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Sometimes, Winners Lose: Economic Disparity and Indigenization in Kazakhstan

Author

Listed:
  • Ira N. Gang

    (Rutgers University)

  • Achim Schmillen

    (The World Bank)

Abstract
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.

Suggested Citation

  • Ira N. Gang & Achim Schmillen, 2014. "Sometimes, Winners Lose: Economic Disparity and Indigenization in Kazakhstan," Departmental Working Papers 201412, Rutgers University, Department of Economics.
    • Handle: RePEc:rut:rutres:201412
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    Cited by:

    1. Cuberes, David & Schmillen, Achim & Teignier, Marc, 2023. "The aggregate gains of eliminating gender and ethnic gaps in the Malaysian labor market," Journal of Asian Economics, Elsevier, vol. 87(C).

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    More about this item

    Keywords

    Ethnicity; Decomposition; Indigenization; Kazakhstan;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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