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IS MONEY THE MEASURE OF WELFARE IN RUSSIA?
Author(s) -
Rose Richard,
Mcallister Ian
Publication year - 1996
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/j.1475-4991.1996.tb00147.x
Subject(s) - economics , welfare , distribution (mathematics) , equity (law) , monetary economics , market economy , mathematical analysis , mathematics , political science , law
The transformation of a non‐market to a market economy ought to change fundamentally the significance of money incomes for welfare. Whereas in a stressful non‐market economy such as the former Soviet Union, non‐monetized resources could substitute for money income and promote welfare, in a modern market economy money income should be a good proxy for household welfare. This article tests the extent to which Russians are now in a modern market economy by analyzing data from nationwide Russian surveys in January, 1992, and April, 1994. Modern influences are increasingly important as a determinant of the distribution of money incomes, but not as an influence upon household welfare. The “randomness” of temporary disruptions of welfare is in accord with Rawlsian principles of equity.