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Changes in urban inequality in Vietnam: 1992-1998

  • Liu, Amy Y.C.
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    The urban inequality in Vietnam has declined in the 1990s. Using the regression-based decomposition methods [Fields, G.S., 2003. Accounting for income inequality and its change: a new method, with application to the distribution of earnings in the United States. In: Polachek, S.W. (Ed.), Worker Well Being and Public Policy, Research in Labor Economics, vol. 22. Elsevier, New Jersey, pp. 1-38; Yun, M.S., 2006. Earnings inequality in U.S., 1969-99: comparing inequality using earnings equations. Review of Income and Wealth 52, 127-144.], we identify the contributing factors and distinguish between changes of the inequality due to changing returns to characteristics and distribution of these characteristics. We find that the changing returns to regional factors and to physical assets are behind the decline in urban inequality. However, the decline hides adverse changes from human capital and unemployment. Policies to encourage regional labor market integration, improve the quality of and equal access to education are important to make the equal urban distribution sustainable in the new millennium.

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    Article provided by Elsevier in its journal Economic Systems.

    Volume (Year): 32 (2008)
    Issue (Month): 4 (December)
    Pages: 410-425

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    Handle: RePEc:eee:ecosys:v:32:y:2008:i:4:p:410-425
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    1. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
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    7. Xin Meng, 2004. "Economic Restructuring and Income Inequality in Urban China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 50(3), pages 357-379, 09.
    8. Cowell, Frank A & Jenkins, Stephen P, 1995. "How Much Inequality Can We Explain? A Methodology and an Application to the United States," Economic Journal, Royal Economic Society, vol. 105(429), pages 421-30, March.
    9. W. Neil Adger, 1999. "Exploring income inequality in rural, coastal Viet Nam," Journal of Development Studies, Taylor & Francis Journals, vol. 35(5), pages 96-119.
    10. Nguyen, Binh T. & Albrecht, James W. & Vroman, Susan B. & Westbrook, M. Daniel, 2007. "A quantile regression decomposition of urban-rural inequality in Vietnam," Journal of Development Economics, Elsevier, vol. 83(2), pages 466-490, July.
    11. Glewwe, Paul & Patrinos, Harry Anthony, 1999. "The Role of the Private Sector in Education in Vietnam: Evidence From the Vietnam Living Standards Survey," World Development, Elsevier, vol. 27(5), pages 887-902, May.
    12. Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January.
    13. Khan, Azizur Rahman & Riskin, Carl, 2001. "Inequality and Poverty in China in the Age of Globalization," OUP Catalogue, Oxford University Press, number 9780195136494, March.
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