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Oil Abundance and Income Inequality

Author

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  • Dong-Hyeon Kim

    (Korea University)

  • Shu-Chin Lin

    (SungKyunKwan University)

Abstract

The paper empirically investigates the impact of natural resource abundance, in particular oil, on income disparities. It employs common correlated effects pooled mean group methodology for estimation to account for the cross-country heterogeneity and cross-section dependence in the oil-inequality nexus. In a sample of developed and developing countries, we find that oil abundance as well as oil dependence reduce income inequality. This inequality-reducing effect is highly likely to operate from better education attainments and improved health status due to oil booms.

Suggested Citation

  • Dong-Hyeon Kim & Shu-Chin Lin, 2018. "Oil Abundance and Income Inequality," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(4), pages 825-848, December.
    • Handle: RePEc:kap:enreec:v:71:y:2018:i:4:d:10.1007_s10640-017-0185-9
    DOI: 10.1007/s10640-017-0185-9
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    More about this item

    Keywords

    Oil; Income inequality; Heterogeneous panels;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)

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