Human Capital and Wage Level: Regional Aspect

2026

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DOI 10.52821/2789-4401-2026-3-158-173
Data confidence 85 high
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Abstract

Purpose of the research is to identify the degree of influence of human capital elements on the level of wage distribution in the regions of Kazakhstan. Methodology. The study was carried out on the basis of the collection and econometric analysis of current data of the Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan. Modeling includes the method of weighted least squares, calculation of margin effects and analysis of non-linear relationships to build an age profile of wages. Methods of comparative and structural analysis, a graphical method for visualizing the results, as well as a synthesis of studies by foreign and Kazakhstani authors were applied. Originality / value of the research. This study reveals the key characteristics that are most valued in monetary terms in the Kazakhstan labor market. It presents a perspective on the causes of regional inequality through the lens of workers' attainment of the next level of education or migration to an attractive region. The proposed recommendations are aimed at eliminating wage gaps across various population groups. Findings. The Kazakhstan labor market is highly fragmented at the regional level, divided into five top regions and fifteen remaining regions. Empirical evidence has shown that higher levels of education offset the benefits of internal labor migration. The market follows an inverted U-shaped profile, peaking at age 45 for both men and women, followed by a gradual decline in wages. The country exhibits a bias toward rewarding managerial competencies, which is reflected in their predominance over expertise and narrow focus.