Inequality Reduction in Mongolia: A Dynamic Income Source Analysis

Manlaibaatar Zagdbazar

MPRA Paper from University Library of Munich, Germany

Abstract: Mongolia's Gini coefficient decreased by 26% over the past 15 years (2007-2022). This period, marked by a mining boom and bust cycle and great economic transformation. This study finds that the reduction in inequality is attributed to shifts in household income composition, including rising shares of wage income and government transfers, and declining shares of self-employment and own-consumption income. The expansion of the formal labor market, particularly in mining, trade, and finance, alongside social welfare programs like child benefits and pensions, has been pivotal. Interestingly, income from own consumption of housing, which has not been extensively considered in the literature, contributed most to the decrease in inequality due to its substantial reduction in both share and concentration. However, herder households remain vulnerable to shocks, and gender/regional disparities persist. This study, analyzing monetary and non-monetary well-being, offers insights into mining-dependent and transition economies seeking inclusive growth.

Keywords: Developing economies; household income composition; income inequality; income sources dynamic decomposition (search for similar items in EconPapers)
JEL-codes: D31 D33 D63 (search for similar items in EconPapers)
Date: 2025-05-15
New Economics Papers: this item is included in nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/125662/1/MPRA_paper_125662.pdf original version (application/pdf)

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: https://EconPapers.repec.org/RePEc:pra:mprapa:125662

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().