Heterogeneous impact of natural resources on income inequality: The role of the shadow economy and human capital index
The stylized facts show that natural resource prices are highly volatile. The immediate consequences of such volatility are changes in the labor force’s income distribution and public spending. In this context, this research aims to examine the impact of natural resource rents on inequality, including the role of the shadow economy and the human capital index. We use annual data and second-generation panel data cointegration techniques to correct potential bias caused by slope heterogeneity and cross-section dependence.

