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Sources of Regional Income Disparity in Rural Vietnam: Oaxaca-Blinder Decomposition

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Author Info
Takahashi, Kazushi

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Abstract

This paper investigates determinants of regional income disparity in rural Vietnam, with special emphasis placed on the roles of human capital and land. We apply a decomposition method, suggested by Oaxaca and Blinder. We found that returns to assets rather than endowments, especially those of human capital, are one of the leading factors to account for income differences across regions. We also found that substantial improvements of returns to human capital in the Red River delta region are a driving force to catch up with Mekong River delta region. Unexpectedly, differences in land endowment do not strongly correlate with regional income disparity because better access to land in a region was partially offset by lower returns.

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File URL: http://ir.ide.go.jp/dspace/bitstream/2344/536/1/ARRIDE_Discussion_No.95_takahashi.pdf
File Format: application/pdf
File Function: First version, 2007
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Publisher Info
Paper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number 95.

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Date of creation: Mar 2007
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Publication status: Published in IDE Discussion Paper. No. 95. 2007.3
Handle: RePEc:jet:dpaper:dpaper95

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Related research
Keywords: Income inequality; Human capital; Land; Vietnam; Income distribution; Human resources;

Find related papers by JEL classification:
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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  1. Nguyen, Binh Giang, 2008. "Improving the Foreign Direct Investment Capacity of the Mountainous Provinces in Viet Nam," IDE Discussion Papers 152, Institute of Developing Economies, Japan External Trade Organization(JETRO). [Downloadable!]
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