Inequality of Labor Income in Kazakhstan’s Regions: Trends, Causes and Opportunities for Reduction

In the modern world, income inequality is growing, the share of labor income is decreasing, and the problems of overcoming poverty and equalizing people’s living standards have become acute. The article aimed to study trends in regional and sectoral inequality of labor income in Kazakhstan, identify contradictions and causes of their differentiation, and develop recommendations for reduction. The hypothesis: the assumption that the size of regional inequality of labor income depends on the sectoral specialization of the regional economy. Tasks: review theoretical issues of income inequality, analyze wage trends in Kazakhstan’s regions and their primary industries, and develop recommendations to reduce income inequality. The proof/refutation of the hypothesis was carried out by assessing regional and sectoral differences in the labor incomes of Kazakhstanis and identifying their contradictions. The methods are generalization and concretization, comparisons and analogs, systematic approach, economic and statistical, comparative analysis, Pareto, and indicative. Information base: domestic and foreign scientists’ works, data from the Bureau of National Statistics of the Republic of Kazakhstan, and regional statistical services. Results: the methods of overcoming income inequality in world practice were identified; it was proved that despite wage growth, the share of labor income is decreasing; regional wage inequality in Kazakhstan in 2022 amounted to 2.3 times. It is recommended that regional inequality of labor income be reduced by introducing regional coefficients and shifting taxation from labor income to income from capital and property.

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