CInSt Research Seminar "Credit and Income Mobility in Russia": Cristiano Perugini (University of Perugia)

The paper investigates the microeconomic drivers of short-term income mobility in Russia over the period 1994–2018, focusing on the role of credit in triggering household income growth. The descriptive analysis suggests that income mobility declined significantly over time in Russia and particularly after the mid-2000s, when income changes increasingly materialized as transfers and determined permanent changes in inequality. Controlling for other personal and household characteristics, the econometric model for the drivers of income mobility indicates that access to credit boosts income growth, but the effects are heterogeneous across household characteristics and over time. Complementary empirical evidence corroborates the idea that the beneficial impact of credit on income mobility mainly unfolds through channels related to the labour market, particularly an increase in labour supply at the intensive margin.