Natural resources and income inequality in developed countries: synthetic control method evidence

Christopher Hartwell, Roman Horvath, Eva Horváthová and Olga Popova

Empirical Economics, 2022, vol. 62, issue 2, No 1, 297-338

Abstract: Abstract We examine the causal effect of natural resource discoveries on income inequality using the synthetic control method on data from 1947 to 2009. We focus on the natural discoveries in Denmark, Netherlands, and Norway in the 1960–1970s and use top 1% and top 10% income share as the measure of income inequality. Many previous studies have been concerned that natural resources may increase income inequality. To the contrary, our results suggest that natural resources decrease income inequality or have no effect. We attribute this effect to the high institutional quality of countries we examine.

Keywords: Natural resources; Income inequality; Synthetic control method; Developed countries (search for similar items in EconPapers)
JEL-codes: D31 O13 O15 Q33 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://link.springer.com/10.1007/s00181-021-02023-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: Natural Resources and Income Inequality in Developed Countries: Synthetic Control Method Evidence (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:empeco:v:62:y:2022:i:2:d:10.1007_s00181-021-02023-5

Ordering information: This journal article can be ordered from
http://www.springer. ... rics/journal/181/PS2

DOI: 10.1007/s00181-021-02023-5

Access Statistics for this article

Empirical Economics is currently edited by Robert M. Kunst, Arthur H.O. van Soest, Bertrand Candelon, Subal C. Kumbhakar and Joakim Westerlund

More articles in Empirical Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().