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Growth with Equity: Income Inequality in Vietnam, 2002–14

Author

Listed:
  • Benjamin, Dwayne

    (University of Toronto)

  • Brandt, Loren

    (University of Toronto)

  • McCaig, Brian

    (Wilfrid Laurier University)

Abstract

We use the 2002 through 2014 Vietnam Household Living Standards Surveys to construct comparable measures of household income and estimates of income inequality over this high-growth period. We focus on two questions: How have benefits from growth been distributed; and do changes in the structure of the economy map into changes in inequality? We explore dimensions in which inequality may vary, notably urban versus rural, and by ethnic status. We also decompose inequality by income source to highlight key factors underlying the relatively low levels of inequality during this period. We find that agricultural opportunities played an important role in dampening inequality, but more important has been the steady development of wage-labor markets in both urban and rural areas. An important caveat to the generally rosy picture we paint is the deteriorating position of ethnic minorities. Finally, we draw comparisons with China and document key differences in their growth-inequality experience.

Suggested Citation

  • Benjamin, Dwayne & Brandt, Loren & McCaig, Brian, 2016. "Growth with Equity: Income Inequality in Vietnam, 2002–14," IZA Discussion Papers 10392, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp10392
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    References listed on IDEAS

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    More about this item

    Keywords

    decomposition; income inequality; Vietnam;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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