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Farmland loss, nonfarm diversification and inequality: A micro-econometric analysis of household surveys in Vietnam

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  • Tran, Tuyen
  • Vu, Huong

Abstract

The relationship between farmland loss, nonfarm diversification and inequality has been well-documented in the literature. However, no study has quantified this relationship. Using a dataset from a 2010 field survey involving 477 households, this study has contributed to the literature by providing the first econometricevidence about the impacts of farmland loss (due to urbanization and industrialization) onnonfarm diversification and income quality among households in Hanoi's peri-urban areas. Our results show that under the impact of farmland loss, households have actually diversified their income through various nonfarm activities,notably in informal wage work. In addition, while farmland loss has reduced the share of farm income, resulting in an increase in income inequality,it has also increased the share of informal wage income, leading to a decrease in income inequality

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 47596.

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Date of creation: 14 Jun 2013
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Handle: RePEc:pra:mprapa:47596

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Keywords: Farmland acquisition; formal wage income; fractional multinomial logit and Gini decomposition;

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