Factors Influencing Income Inequality in the Regions of Kazakhstan

Income inequality remains a critical issue in Kazakhstan, despite overall improvements in living standards.This study aims to explore the impact of various economic factors on income inequality across 16 regions of Kazakhstan from 2001 to 2022, addressing gaps in existing research.The study's primary goal is to identify key variables, such as the funds coefficient, household consumption income, unemployment rate, inflation, and minimum subsistence level, that influence the Gini coefficient, which measures income inequality.The research utilizes panel data models, specifically applying fixed effects and random effects models, to conduct a comprehensive analysis of these factors.The data were sourced from official records, including those of the Bureau of National Statistics of the Republic of Kazakhstan.The study includes a Hausman test to determine the appropriate model for analysis.The findings reveal that the funds coefficient, household consumption income, unemployment levels, and poverty rate have a significant positive impact on income inequality, indicating that disparities between the wealthiest and poorest groups contribute to increasing inequality.Conversely, inflation exhibits a negative but minor effect on inequality, suggesting that price stability policies might mitigate income disparity slightly.These results underscore the importance of targeted economic policies to reduce income inequality and support the poorest population groups.The study's limitations include not accounting for migration flows and social factors like access to education, which could further influence inequality levels.The results can inform policy development aimed at improving social and economic conditions in Kazakhstan.Future research should incorporate social and institutional factors to provide a more precise analysis of the dynamics of inequality.This study contributes to the understanding of how macroeconomic variables shape regional income distribution in a transitioning economy.