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Economic mobility in Vietnam in the 1990s

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  • Glewwe, Paul
  • Phong Nguyen

Abstract

Vietnam's high economic growth in the 1990s led to sharp reductions in poverty, yet over the same time period inequality increased. This increased inequality may be less worrisome if Vietnamese households experience a high degree of income mobility over time. This is because high mobility implies that the long-run distribution of income is more equally distributed than the short-run distribution, since some individuals or households are poor in some years, while others are poor in other years. The authors examine economic mobility in Vietnam using recent household survey panel data. The problem of measurement error in the income variable, which exaggerates the degree of economic mobility, is directly addressed. Correcting for measurement error dramatically changes the results. At least one half of measured mobility is because of measurement error.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2838.

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Date of creation: 31 May 2002
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Handle: RePEc:wbk:wbrwps:2838

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Keywords: Statistical&Mathematical Sciences; Roads&Highways; Economic Theory&Research; Housing&Human Habitats; Environmental Economics&Policies; Economic Theory&Research; Housing&Human Habitats; Statistical&Mathematical Sciences; Inequality; Governance Indicators;

References

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  1. Peter Gottschalk, 1997. "Inequality, Income Growth, and Mobility: The Basic Facts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 21-40, Spring.
  2. Esfandiar Maasoumi & Mark Trede, 2001. "Comparing Income Mobility In Germany And The United States Using Generalized Entropy Mobility Measures," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 551-559, August.
  3. Fields, Gary S & Ok, Efe A, 1999. "Measuring Movement of Incomes," Economica, London School of Economics and Political Science, vol. 66(264), pages 455-71, November.
  4. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
  5. Margaret Grosh & Paul Glewwe, 2000. "Designing Household Survey Questionnaires for Developing Countries : Lessons from 15 Years of the Living Standards Measurement Study, Volume 3," World Bank Publications, The World Bank, number 15195, October.
  6. Margaret E. Grosh & Paul Glewwe, 1998. "Data Watch: The World Bank's Living Standards Measurement Study Household Surveys," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 187-196, Winter.
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Cited by:
  1. Klaus Deininger & Songqing Jin, 2008. "Land Sales and Rental Markets in Transition: Evidence from Rural Vietnam," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(1), pages 67-101, 02.

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