European Rust Belts. West-East Comparisons – and Beyond
International Conference, Regensburg, 7-8 May 2020
Call for Papers
Deadline for submissions: 15 August 2019
IOS Working Papers No. 381 ist erschienen
Natural Resources and Income Inequality in Developed Countries: Synthetic Control Method Evidence, Christopher Hartwell, Roman Horvath, Eva Horvathova, and Olga Popova, 33 S., IOS Working Papers 381, April 2019.
We examine the causal effect of natural resource discoveries on income inequality using the synthetic control method on data from 1947 to 2009. We focus on the natural discoveries in Denmark, Netherlands and Norway in the 1960-1970s and use top 1% and top 10% income share as the measure of income inequality. Many previous studies have been concerned that natural resources may increase income inequality. To the contrary, our results suggest that natural resources decrease income inequality or have no effect. We attribute this effect to the high institutional quality of countries we examine.