Is the Cost of Living in Russia Really that Low?

21 Pages Posted: 15 Oct 2009

See all articles by Konstantin Gluschenko

Konstantin Gluschenko

Institute of Economics and Industrial Engineering, Siberian Branch of the Russian Academy of Sciences; Department of Economics, Novosibirsk State University

Date Written: December 14, 2008

Abstract

There is a widespread opinion that goods, especially foods, and services in Russia are very cheap as compared to the US. A number of Russian statistical indicators characterizing the cost of living, either directly or indirectly, seemingly corroborate this opinion. This paper demonstrates that these indicators are biased, sufficiently understating the cost of living in Russia. A comparison of Russian actual prices for foods with those in the US evidences that they are comparable. Moreover, the Russian prices are tending to catch up with the US prices.

Keywords: food prices, cost of living, minimum wage, subsistence level, Russia, US

JEL Classification: I31, O57, P22

Suggested Citation

Gluschenko, Konstantin, Is the Cost of Living in Russia Really that Low? (December 14, 2008). William Davidson Institute Working Paper No. 949, Available at SSRN: https://ssrn.com/abstract=1488844 or http://dx.doi.org/10.2139/ssrn.1488844

Konstantin Gluschenko (Contact Author)

Institute of Economics and Industrial Engineering, Siberian Branch of the Russian Academy of Sciences ( email )

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