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Economic Analysis: Theory and Practice
 

Assessing the living standards of the population of Russia's regions based on a cluster analysis

Vol. 20, Iss. 5, MAY 2021

Received: 18 March 2021

Received in revised form: 30 March 2021

Accepted: 14 April 2021

Available online: 28 May 2021

Subject Heading: ECONOMIC ADVANCEMENT

JEL Classification: O15, P46, R13, R23

Pages: 810–828

https://doi.org/10.24891/ea.20.5.810

Tat'yana I. GULYAEVA Orel State Agrarian University (Orel SAU), Orel, Russian Federation
prorector1@orelsau.ru

ORCID id: not available

Elena V. TAKMAKOVA Orel State University named after I.S. Turgenev (OSU), Orel, Russian Federation
takmakovae@mail.ru

https://orcid.org/0000-0001-8333-4820

Subject. We consider the distribution of Russian regions by the standard of living of the population.
Objectives. The study aims at clustering the subjects of the Russian Federation by standard of living indicator, and describing the specifics of the clusters.
Methods. We apply the cluster analysis with the help of the STATISTICA 12 software package. The clustering of Russian regions by selected indicator of living standards rests on the k-means clustering method.
Results. The study identifies five clusters of regions, i.e. those with low, below-average, medium, above-average, and high living standards. The clustering is based on certain indicators of living standards, like per capita monetary income, nominal average monthly wage, average size of pension awarded, minimum wage, life expectancy at birth, the Gini coefficient, consumption expenditure per household member on average, the share of expenditures on food in the structure of consumer expenditure, and others.
Conclusions. Based on the cluster analysis of living standards of Russian regions, we identify five clusters, to which it is appropriate to apply a differentiated State policy for regulating the household income.

Keywords: standard of living, cluster analysis, region

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