Assessing Inequality of Income Distribution and Education in the Regions of Kazakhstan

Abstract

In the current social conditions, the problems of inequality associated with the uneven distribution of income in society is an important research problem. Thus, it is necessary to investigate the level of regional differences in income distribution in developing countries like Kazakhstan. The study aims to assess the influence of income, social expenditures, and inequality in the distribution of education and education costs between different regions of Kazakhstan. Unlike previous scientific papers in this area, this paper uses panel data on the distribution of human capital and income in 17 regions of Kazakhstan. The methodological framework of the research is represented by methods of statistical assessment of economic inequality, such as the indicator of differentiation, reflecting the degree of social and economic inequality. Based on the proposed methodology, we analysed the disparity in the level of education and obtained data on the standard deviations of the distribution of education for the population of the regions of Kazakhstan. According to these data, inequality changes over time and affects the distribution of education and education costs between different areas. Income inequality is slightly higher in Karaganda and East-Kazakhstan regions; other areas have a more equitable income distribution by about 0.05 Gini coefficients. The regression specification shows that large megacities like Shymkent, Almaty, and Astana have a more significant influence, while Mangystau and North-Kazakhstan regions have minor power. The obtained results emphasise the importance ensuring access to education for reducing regional disparities and achieving stability in income distribution.