Income Transfers and the Social Safety Net in Russia

摘要

In Russia, the immediate consequence of reform is an acceleration in the wideningdisparity of earnings and income distribution. The rigidities of the former productive system have caused output to decline. Combined with effects of wage and price liberalization, this is not only likely to cause unemployment, but also to create new poverty groups. Urgently needed is a social safety net that can simultaneously address efficiency and distributional objectives by directly investing in labor, and by protecting low income and vulnerable groups. In the process, it would effectively provide for a system of income transfers and the establishment of an efficient labor market. The study emphasizes the need to maintain a balanced perspective between short and long term goals.