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The Impact of Education on Household Income in Rural Vietnam

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  • Hung Van Vu

    (Faculty of Political Theory, Thuongmai University, Hanoi 100000, Vietnam)

Abstract

Using data from the 2018 Vietnam Household Living Standard Survey, our study investigates the impact of education on household income in rural Vietnam. Both mean and quantile regression analyses were employed to analyze the impact of education. We found that education has a positive effect on the household income after controlling for various factors in the models. However, quantile regression analysis reveals that the effect of schooling years increases with quantiles, suggesting that education bring higher returns for richer households. We also found that households with the heads having higher qualifications or vocational education tend to earn higher income levels. Combined together, these findings imply that while education was found to increase household income, it increases income inequality in rural Vietnam. Our research findings suggest that improving the access of poor households to better education is expected to increase their income and reduce inequality in rural Vietnam.

Suggested Citation

  • Hung Van Vu, 2020. "The Impact of Education on Household Income in Rural Vietnam," IJFS, MDPI, vol. 8(1), pages 1-8, February.
    • Handle: RePEc:gam:jijfss:v:8:y:2020:i:1:p:11-:d:322250
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    References listed on IDEAS

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    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. Quang Tran, Tuyen, 2012. "A review on the link between nonfarm activities, land and rural livelihoods in Vietnam and developing countries," MPRA Paper 55850, University Library of Munich, Germany, revised 17 Nov 2013.
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    4. Thelma R. Paris & Valerien O. Pede & Joyce S. Luis & Justin D. McKinley, 2012. "Determinants of Household Income: A Quantile Regression Approach for Four Rice-Producing Areas in the Philippines," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 9(2), pages 65-76, December.
    5. Quang Tran, Tuyen & Anh Tran, Tai & The Tran, Nu & Thi Nguyen, Hai, 2018. "Education and the livelihood of households in the Northwest Region, Vietnam," MPRA Paper 90414, University Library of Munich, Germany, revised 17 May 2018.
    6. Fasih, Tazeen & Kingdon, Geeta & Patrinos, Harry Anthony & Sakellariou, Chris & Soderbom, Mans, 2012. "Heterogeneous returns to education in the labor market," Policy Research Working Paper Series 6170, The World Bank.
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    8. Nguyen, Thanh Viet & Tran, Tuyen Quang, 2018. "Forestland and rural household livelihoods in the North Central Provinces, Vietnam," Land Use Policy, Elsevier, vol. 79(C), pages 10-19.
    9. Tran, Tuyen Quang & Hung Pham, Hiep & Thi Vo, Hoa & Thuy Luu, Hong & Mai Nguyen, Huong, 2019. "Local governance, education and occupation-education mismatch: Heterogeneous effects on wages in a lower middle income economy," International Journal of Educational Development, Elsevier, vol. 71(C).
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    Cited by:

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