Economics at your fingertips  

Resource boom and inequality: Kazakhstan as a case study

Peter Howie and Zauresh Atakhanova

Resources Policy, 2014, vol. 39, issue C, 71-79

Abstract: Our research investigates the impact of a major resource boom on income inequality within Kazakhstan's regions using household-level data across the entire income distribution and within the top and bottom halves of the income distribution. In addition, we evaluate the inequality dynamics separately in urban and rural areas. The theoretical foundation shows that a resource boom will decrease income inequality through the labor market if the non-traded sector is relatively intensive in its use of unskilled labor. Government transfers financed by resource income can further reduce inequality. Our regression analysis indicates that resource booms lower inequality when we control for the effect of changing labor income, institutional quality, education levels, and public health care spending. In addition, quality of institutions is an important equalizing factor for the lower income households in urban areas, but not in rural areas. Public health programs decrease overall inequality in the rural areas; however, they do not affect the bottom half of the income distribution.

Keywords: Resource curse; Inequality; Panel-data analysis (search for similar items in EconPapers)
JEL-codes: Q32 Q33 Q15 Q23 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
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:

Access Statistics for this article

Resources Policy is currently edited by R. G. Eggert

More articles in Resources Policy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-11-11
Handle: RePEc:eee:jrpoli:v:39:y:2014:i:c:p:71-79