IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Sometimes, Winners Lose: Economic Disparity and Indigenization in Kazakhstan

Listed author(s):
  • Ira N. Gang

    ()

    (Rutgers University)

  • Achim Schmillen

    ()

    (The World Bank)

Several post-Soviet states have introduced policies to improve the relative economic, political or social position of formerly disadvantaged populations. Using one example of such policies – “Kazakhisation” in Kazakhstan – we investigate their impact on the comparative earnings of two directly affected groups, ethnic Russians and ethnic Kazakhs. Oaxaca decompositions show that Kazakhs are better endowed with income generating characteristics but receive lower returns to these characteristics than Russians. The second effect dominates and Kazakhs have comparatively lower average living standards. While “Kazakhisation” may have been successful in a narrow sense – i.e., by empowering Kazakhs to take on leading positions in the public sector – more broadly it has been a self-defeating policy as it has pushed ethnic Russians into jobs that often evolved into positions that (at least in monetary terms) are superior now to those held by Kazakhs.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.sas.rutgers.edu/virtual/snde/wp/2014-12.pdf
Download Restriction: no

Paper provided by Rutgers University, Department of Economics in its series Departmental Working Papers with number 201412.

as
in new window

Length: 20 pages
Date of creation: 10 Sep 2014
Handle: RePEc:rut:rutres:201412
Contact details of provider: Postal:
New Jersey Hall - 75 Hamilton Street, New Brunswick, NJ 08901-1248

Phone: (732) 932-7363
Fax: (732) 932-7416
Web page: http://economics.rutgers.edu/

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as
in new window


  1. Lori Beaman & Raghabendra Chattopadhyay & Esther Duflo & Rohini Pande & Petia Topalova, 2009. "Powerful Women: Does Exposure Reduce Bias?," The Quarterly Journal of Economics, Oxford University Press, vol. 124(4), pages 1497-1540.
  2. Myeong-Su Yun, 2005. "A Simple Solution to the Identification Problem in Detailed Wage Decompositions," Economic Inquiry, Western Economic Association International, vol. 43(4), pages 766-772, October.
  3. DiNardo, John & Lemieux, Thomas, 2001. "Alcohol, marijuana, and American youth: the unintended consequences of government regulation," Journal of Health Economics, Elsevier, vol. 20(6), pages 991-1010, November.
  4. Aldashev, Alisher & Dietz, Barbara, 2014. "Economic and spatial determinants of interregional migration in Kazakhstan," Economic Systems, Elsevier, vol. 38(3), pages 379-396.
  5. Ira N. Gang & Ralitza Dimova, 2004. "Self-Selection And Earnings During Volatile Transition," Departmental Working Papers 200409, Rutgers University, Department of Economics.
  6. Danzer, Alexander M. & Dietz, Barbara & Gatskova, Ksenia & Schmillen, Achim, 2014. "Showing off to the new neighbors? Income, socioeconomic status and consumption patterns of internal migrants," Journal of Comparative Economics, Elsevier, vol. 42(1), pages 230-245.
  7. An, Galina & Becker, Charles M., 2013. "Uncertainty, Insecurity, and Emigration from Kazakhstan to Russia," World Development, Elsevier, vol. 42(C), pages 44-66.
  8. Tansel, Avsit, 2005. "Public-Private Employment Choice, Wage Differentials, and Gender in Turkey," Economic Development and Cultural Change, University of Chicago Press, vol. 53(2), pages 453-477, January.
  9. Hugo Ñopo, 2008. "Matching as a Tool to Decompose Wage Gaps," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 290-299, May.
  10. Esther Duflo, 2005. "Why Political Reservations?," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 668-678, 04/05.
  11. Claudia Olivetti & Barbara Petrongolo, 2008. "Unequal Pay or Unequal Employment? A Cross-Country Analysis of Gender Gaps," Journal of Labor Economics, University of Chicago Press, vol. 26(4), pages 621-654, October.
  12. Bhaumik, Sumon Kumar & Gang, Ira N. & Yun, Myeong-Su, 2006. "Ethnic conflict and economic disparity: Serbians and Albanians in Kosovo," Journal of Comparative Economics, Elsevier, vol. 34(4), pages 754-773, December.
  13. Ben Jann, 2008. "The Blinder–Oaxaca decomposition for linear regression models," Stata Journal, StataCorp LP, vol. 8(4), pages 453-479, December.
  14. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  15. Paolo Verme, 2000. "The Choice of the Working Secto in Transition: Income and non-income determinants of sector participation in Kazakhstan," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 8(3), pages 691-731, November.
  16. Chin, Aimee & Prakash, Nishith, 2011. "The redistributive effects of political reservation for minorities: Evidence from India," Journal of Development Economics, Elsevier, vol. 96(2), pages 265-277, November.
  17. Jennifer Hunt, 2002. "The Transition in East Germany: When Is a Ten-Point Fall in the Gender Wage Gap Bad News?," Journal of Labor Economics, University of Chicago Press, vol. 20(1), pages 148-169, January.
  18. S. Mahendra Dev, 2008. "India," Chapters,in: Handbook on the South Asian Economies, chapter 1 Edward Elgar Publishing.
  19. Alexander M. Danzer & Barbara Dietz & Kseniia Gatskova, 2013. "Migration and Remittances in Tajikistan: Survey Technical Report," Working Papers 327, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
  20. Ira N. Gang & Kunal Sen & Myeong-Su Yun, 2008. "Poverty In Rural India: Caste And Tribe," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(1), pages 50-70, March.
  21. World Bank, 2016. "World Development Indicators 2016," World Bank Publications, The World Bank, number 23969, September.
  22. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
  23. Ronald L. Oaxaca & Michael R. Ransom, 1999. "Identification in Detailed Wage Decompositions," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 154-157, February.
  24. Miner, Luke, 2015. "The unintended consequences of internet diffusion: Evidence from Malaysia," Journal of Public Economics, Elsevier, vol. 132(C), pages 66-78.
  25. Derek Neal, 2004. "The Measured Black-White Wage Gap among Women Is Too Small," Journal of Political Economy, University of Chicago Press, vol. 112(S1), pages 1-28, February.
  26. Andrienko, Yuri & Guriev, Sergei, 2003. "Determinants of Interregional Mobility in Russia: Evidence from Panel Data," CEPR Discussion Papers 3835, C.E.P.R. Discussion Papers.
  27. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-243, May.
  28. Schmillen,Achim Daniel, 2016. "The public/private wage differential in the land of gross national happiness," Policy Research Working Paper Series 7925, The World Bank.
  29. Reimers, Cordelia W, 1983. "Labor Market Discrimination against Hispanic and Black Men," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 570-579, November.
  30. Gang, Ira N & Stuart, Robert C, 2002. "The Political Economy of Russian City Growth," Economic Development and Cultural Change, University of Chicago Press, vol. 50(3), pages 491-508, April.
  31. Barbara Dietz & Kseniia Gatskova & Achim Schmillen, 2011. "Migration and Remittances in Kazakhstan: First Evidence from a Household Survey," Working Papers 304, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
  32. Harry J. Holzer & David Neumark, 2006. "Affirmative action: What do we know?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 25(2), pages 463-490.
  33. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-475, June.
  34. Becker, Charles M. & Musabek, Erbolat N. & Seitenova, Ai-Gul S. & Urzhumova, Dina S., 2005. "The migration response to economic shock: lessons from Kazakhstan," Journal of Comparative Economics, Elsevier, vol. 33(1), pages 107-132, March.
  35. T. Paul Schultz, 1990. "Testing the Neoclassical Model of Family Labor Supply and Fertility," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 599-634.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:rut:rutres:201412. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.