Social inequality in the Russian Federation : regional convergence vs. urban divergence in levels of living

Social disparities in regions of Russia were increasing since transition started in the 1990s. Policy of budgetary alignment and state social policy carried out in the first 10 years of 2000- th at the expense of redistribution of a resource rent reduced in some degree social inequalities among regions. But social disparities between settlements of different size and status within regions are still even more considerable. This empirical paper attempts to add evidence on the issue of disparities and convergence in levels of living within regions and cities of the Russian Federation in the period 2000-2010.