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Income mobility in times of economic growth: The case of Viet Nam

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  • Ian Brand-Weiner

    (OECD)

  • Francesca Francavilla

Abstract

This paper analyses income mobility in Viet Nam from 2004 to 2008. The concept of income mobility is important for developed and developing economies, especially for those, such as Viet Nam, witnessing a stable persistent economic growth and profound structural transformations. Income mobility adds to the already established literature on poverty and inequality by quantifying how much households benefit from the economic performance of a country. The analysis shows that Viet Nam’s growth facilitated households’ income mobility. The analysis of the drivers of households’ mobility invites policy makers to tailor interventions, e.g. assisting less mobile households with many dependents, or endowing households engaging in agriculture –an important source of income and driver of mobility – with appropriated skills and tools. Furthermore, it is shown that public transfers have only little impact on income mobility, indicating that their effectiveness has to be improved if the state wants to assist households in mitigating shocks and reducing inequality. Cette étude analyse la mobilité des revenus au Viet Nam entre 2004 et 2008. Le concept de mobilité des revenus est important pour les économies développées et en développement, en particuliers pour celles, tel le Viet Nam, ayant fait l’expérience d’une croissance économique persistante ainsi que de profondes transformations structurelles. La mobilité des revenus contribue aux connaissances en termes de pauvreté et d’inégalités en permettant la quantification du bénéfice tiré par les ménages de la performance économique de leur pays. L’analyse montre une augmentation de la mobilité des revenus due à la croissance au Viet Nam. L’analyse des facteurs déterminants conclue sur un besoin d’ajustement des politiques afin d’assister les ménages moins mobiles avec de nombreux dépendants, ainsi que le besoin d’assister les ménages dépendants de l’agriculture – un facteur important de revenu et de mobilité – avec les outils et connaissances nécessaires. En outre, les transferts publics n’ont que peu d’impact sur la mobilité des revenus, et requièrent une amélioration de leur efficacité pour assister les ménages dans l’atténuation de chocs et afin de réduire les inégalités.

Suggested Citation

  • Ian Brand-Weiner & Francesca Francavilla, 2015. "Income mobility in times of economic growth: The case of Viet Nam," OECD Development Centre Working Papers 328, OECD Publishing.
    • Handle: RePEc:oec:devaaa:328-en
    DOI: 10.1787/5jrp0hz8thjl-en
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    References listed on IDEAS

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    1. Ian Brand-Weiner & Francesca Francavilla & Mattia Olivari, 2015. "Globalisation in Viet Nam: An Opportunity for Social Mobility?," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 2(1), pages 21-33, January.
    2. Huu Chi Nguyen & Christophe J. Nordman & Fran�ois Roubaud, 2013. "Who Suffers the Penalty?: A Panel Data Analysis of Earnings Gaps in Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 49(12), pages 1694-1710, December.
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    More about this item

    Keywords

    income distribution; income growth;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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