IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/88821.html
   My bibliography  Save this paper

Contribution to income inequality by income source: A comparison across ethnic groups in Vietnam

Author

Listed:
  • Nguyen, Hien
  • Doan, Tinh
  • Quang Tran, tuyen

Abstract

This study explores the dynamics of income and income inequality in Vietnam from 2004 to 2014. Two main sub-population groups 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 income gap among ethnic groups has increased over the last decade. The Gini index decomposition indicates that wages and nonfarm 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 decreasing contribution of the agricultural sector to overall household income. The changes in income inequality in Vietnam by income sources reflect the economic structure change of the economy from the agricultural reliance to non-agricultural economic activities.

Suggested Citation

  • Nguyen, Hien & Doan, Tinh & Quang Tran, tuyen, 2017. "Contribution to income inequality by income source: A comparison across ethnic groups in Vietnam," MPRA Paper 88821, University Library of Munich, Germany, revised 18 Jan 2018.
  • Handle: RePEc:pra:mprapa:88821
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/88821/1/MPRA_paper_88821.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tinh Doan & Quan Le & Tuyen Quang Tran, 2018. "Lost in Transition? Declining Returns to Education in Vietnam," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(2), pages 195-216, April.
    2. Janine Berg (ed.), 2015. "Labour Markets, Institutions and Inequality," Books, Edward Elgar Publishing, number 16143.
    3. Branko Milanovic, 2013. "Global Income Inequality in Numbers: in History and Now," Global Policy, London School of Economics and Political Science, vol. 4(2), pages 198-208, May.
    4. Li, Chao & Gibson, John, 2013. "Rising Regional Inequality in China: Fact or Artifact?," World Development, Elsevier, vol. 47(C), pages 16-29.
    5. Dwayne Benjamin & Loren Brandt & Brian McCaig, 2017. "Growth with equity: income inequality in Vietnam, 2002–14," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 15(1), pages 25-46, March.
    6. Oded Galor & Omer Moav, 2004. "From Physical to Human Capital Accumulation: Inequality and the Process of Development," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 71(4), pages 1001-1026.
    7. Michael Epprecht & Daniel Müller & Nicholas Minot, 2011. "How remote are Vietnam’s ethnic minorities? An analysis of spatial patterns of poverty and inequality," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(2), pages 349-368, April.
    8. Haldane, Andrew & Shanbhogue, Rachana & Attanasio, Orazio & Besley, Timothy & Lindert, Peter & Piketty, Thomas & Ventura, Jaume, 2015. "Capital in the 21st century," Bank of England Quarterly Bulletin, Bank of England, vol. 55(1), pages 36-46.
    9. Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-156, February.
    10. Martin Fournier, 2001. "Inequality decomposition by factor component : a “rank-correlation” approach illustrated on the Taiwanese case," Recherches économiques de Louvain, De Boeck Université, vol. 67(4), pages 381-403.
    11. John Gibson, 2016. "Poverty Measurement: We Know Less than Policy Makers Realize," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 3(3), pages 430-442, September.
    12. Rani, Uma. & Furrer, Marianne., 2016. "Decomposing income inequality into factor income components : evidence from selected G20 countries," ILO Working Papers 994934893302676, International Labour Organization.
    13. Valerie Kozel, 2014. "Well Begun but Not Yet Done : Progress and Emerging Challenges for Poverty Reduction in Vietnam," World Bank Publications - Books, The World Bank Group, number 20074.
    14. Thomas Piketty, 2015. "Capital and Wealth Taxation in the 21st Century," National Tax Journal, National Tax Association;National Tax Journal, vol. 68(2), pages 449-458, June.
    15. Rani, Uma. & Furrer, Marianne., 2016. "Decomposing income inequality into factor income components evidence from selected G20 countries," ILO Working Papers 994930893002676, International Labour Organization.
    16. Martin FOURNIER, 2001. "Inequality decomposition by factor component : a “rank-correlation” approach illustrated on the Taiwanese case," Discussion Papers (REL - Recherches Economiques de Louvain) 2001042, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    17. Era Dabla-Norris & Kalpana Kochhar & Nujin Suphaphiphat & Franto Ricka & Evridiki Tsounta, 2015. "Causes and Consequences of Income Inequality; A Global Perspective," IMF Staff Discussion Notes 15/13, International Monetary Fund.
    18. Ms. Era Dabla-Norris & Ms. Kalpana Kochhar & Mrs. Nujin Suphaphiphat & Mr. Franto Ricka & Ms. Evridiki Tsounta, 2015. "Causes and Consequences of Income Inequality: A Global Perspective," IMF Staff Discussion Notes 2015/013, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Mohsen Ayyash & Siok Kun Sek, 2020. "Decomposing Inequality in Household Consumption Expenditure in Malaysia," Economies, MDPI, vol. 8(4), pages 1-15, October.
    3. Nelson R. Ramírez- Rondán & Marco E. Terrones & Diego Winkelried, 2020. "Equalizing growth: The case of Peru," Working Papers 176, Peruvian Economic Association.
    4. Emilia Toczydlowska & Yekaterina Chzhen & Zlata Bruckauf & Sudhanshu Handa & UNICEF Innocenti Research Centre, 2016. "Income Inequality among Children in Europe 2008–2013," Papers inwopa842, Innocenti Working Papers.
    5. Christopher Hartwell, 2022. "Institutions and trade‐related inequality," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 3246-3264, July.
    6. Relwendé Sawadogo & Gervasio Semedo, 2021. "Financial inclusion, income inequality, and institutions in sub-Saharan Africa: Identifying cross-country inequality regimes," International Economics, CEPII research center, issue 167, pages 15-28.
    7. Dirk Bezemer & Anna Samarina, 2019. "Debt shift, financial development and income inequality," DNB Working Papers 646, Netherlands Central Bank, Research Department.
    8. Tushar Agrawal & Ankush Agrawal, 2023. "Beyond Consumption Expenditure: Income Inequality and Its Sources in India," Progress in Development Studies, , vol. 23(1), pages 7-27, January.
    9. Abebe Hailemariam & Tutsirai Sakutukwa & Ratbek Dzhumashev, 2021. "Long-term determinants of income inequality: evidence from panel data over 1870–2016," Empirical Economics, Springer, vol. 61(4), pages 1935-1958, October.
    10. Ọláyínká Oyèkọ́lá, 2021. "Finance and inequality in a panel of US States," Empirical Economics, Springer, vol. 61(5), pages 2739-2795, November.
    11. Iryna Kyzyma & Alessio Fusco & Philippe Van Kerm, 2022. "Distributional Change: Assessing the Contribution of Household Income Sources," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 84(1), pages 158-184, February.
    12. de Haan, Jakob & Sturm, Jan-Egbert, 2017. "Finance and income inequality: A review and new evidence," European Journal of Political Economy, Elsevier, vol. 50(C), pages 171-195.
    13. Contreras, Salvador & Ghosh, Amit & Hasan, Iftekhar, 2023. "The effect of bank failures on small business loans and income inequality," Journal of Banking & Finance, Elsevier, vol. 146(C).
    14. Paravee Maneejuk & Woraphon Yamaka & Songsak Sriboonchitta, 2021. "Does the Kuznets curve exist in Thailand? A two decades’ perspective (1993–2015)," Annals of Operations Research, Springer, vol. 300(2), pages 545-576, May.
    15. Muhammad Qasim & Zahid Pervaiz & Amatul Razzaq Chaudhary, 2020. "Do Poverty and Income Inequality Mediate the Association Between Agricultural Land Inequality and Human Development?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 151(1), pages 115-134, August.
    16. Thornton, John & Tommaso, Caterina Di, 2020. "The long-run relationship between finance and income inequality: Evidence from panel data," Finance Research Letters, Elsevier, vol. 32(C).
    17. Brei, Michael & Ferri, Giovanni & Gambacorta, Leonardo, 2023. "Financial structure and income inequality," Journal of International Money and Finance, Elsevier, vol. 131(C).
    18. Samvel S. Lazaryan & Mariya A. Chernotalova, 2017. "Global Risk of Rising Inequality," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 4, pages 34-46, August.
    19. Yang, Tingru & Li, Hui & Zhang, Lingyue & Chen, Tianqi, 2022. "The impact of city gas on income inequality in China: A regional heterogeneity analysis," Energy Policy, Elsevier, vol. 169(C).
    20. Carolyn Chisadza & Mduduzi Biyase, 2023. "Financial Development and Income Inequality: Evidence From Advanced, Emerging and Developing Economies," Annals of Financial Economics (AFE), World Scientific Publishing Co. Pte. Ltd., vol. 18(01), pages 1-27, March.

    More about this item

    Keywords

    Income inequality; ethnicity; decomposition; Vietnam;
    All these keywords.

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:88821. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.