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An analysis of the extent of differentials in average earnings in different sectors of the Soviet economy, branches of industry, and occupational groups. This has always been one of the least-known aspects of the post-war Soviet economy, but a new Soviet statistical handbook gives the distributions of average monthly earnings and of annual employment, making possible this analysis of the trends in inequality over time. The claim of a "Soviet income revolution" seems to be accurate: since 1950 earnings differentials have been reduced substantially and to the point where the inequality is now the same as in the United States. However, the actual amount of the average differential in rubles and in purchasing power has been increasing while the percentage decreases. The Soviet distributions are also much less symmetrical than similar distributions in the United States. (See also RM-6169.)

This report is part of the RAND Corporation research memorandum series. The Research Memorandum was a product of the RAND Corporation from 1948 to 1973 that represented working papers meant to report current results of RAND research to appropriate audiences.

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