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DOI: https://doi.org/10.34069/AI/2023.65.05.12
How to Cite:
Nikolskaya, A., Butorina, G., Gareev, R., Podbiralina, G., & Mrochkovsky, N. (2023). Self-assessment of well-being and individual
attitudes towards inequality. Amazonia Investiga, 12(65), 116-130. https://doi.org/10.34069/AI/2023.65.05.12
Self-assessment of well-being and individual attitudes towards
inequality
Самооценка благополучия и индивидуальные установки по отношению к
неравенству
Received: March 14, 2023 Accepted: May 1, 2023
Written by:
Anastasia Nikolskaya1
https://orcid.org/0000-0001-8821-5177
Web of Science Researcher ID: A-8854-2017
Galina Butorina2
https://orcid.org/0000-0002-6954-8475
Web of Science Researcher ID: ABE-9945-2021
Roman Gareev3
https://orcid.org/0000-0002-8281-415X
Web of Science Researcher ID: K-1353-2018
Galina Podbiralina4
https://orcid.org/0000-0002-1281-0508
Web of Science Researcher ID: АРУ-2120-2022
Nikolay Mrochkovsky5
https://orcid.org/0000-0001-8453-3944
Web of Science Researcher ID: ADU-5360-2022
Abstract
The problem of social inequality is a relevant
subject of research, since in many ways all kinds
of protest movements arise in the society when
its different segments and groups feel and
experience social injustice. The individual’s
disadvantaged position in the society at present
and his/her willingness to change it against the
inability to do it is an important indicator of
social instability. However, people’s perception
of social injustice and inequality is different. The
purpose of the present study is to explore the
causes of economic inequality in Russia, as
viewed by the population, as well as the attitudes
to fairness of economic inequality and subjective
assessment of one’s own chances of material
success. The paper identifies the factors that
influence subjective assessment of a person’s
own chances. In the opinion of the population, it
is non-meritocratic forms that are predominant in
the Russian society. It was found that
dissatisfaction with inequality is lower among
the people who are poor today but contemplate to
1
PhD in Psychology, Moscow State University of Design and Technology, Russia.
2
PhD in Economics, Northern Trans-Ural State Agricultural University, Russia.
3
PhD in Economics, Plekhanov Russian University of Economics, Russia.
4
PhD in Economics, Plekhanov Russian University of Economics, Russia.
5
PhD in Economics, Plekhanov Russian University of Economics, Russia.
Nikolskaya, A., Butorina, G., Gareev, R., Podbiralina, G., Mrochkovsky, N. / Volume 12 - Issue 65: 116-130 / May, 2023
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become rich in the future than among those who
apprehend of becoming poor both now and in the
future. It is shown that the individual’s subjective
rank in income distribution is more important for
one’s subjective well-being than the relative
wage level.
Keywords: economic inequality, meritocratic
and non-meritocratic factors of economic
success, income distribution, subjective well-
being.
Introduction
The interdependence between subjective well-
being and wealth inequality is the focus of many
scientific works. To explore the above-
mentioned correlation, one typically has to obtain
data regarding the subjective well-being of a
subject denoted as ‘I’ living in a territory denoted
as ‘j’ (the letter ‘j’ in many, although not all,
cases, means a country) at a certain moment ‘t’.
Researchers also take into account the array of
typical demographic determinants. The above-
mentioned determinants can include age, family
situation, level of education, gender, the region’s
labour market indicators, family or personal
income).
An essential parameter used in many works is the
interrelation that exists between the individual’s
well-being and the degree of economic disparity
in the territory ‘j’, with the consideration of the
total array of variables in the well-being vector.
This indicator shows how, under otherwise equal
conditions, people assess their well-being in
territories with different degrees of economic
disparity. It is suggested that the “inequality
value” results from the actual correlation
between the economic segregation people see in
their lives and their subjective well-being. To
evaluate the latter, researchers typically use
questions regarding a person’s degree of
satisfaction with his/her earnings and life in
general, as well as other indicators of mental
well-being.
Such an approach is proposed, for example, by
Park et al., (2017). Other variables used can
include unemployment and inflationary pressure
(Di Tella et al., 2001; Di Tella & MacCulloch,
2008), environmental contamination
(Luechinger, 2009), as well as aviation noise, as
indicated in (Van Praag & Baarsma, 2005).
The present study aims to examine the reasons
for economic disparity in the Russian Federation
perceived by the population and examine if
people evaluate the fairness of economic
disparity as their chances for prosperity.
Literature Review
One of the first works devoted to the economics
of happiness was the research by Morawetz et al.,
(1977), considering two Israeli communities and
demonstrating that the degree of happiness is
higher when the distribution of material wealth is
more equal. The findings of this work are of a
certain interest, but they are based on only two
cases without taking into account other possible
discrepancies that may exist between
communities. Tomes (1986), drawing upon the
Quality of Life Survey held in two hundred
Canada’s electoral districts in 1977, compared
the statistics of material wealth distribution and
demonstrated that the level of earnings received
by the lower forty per cent of the population was
inversely related to the feelings of life
satisfaction demonstrated by male participants in
the census. At the same time, these factors were
not as essential for female participants. It can be
concluded that the correlation between the level
of earnings and the subjective well-being of men
is positive.
Hagerty (2000), relying on the data of the GSS
(General Social Survey) for the years 1989–
1996, revealed that the highest community
income and community income disparity had a
negative and positive correlation with the
feelings of happiness, respectively. Studies by
Blanchflower & Oswald (2003) and Oishi et al.,
(2011) indicated that there were inverse
relationships between the life satisfaction degree
and income disparity. Meanwhile, Alesina et al.,
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(2004), based on the same GSS data, found no
consistent interrelation between income and
happiness. Based on the long-term data for the
USA and Europe provided taken from the GSS
(1972–1997), as well as Eurobarometer
1
(1975–1992), the authors of the above-
mentioned study suggested that wealth disparity
affected the subjective well-being of the
European population, but it was the other way in
the USA. This difference can be explained by the
(perceived) higher social mobility in the U.S.
In the study by Schwarze and Härpfer (2007),
income disparity was assessed using data on
gross family income taken for an area and a year.
The data for this research were provided by the
Socio-Economic Panel (SOEP
2
). It was found
that life satisfaction was inversely related to
income disparity (at the same time, the index of
the redistribution of material wealth was not
essential in this study). Some other studies
(Biancotti & D’Alessio, 2008; Ebert & Welsch,
2009, Brodeur & Flèche, 2013; Van de Werfhorst
& Salverda, 2012; Oshio & Kobayashi, 2010;
Verme, 2011; Winkelmann & Winkelmann,
2010) also revealed a negative interrelation
between income disparity and well-being.
At the same time, several papers demonstrated a
direct interrelation between income disparity and
well-being. For instance, Ball (2001) showed that
life satisfaction and economic disparity
positively correlated with the World Values
Survey (WVS
3
) data for 1996. Knight et al.,
(2009), relying on the data of the China National
Household Survey, 2002, identified a direct
association between country-level income
disparity and life satisfaction.
Grosfeld and Senik (2010) attempted to find a
similar correlation, analysing the data from
Poland during the time of transition from
socialism to capitalism (1992–2005). They
determined a turning point in the hypothesised
correlation between subjective well-being and
income disparity. This correlation was positive
and essential in the first period of the transition
period, but then became significantly negative.
The turning point was found to be 1996. This
change is explained by the fact that economic
segregation was first perceived as ensuring
opportunities for obtaining higher incomes in the
1
Eurobarometer is a panel survey of European households,
held annually since 1974.
2
SOEP (socio-economic panel) is a panel survey of German
households held annually since 1984.
3
World Values Survey (WVS) is a research project that
brings together social scientists from all over the world who
study values and their impact on social and cultural life.
future, but then, it became clear that not each
person can take advantage from opportunities
offered by this more pronounced inequality,
which resulted in a more negative assessment of
existing differences.
Along with assessing the magnitude of the
measured effect, some researchers also analyse
quantitative information. Alesina et al., (2004)
demonstrated that a 1% increase in the Gini
coefficient corresponded to a $2,950 increase in
the annual income level in the USA (8.7% of the
total income) and $474 in Europe (4.2% of the
total income level). Schwarze and Härpfer (2007)
estimated the SOEP data and found that the effect
was more moderate. At the same time, in all of
the above-mentioned studies, the scale of the
effect is measured as a percentage of the
subjective well-being range. Nevertheless, while
the SOEP well-being scale has 10 points from 0
to 10, the British Household Panel Survey
(BHPS
4
) offers a scale ranging from 1 to 7.
Hagerty (2000), Schwarze and Härpfer (2007),
Winkelmann and Winkelmann (2010), and Rozer
and Kraaykamp (2013) offer five different scales
for estimating the levels of subjective well-being,
which makes comparative analysis more
complicated.
Some studies dealing with economic disparity
and happiness also analysed the role of mediate
variables to determine subjective groups with the
greatest inequality correlation, aiming to better
understand the specific conditions under which
income disparity can influence subjective well-
being. Alesina et al., (2004), based on data for
Europe, note that inequality has a greater impact
on the poor population and the left (since it exerts
a more pronounced influence on their wellbeing)
as compared to the right and better-off part of the
population. This finding was also confirmed by
Vandendriessche (2012). At the same time,
Grosfeld and Senik (2010) found a direct
relationship between well-being and economic
segregation only for the right.
Regarding the role of individual earnings, Oshio
and Kobayashi (2010) revealed that the effect of
income disparity on life satisfaction was negative
and was essential only for the two lowest
quintiles of material wealth distribution.
4
British Household Panel Survey (BHPS) is a panel survey
of British households, which represents a review of social and
economic research. The British households sample was first
drawn up and surveyed in 1991.
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Clark (2003) showed that the dependence
between regional income disparity and personal
well-being was stronger and more positive for
individuals whose earnings were becoming more
mobile over time. According to Oshio and
Kobayashi (2010), the interdependence between
life satisfaction and economic disparity is more
negative for youth, women, people with
vulnerable positions in the labour market, and the
politically centred part of the population.
Some researchers note the mediating role of
personal values instead of demographic
determinants. Biancotti and D’Alessio (2008)
note a more negative impact of inequality on
individuals reporting moderation values. The
researchers Rozer and Kraaykamp (2013) show a
more negative (or less positive) influence of the
Gini coefficient on well-being in Europe for
people who promote equality and rely on a higher
degree of social and institutional trust. As
expected, if the income distribution offers
information about a person’s future potential
status, as demonstrated by Ferrer-i-Carbonell and
Ramos (2014), the impact of inequality is more
pronounced for people with higher (self-
estimated) risk avoidance factors according to
the 1997–2007 SOEP data. The impact of the
Gini index on overall life satisfaction is twice as
negative for persons with the highest risk
avoidance scores (on a 10-point scale) in contrast
to those reporting a modal score of five.
An essential personal value is the perceived
degree of fairness of the economic system.
According to Oshio and Kobayashi (2010), the
influence of economic segregation on life
satisfaction is alleviated by fairness toward other
people, as perceived by a person, and the degree
of trust in others. Bjornskov et al. (2013) showed
that the perceived fairness of income acquisition
ways had a certain impact on the relationship
between the inequality of earnings and subjective
well-being.
The diversity of the considered samples makes it
difficult to conceptualise the obtained results.
Another reason is that researchers have not
accepted a uniform measure of inequality. Most
authors suggest using the Gini coefficient, but
still, there is no uniform opinion regarding the
level at which this coefficient should be used (a
region or a country). The majority of studies
analyse data providing only rough information
on the distribution of earnings. Some studies
1
BRFSS (Behavioral Risk Factor Surveillance System) is a
US health survey programme that considers behavioural risk
factors.
assess inequality at the local level relying on data
for Great Britain, Japan, Russian Federation, and
Germany (Senik, 2004; Clark, 2003; Schwarze &
Härpfer, 2007; Oshio & Kobayashi, 2010).
A valuable study by Brodeur and Flèche (2013)
involves large-scale data to analyse inequality
indicators at the local level; the authors analyse
information from the American Behavioral Risk
Factor Surveillance System (BRFSS
1
).
Winkelmann and Winkelmann (2010)
investigate the data from the 2002 Swiss
Household Panel and show correlations between
inequality factors at different levels, including
municipalities, cantons, and regions.
The aggregation degree is important since the
Gini coefficient typically changes only
insignificantly over time. Thus, Graham and
Felton (2006) demonstrate for Chile that the Gini
coefficient values in the 2000s were similar to
those in the 1960s regardless of the essential
socio-economic changes that occurred in this
period.
However, the above-mentioned non-essential
changes in the inequality degree do not cancel the
assumption that it is closely interrelated with
some other variable essential for happiness. The
inequality of earnings at the local or state level
can be indicative of the level of unemployment
or the industry structure, which can also impact
subjective well-being. Further examination is
required to determine individual contributions of
economic disparity and other variables.
However, satisfactory observations are not
always available at the aggregate level. The array
of potentially relevant variables of the aggregate
level is frequently too close to the formal
quantity of independence degrees used for the
analysis. For example, when analysing GSS or
Eurobarometer data, the inequality of earnings
provides a negative but non-essential coefficient.
The reason for this is a certain linear dependence
between the considered variables (Oishi et al.,
2011): if one disregards unemployment benefits
as a variable closely associated with inequality,
the inequality coefficient turns out to be negative
and significant. Verme (2011) states that the
relative invariance of the assessed Gini
coefficient makes it predisposed to
multicollinearity with other variables at the
aggregation level.
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The present study, although not claiming to
suggest a universal solution to the above-
mentioned problems, reveals the correlation
between subjective well-being, the level of
earnings and subjective perception of economic
disparity, based on the data for forty-four
Russian regions obtained in October-November
2019.
Methodology
The research methods applied in the paper
involve focus groups and quantitative survey. A
total of 1,745 persons aged 18 to 74 were
interviewed during the quantitative survey, those
from 44 regions of the Russian Federation,
including Moscow, regional centres and small
towns in Central Russia. The survey was carried
out by telephone interviewing. In addition, 9
focus group meetings were held in Moscow,
Vladimir and Gus Khrustalny, with a total
number of the respondents being 90 (30 persons
– aged 20-30, students and specialists with higher
education, 30 persons – aged 35-55 having
secondary education, 30 persons – aged 56+,
having secondary education).
Results
1. Economic inequality as perceived
subjectively
The economic metrics of inequality measured
with the help of economic statistics are not fully
compatible with those measured by sociological
surveys. However, even a rough comparison
shows that subjective perception of inequality
has increased substantially more than that
measured objectively. According to the
quantitative survey results, now, 30 years after
the collapse of the USSR, 82% of the respondents
expressed their resentment of economic
inequality. Only 18% reported that they felt no
indignation at economic inequality (4% “causes
no revolt” and 14% “more likely, does not cause
revolt”).
The survey results show that the vast majority of
the respondents across all demographic groups
are outraged by the economic inequality. This
form of inequality is somewhat less resented in
the younger age group (79% of the respondents
are indignant), while it is most resented in the 41-
60 age group (85% of the respondents).
Table 1.
Assess to what extent you are indignant about the economic inequality.
Age, years
Total for the array
18-30
31-45
46-60
61+
Does not cause any revolt
4%
4%
4%
3%
3%
More likely, does not cause
revolt
14%
12%
17%
12%
15%
More likely, makes you feel
indignant
40%
47%
41%
36%
40%
Causes strong revolt
42%
37%
38%
49%
42%
Gender
Total for the array
Men
Women
Does not cause any revolt
4%
5%
3%
More likely, does not cause
revolt
14%
13%
15%
More likely, makes you feel
indignant
40%
37%
43%
Causes strong revolt
42%
45%
39%
Place of residence
Total for the array
Moscow
Regional
centres
Small and medium-
sized cities
Does not cause any revolt
4%
5%
2%
4%
More likely, does not cause
revolt
14%
16%
14%
12%
More likely, makes you feel
indignant
40%
43%
40%
38%
Causes strong revolt
42%
36%
43%
46%
Education
Total for the array
Higher education
Secondary, specialised
secondary education
Does not cause any revolt
4%
4%
4%
More likely, does not cause
revolt
14%
15%
11%
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More likely, makes you feel
indignant
40%
41%
40%
Causes strong revolt
42%
40%
45%
Monthly income, thousand roubles
Total for the array
Up to 20
20–60
60+
Does not cause any revolt
4%
3%
4%
5%
More likely, does not cause
revolt
14%
11%
15%
18%
More likely, makes you feel
indignant
40%
36%
43%
45%
Causes strong revolt
42%
50%
38%
32%
Source: received by the authors
As expected, the economic inequality is less
resented in Moscow (79% of the respondents, of
which 43% “rather resent economic inequality”
than “strongly resent it”), while it is most
resented by the residents of smaller towns and
cities (84%). As it was also expected, people with
high income resent economic inequality least of
all (77% of the respondents), while the greatest
indignation is shown by people with low income
(86%).
In order to properly assess the perception of
economic inequality, it is necessary to assess the
source of its origin. This aspect was particularly
emphasised in the focus groups. The thing is that
the sources of high incomes, as expressed by the
respondents, can be “earned or deserved” or
“corruption-ridden”. Labour income, even if
subjectively deemed as high, is viewed by the
population as fair and not subject to
expropriation or criminal prosecution of its
owners.
Further, based on a loosely rephrased
Pierre-Joseph Proudhon’s statement
1
“La
propriété, c’est le vol!” (Property is robbery!), we
obtained the following survey results (figure 1).
Figure 1. Agree or disagree with the following statement: “Having property other than a single dwelling
and a car is a sign of unearned income”.
Source: received by the authors
It is important to note that different elements of
corruption are not perceived equally by the
population. A significant circumstance is –
according to the predominant opinion of the
respondents – that it is virtually impossible to get
a serious order without a kickback, since
corruption is an integral part of the existing
economic system.
Thus, according to the vast majority of the
respondents, the main cause of economic
inequality in the country is corruption, i.e.
inequality is unfair.
2. Subjective assessment of current financial
well-being, life satisfaction and chances of
material success
We got the following answers to the question
“Do you think you have a good chance to
improve your standard of living? Rate on a scale
from 1 to 5 where 1 is no chance, 5 – very high”
(Table 2).
1
Pierre-Joseph Proudhon was a French anarchist socialist
who put forward a basic thesis “Property is Theft!” in his
book “What is Property? An Inquiry into the Principle of
Right and of Government” in 1840, which became a slogan
of the 1793 revolution in France.
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Table 2.
Do you think you have a good chance to improve your standard of living? Rate on a scale from 1 to 5 where
1 is no chance, 5 – very high.
Age, years
Total for the array
18-30
31-45
46-60
61+
very low
23
7%
10%
30%
44%
2
22
16%
21%
27%
25%
3
31
36%
37%
29%
19%
4
18
31%
24%
11%
18%
5 – very high
6
11%
8%
3%
1%
Gender
Total for the array
Men
Women
1 – very low
23
20%
26%
2
22
24%
21%
3
31
31%
31%
4
18
18%
18%
5 – very high
6
7%
4%
Place of residence
Total for the array
Moscow
Regional
centres
Small and medium-sized
cities
1 – very low
23
22%
24%
24%
2
22
20%
23%
25%
3
31
32%
29%
31%
4
18
19%
19%
16%
5 – very high
6
7%
6%
4%
Education
Total for the array
Higher education
Secondary, specialised secondary
education
1 – very low
23
21%
27%
2
22
22%
24%
3
31
31%
29%
4
18
21%
13%
5 – very high
6
6%
6%
Monthly income, thousand roubles
Total for the array
Up to 20
20-60
60+
1 – very low
23
31%
19%
13%
2
22
25%
21%
22%
3
31
29%
32%
29%
4
18
12%
22%
24%
5 – very high
6
3%
6%
12%
Source: received by the authors
It is expected that with age the chances of future
wellbeing are assessed to be increasingly reduced
(only 7% of young people and 44% of elderly
respondents assess their chances as very low,
while 11% of the former and 1% of the latter
deem them to be very high). The gender-specific
result seems somewhat unexpected: only 4% of
women compared to 7% of men assess their
chances as very high, at the same time 26% of
women and 20% of men believe that their chance
of material wellbeing is neglectful. Probably this
is explained by the gender discrimination in
wages. The residents of small towns are less
likely to assess their chances as very high,
compared to the opinions of those residing in
regional centres and in Moscow (4% versus 6%
and 7%, respectively).
Irrespective of the educational level, 6% of the
respondents both in the group with higher
education and the group having secondary and
secondary specialised education assessed their
chances as very high. However, education does
not influence the views when assessment of
chances is declared to be very low – 21% in the
respondents with higher education and 27% in
the respondents having no higher education.
And, as expected, the chances of success are
assessed to be higher as the income level
increases. A total of 12% of the respondents with
the income level above the average assess their
chances of success as very high; the same
expectations are specific of 6% of the
respondents with the average income and only
3% of the respondents with low income.
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Similarly, the chances are rated as very low in
13% versus 19% versus 31% respectively.
The assessment of chances of material success
depends mainly on the age and income level. The
younger the respondents, the less they rate their
chances to be very low; the higher their income
level, the more they rate their chances as very
high.
Highly illustrative is the fact that 45% of the
respondents assess their chances of improving
their plane of living as low and extremely low,
which is indicative of a very high level of social
pessimism which may escalate into social
tension. Considering that 23% of the surveyed
young people, 57% of the pre-retirement-age
respondents and 69% of the retirement-age
respondents assessed their chances of life quality
improvement as low and very low, it can be
safely assumed that this dramatically narrows the
planning horizon and draws the perception of the
future in rather gloomy colours. The perception
of the future as threatening, in turn, leads to stress
and intense emotional crisis in the society.
At the same time, 48% of the population state that
their current wages do not allow them to cope
with material distress and they experience
regular financial difficulties (figure 2).
Figure 2. Your current salary.
Source: received by the authors
One can state that income inequality is perceived
as high in the society; 82% of the respondents
resent it. A total of 48% perceive their income
level as low, causing them to experience
financial difficulties on a regular basis. At the
same time, 48% of the population perceive their
chances to improve financial situation as high or
very high, while 45% deem them to be low or
very low. The chances of success are treated as
lowest in small and medium-size towns, being
the highest in Moscow. At the same time, the
opinion that economic success is reached through
political ties is most popular in Moscow; this
approach is not favoured in small cities where the
need for hard work for getting money is a
preferable option; the latter position (hard work)
is valued least of all in Moscow. Moreover, as the
distance from the capital increases, the people are
more likely to demand a salary cap (coefficient
0.38) (Tables 3-4).
Table 3.
Assess the extent to which the “Political connections” factor can influence a person’s material success in
Russia, on a scale from 1 to 5 where 1 is for ‘does not influence at all’ and 5 is for ‘influences greatly’.
Age, years
Total for the array
18-30
31-45
46-60
61+
1 – does not influence at all
2%
2%
2%
1%
2%
2
3%
2%
4%
3%
3%
3
12%
9%
12%
13%
12%
4
27%
25%
28%
27%
32%
5 – influences greatly
58%
63%
55%
55%
52%
Gender
Total for the array
Men
Women
1 – does not influence at all
2%
2%
1%
2
3%
2%
4%
3
12%
10%
12%
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4
27%
25%
30%
5 – influences greatly
58%
60%
53%
Place of residence
Total for the array
Moscow
Regional
centres
Small and medium-
sized cities
1 – does not influence at all
2%
2%
1%
3%
2
3%
3%
4%
3%
3
12%
10%
13%
11%
4
27%
29%
25%
29%
5 – influences greatly
58%
56%
58%
55%
Education
Total for the array
Higher education
Secondary, specialised
secondary education
1 – does not influence at all
2%
1%
2%
2
3%
3%
3%
3
12%
12%
11%
4
27%
29%
26%
5 – influences greatly
58%
55%
57%
Monthly income, thousand roubles
Total for the array
Up to 20
20-60
60+
1 – does not influence at all
2%
2%
2%
3%
2
3%
2%
4%
3%
3
12%
12%
12%
8%
4
27%
28%
26%
34%
5 – influences greatly
58%
56%
57%
53%
Source: received by the authors
Table 4.
What do you think is the government’s role in setting a wage ceiling?
Age, years
Total for the array
18-30
31-45
46-60
61+
1 – the government should not be
engaged in this
16%
19%
14%
17%
14%
2
10%
13%
9%
10%
9%
3
19%
20%
22%
18%
16%
4
17%
16%
21%
15%
17%
5 – the responsibility for this lies
entirely with the government
38%
32%
35%
40%
44%
Gender
Total for the array
Men
Women
1 – the government should not be
engaged in this
16%
18%
14%
2
10%
10%
10%
3
19%
19%
19%
4
17%
17%
17%
5 – the responsibility for this lies
entirely with the government
38%
36%
39%
Place of residence
Total for the array
Moscow
Regional
centres
Small and medium-
sized cities
1 – the government should not be
engaged in this
16%
18%
15%
13%
2
10%
12%
9%
9%
3
19%
19%
18%
20%
4
17%
18%
18%
15%
5 – the responsibility for this lies
entirely with the government
38%
32%
40%
42%
Education
Total for the array
Higher education
Secondary, specialised
secondary education
1 – the government should not be
engaged in this
16%
17%
14%
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2
10%
12%
6%
3
19%
19%
19%
4
17%
17%
19%
5 – the responsibility for this lies
entirely with the government
38%
35%
43%
Monthly income, thousand roubles
Total for the array
Up to 20
20-60
60+
1 – the government should not be
engaged in this
16%
13%
16%
29%
2
10%
7%
11%
15%
3
19%
18%
20%
16%
4
17%
17%
18%
12%
5 – the responsibility for this lies
entirely with the government
38%
44%
35%
28%
Source: received by the authors
Thus, one can conclude that in big cities people
count on themselves, while in small towns – on
the government, since they consider the chances
of success to be low.
Figure 3 shows the results of subjective life
satisfaction opinions.
Figure 3. Rate to what extent you are satisfied with your life on a scale from 1 to 5 where 1 is not satisfied,
2 is more likely not satisfied, 3 is moderately satisfied, 4 is more likely satisfied, 5 is satisfied.
Source: received by the authors
Predictably, life satisfaction is lower among
people with low incomes. However, although
economic inequality is perceived as unfair due to
corrupt incomes and causes strong revolt of the
population (82%), the authors were unable to
find a correlation between subjective well-being
and inequality. A total of 34% of the respondents
are satisfied or rather satisfied with their life and
only 21% are not satisfied or more likely not
satisfied.
The higher the respondents’ assessment of their
chances of success, the more frequently they
state that their salary allows them to stay up –
0.31, that they consider their salary to be fair –
0.38, the more satisfied they are with their life –
0.33, the less frequently they believe that
unemployment benefits should be increased
and/or a salary cap should be imposed (negative
coefficients 0.34 and 0.3 respectively) and the
less frequently they think that poverty is a result
of injustice (negative coefficient 0.38).
That is, dissatisfaction with inequality is lower
among those who are poor today but expect to
become well-to-do in the future than among
those who expect to be poor at both temporal
points.
3. Mechanisms of financial success as
perceived by the population
The subjective assessment of both – one’s own
well-being and the possibility of its improvement
– depends to a large extent on two circumstances:
1) the factors perceived by the individual as
mechanisms of success;
2) the individual’s rank in his/her reference
group.
In the course of the survey, the respondents were
asked to consider both meritocratic and non-
meritocratic factors in terms of influence on
material success. Among the non-meritocratic
factors, the following were suggested (Table 5).
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Table 5.
Non-meritocratic factors influencing material success.
Factor
% of respondents who rated this factor as substantial
and very strong
Origin from a wealthy family
88
Acquaintance with the right people
92
Political connections
85
Ethnicity
33
Religious affiliation
14
Gender
28
Engaging in corruption
58
Political preferences
46
Source: received by the authors
Thus, according to the respondents, the non-
meritocratic factors that have the greatest impact on
material success in Russia are:
(a) acquaintance with the right people, (b) origin
from a wealthy family, (c) political connections.
Among the meritocratic factors, the following are
presented in Table 6.
Table 6.
Meritocratic factors influencing material success.
Factor
% of respondents who rated this factor as substantial
and very strong
Good education of the individual
52
Professional ambitions
64
Inborn aptitudes
54
Hard work
47
Source: received by the authors
In general, the following meritocratic factors are
viewed as relevant for economic success: (a)
professional ambitions, (b) education and (c)
inborn aptitudes.
Thus, in the opinion of the population, the
Russian society is dominated by non-meritocratic
forms of inequality connected with corruption
and affiliation to certain political circles. These
forms of inequality are assessed by the
population as unfair, but do not influence the
subjective attitudes to well-being.
4. Individual’s rank in a reference group
With half of the population experiencing
financial difficulties, people compare their
situation with that of others. The older the
respondents, the less frequently they compare
themselves with reference groups (65% of young
people and 45% of elderly people resort to
comparing their situation with others). The vast
majority of people compare themselves with
their friends, neighbours and relatives. The
reference group next in importance is the
colleagues, followed by celebrities (about 7% of
the respondents in all demographic groups
compare themselves with the latter). People with
secondary education and low income compare
themselves with celebrities somewhat more
frequently, which cannot but worsen their
psychological condition which is reflected in
their subjective assessment of own chances of
success (figures 4 and 5).
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Figure 4. Do you compare your financial well-being with others?
Source: received by the authors
Figure 5. If you compare your financial well-being with that of your environment where do you rank
yourself on a scale from 1 to 5.
Source: received by the authors
A total of 50% of the surveyed people having no
higher education, those with low income, more
often rate their position in their own environment
as low and very low. Meanwhile 4 per cent of the
low-income people, 14 per cent of the middle-
income people and 24 per cent of the people with
above-average income rate their position as high
or very high.
Thus, the main reference group is friends,
neighbours and relatives; the number of
respondents who assess their position in the
reference group as low and very low is 3.5 times
more than the number of those who assess their
position as high and very high (39% versus 11%).
The number of people who compare their well-
being with a reference group is 1.7 times more
than the number of those who do not compare
themselves with anyone else (58% vs. 35%). The
problem is that the process of comparison always
forces an individual to make efforts – if not to
win, then at least not to lose out in the
competition with representatives of a reference
group. This is one of the factors shaping debt
burden of the population (the American version:
“Keeping up with the Joneses”). At the same
time, the higher the individual evaluates
himself/herself in his/her environment, the
higher his/her life satisfaction – the correlation
coefficient is 0.26.
Stated differently, the information about the
individual’s revealed rank in income distribution
is more important in identifying his/her
satisfaction than the relative wage level. It is also
interesting to note the match between the number
of people who are satisfied with their life (34%
in our sample) and the people who do not
compare themselves to anyone else – 35%.
Discussion
Despite the findings of numerous studies that
revealed a correlation between subjective well-
being and perceived inequality, this match was
not found in the survey of our – sufficiently
representative – sample; nor could we find any
correlation between the perceived
fairness/unfairness of the economic system and
subjectively treated high/low well-being. The
only match we obtained was a quite evident
overlap with the work of Oishi et al., (2011)
stating that the impact of inequality on subjective
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well-being being is negative for low-income
individuals.
Two explanations are possible for this. Firstly, it
is the use of different methodologies and scales
(the described-above sources represent socio-
economic studies and use the scales ranged from
6 to 10, while the present research is of socio-
psychological nature using the scale with the
range of 4). Secondly, one should take into
consideration the impact of serious socio-
economic upheavals that have taken place in the
country since 1991, when the population, totally
unprepared for the market economy, found itself
immersed in capitalism, with capitalists
unprepared for the same. As stated above,
Grosfeld and Senik (2010) revealed, using
Poland as an example, that the relationship
between inequality and subjective well-being
was positive and significant in the early years of
transition from socialism to capitalism, but,
starting from 1996, it became substantially
negative. The reason is that originally it was
viewed as a platform providing opportunities for
future higher incomes, but subsequently it led to
negative comparative assessment of differences,
when it became clear that not everyone would be
able to exploit the opportunities promised by the
growing inequality. Similar processes are likely
to have taken place in the Russian society.
However, from 2000 onwards, the country
embarked on a course towards state capitalism,
which resulted in considerable improvement of
state employees’ financial well-being versus
deterioration of the financial health of small
business. This considerably reduced the
economic inequality of the population, shifting it
to the status of political inequality between the
state (and business structures fused into it) and
the population. After that, the economic crisis,
which broke out in 2014 and continues to this
day, intensified this inequality, though did not
lead to economic stratification of the population.
All of these political-economic processes may
have influenced the public perception of
inequality, with the greatest resentment caused
by corrupt incomes. Further research is needed to
identify the reasons of differences in the derived
data.
In addition, as mentioned above, it is highly
likely that inequality is strongly correlated with
some other variables having an independent
impact on subjective well-being. Further socio-
psychological research could shed light on
whether such correlation between inequality and
people’s values exists.
Conclusions
The following conclusions can be drawn from the
present research. The absolute majority of the
respondents believe that the main cause of
economic inequality in the country is corruption,
i.e. inequality is unjust and is strongly resented
by 82% of the respondents.
Subjective assessment of a person’s chances of
material success depends mainly on the age and
income level. The younger the respondent, the
less often he/she assesses his/her chances as very
low; the higher the respondent’s income level,
the more often he/she assesses his/her chances as
very high.
The chances of success are valued as the lowest
in small and medium-sized cities, and as the
highest – in Moscow. At the same time, the need
for political connections in order to achieve
economic success is deemed to be the most
important factor in Moscow, being the issue of
least concern in smaller cities. At the same time,
the need for hard work is valued most highly in
smaller cities, not being an issue of priority in
Moscow. In addition, a negative correlation of
0.38 was found between the city size and demand
for a salary cap. These data are evident of acutely
perceived inequality between different regions of
the country and its administrative/territorial units
– when people living in small and medium-sized
cities can only rely on working hard in the
absence of useful connections, but still fail to
achieve financial success, which makes them
demand a wage ceiling for others.
Finally, proceeding from the people’s subjective
assessment of own chances of economic success,
it can be assumed that people in big cities rely
more on themselves, while in small and medium-
sized cities – on the government.
Despite the fact that, according to the opinions of
the population, the Russian society is dominated
by non-meritocratic forms of inequality
associated with corruption and affiliation with
certain political circles, no correlation was found
between the perceived unfair inequality and
subjective well-being. However, negative
correlation (with a coefficient of 0.33) was
revealed between the resent of inequality and
assessment of own prospective mobility. This
means that dissatisfaction with inequality is
lower among those who are poor today but
expect to become prosperous in the future than
among those who accept poverty as inevitable
both now and in the future.
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The information about the individual’s revealed
rank in income distribution is more important in
identifying his/her satisfaction than the relative
wage level. A positive correlation of 0.26 was
found between the individual’s rank in a
reference group and his/her subjective well-
being.
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