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Income Inequality and Oil Resources: Panel Evidence from the United States

Author

Listed:
  • Edmond Berisha

    (Feliciano School of Business, Montclair State University, Montclair, NJ 07043, USA)

  • Carolyn Chisadza

    (Department of Economics, University of Pretoria, Private Bag X20, Hateld 0028, South Africa)

  • Matthew Clance

    (Department of Economics, University of Pretoria, Private Bag X20, Hateld 0028, South Africa)

  • Rangan Gupta

    (Department of Economics, University of Pretoria, Private Bag X20, Hateld 0028, South Africa)

Abstract

There has been little research examining income distributional consequences from resource abundance and dependency. Using panel evidence from the United States, we find contrasting non-monotonic outcomes from oil abundance in comparison to oil dependency. Oil abundance mitigates inequality within U.S. states. However, the diminishing impact on inequality tends to lessen with higher levels of oil production. The opposite holds true for oil dependency. The findings suggest that income inequality within U.S. states is more vulnerable to oil dependency.

Suggested Citation

  • Edmond Berisha & Carolyn Chisadza & Matthew Clance & Rangan Gupta, 2020. "Income Inequality and Oil Resources: Panel Evidence from the United States," Working Papers 2020103, University of Pretoria, Department of Economics.
    • Handle: RePEc:pre:wpaper:2020103
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    More about this item

    Keywords

    oil resources; income inequality; United States;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

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