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The effect of various income sources on income inequality: a comparison across ethnic groups in Vietnam

Author

Listed:
  • Hien Nguyen

    (International Labour Organization)

  • Tinh Doan

    (University of Economics and Business, Vietnam National University, Hanoi
    The University of Waikato)

  • Tuyen Quang Tran

    (University of Economics and Business, Vietnam National University, Hanoi)

Abstract

This study explores the dynamics of income and income inequality in Vietnam from 2004 to 2014. Two main population subgroups are investigated: the ethnic majority, known as the Kinh people, and the minority group, which includes 53 minor ethnicities in Vietnam. The findings show that the income gap among ethnic groups has increased over the last decade. The Gini index decomposition indicates that wages and nonfarm business income are the two main determinants of income inequality. Cultivation and agricultural side-line incomes were relatively evenly distributed, despite their recent smaller equalizing effect. Both sub-population groups have experienced a declining contribution from the agricultural sector to overall household income. Changes in income inequality in Vietnam by income source reflect the change in the structure of the economy from reliance on agriculture to non-agricultural economic activities.

Suggested Citation

  • Hien Nguyen & Tinh Doan & Tuyen Quang Tran, 2020. "The effect of various income sources on income inequality: a comparison across ethnic groups in Vietnam," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(2), pages 813-834, February.
    • Handle: RePEc:spr:endesu:v:22:y:2020:i:2:d:10.1007_s10668-018-0221-0
    DOI: 10.1007/s10668-018-0221-0
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    2. Min Cui & Jizhou Zhang & Xianli Xia, 2022. "The Relationship between Child Rearing Burden and Farmers’ Adoption of Climate Adaptive Technology: Taking Water-Saving Irrigation Technology as an Example," Agriculture, MDPI, vol. 12(6), pages 1-22, June.
    3. Lisa Hiwasaki & Thai Thi Minh, 2022. "Negotiating marginality: Towards an understanding of diverse development pathways of ethnic minorities in Vietnam," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(8), pages 1455-1475, November.
    4. Ackermann, Klaus & Awaworyi Churchill, Sefa & Smyth, Russell, 2024. "Estimating the relationship between ethnic inequality, conflict and voter turnout in Africa using geocoded data," World Development, Elsevier, vol. 180(C).
    5. Tran, Tuyen & Vu, Huong, 2019. "Heterogeneous effects of livelihood strategies on household well-being: An analysis using unconditional quantile regression with fixed effects," MPRA Paper 103849, University Library of Munich, Germany, revised 20 Jan 2020.
    6. Van Le, Dao & Tran, Tuyen Quang, 2022. "Does the private sector increase inequality? Evidence from a transitional country," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 451-466.

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    More about this item

    Keywords

    Income inequality; Ethnicity; Decomposition; Vietnam;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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