Resource boom and inequality: Kazakhstan as a case study

Peter Howie, Zauresh Atakhanova

Research output: Contribution to journalArticle

14 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)71-79
Number of pages9
JournalResources Policy
Volume39
Issue number1
DOIs
Publication statusPublished - Mar 2014

Fingerprint

Kazakhstan
income distribution
income
rural area
resource
resources
public health
urban area
labor
household income
labor market
health care
regression analysis
education
Resources
low income
Income distribution
Rural areas
Urban areas
Household

Keywords

  • Inequality
  • Panel-data analysis
  • Q15
  • Q23
  • Q32
  • Q33
  • Resource curse

ASJC Scopus subject areas

  • Economics and Econometrics
  • Management, Monitoring, Policy and Law
  • Law
  • Sociology and Political Science

Cite this

Resource boom and inequality : Kazakhstan as a case study. / Howie, Peter; Atakhanova, Zauresh.

In: Resources Policy, Vol. 39, No. 1, 03.2014, p. 71-79.

Research output: Contribution to journalArticle

Howie, Peter ; Atakhanova, Zauresh. / Resource boom and inequality : Kazakhstan as a case study. In: Resources Policy. 2014 ; Vol. 39, No. 1. pp. 71-79.
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