This paper focuses on inequality in living standards across oblasts and regions within
Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan and Uzbekistan. Regional
inequality is an important area of research and policy development. Inequality in
income and consumption are logical outcomes in a market-based economic system. If
inequality within countries exists because of barriers to competition, then inequality can
foment internal tension, and economic and social development within countries is
negatively affected. We examine Living Standards Measurement data from Tajikistan,
Kyrgystan, and Kazakhstan and additional survey data from Uzbekistan. We find that
the most important explanations for the variation in expenditures per capita in the region
are household location, household composition, and education. We find large variation
in per capita expenditure by location within each country, and the differences go beyond
the simple rural-urban distinction. Family structure is also important, and in all