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Spatial wage inequality in Belarus

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  • Aleh Mazol

Abstract

This paper studies the wage inequality in Belarus' districts from 2000 till 2015 following the multistep and multi-mechanism framework. The empirical results show: first, that wage disparities across the districts decreased in the 2000-2012 period and then increased from 2013 to 2015; second, there is the spatial dependency in district wages and increasing separation between districts, and between rural and urban population in Belarus; third, the main economic factors that contribute to decrease in district wage inequality are industrial development, retail trade and agricultural development. Finally, from theoretical point of view this research rejects the inverted U-shaped relationship between spatial inequality and economic development for Belarus and supports the hypothesis made by French economist Thomas Piketty that slow growth rates lead to rising inequality.

Suggested Citation

  • Aleh Mazol, 2016. "Spatial wage inequality in Belarus," BEROC Working Paper Series 35, Belarusian Economic Research and Outreach Center (BEROC).
    • Handle: RePEc:bel:wpaper:35
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    Cited by:

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    More about this item

    Keywords

    economic growth; quantile regression; spatial dependence; stochastic kernel; wage inequality; Belarus;
    All these keywords.

    JEL classification:

    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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