 12,500 rubles per month, and the average salary was 15,400 rubles. There were 9.8 million people, 13.9 percent of the population, with incomes over 25,000 rubles. A year ago, that income segment made up only 5.2 percent of the population, or 7.4 million people. At the same time, 13.4 percent of the population, or 18.9 million people, had incomes under the minimum cost of living of 4000 rubles per month. That is compared to 21.2 percent, or 29.9 million people, a year ago.
The higher indicators at the high and low ends of the income scale are signs of general growth. The average income increased 26.2 percent in the last year in Russia. Thus, while income growth dynamics are positive in all segments, income growth is unevenly distributed and income differentiation is increasing. Also, the growth of real income is slowed down by inflation, and more so than for the poor than the rich. While there is a large middle class in developed countries, with small segments above and below the middle level, in Russia, there are large high-income and low-income segments, and almost no middle class.
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All the Article in Russian as of June 06, 2008
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