We analyze the cross-sectional and time series behavior of some key household and individual economic variables using the panel micro data from the Russia Longitudinal Monitoring Survey for 1994-2005.
We compare our results to the official statistics and find evidence that the national accounts may overstate the growth rate in living standards during the sample period an understate the extent of economic collapse that occurred in 1998.
We also find that expenditure inequality has increased while expenditure level was falling in 1994-1998 and that inequality in both income and expenditure has decreased during the 2000-2005 economic recovery. Although the overall expenditure inequality fell during the economic recovery, households in large cities have gained ground relative to other groups. Households with higher education have rapidly moved up in the expenditure distribution during 1994-1996, and held their ground in subsequent years.