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Rural–Urban Migration, Household Vulnerability, and Welfare in Vietnam

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  • Nguyen, Loc Duc
  • Raabe, Katharina
  • Grote, Ulrike

Abstract

This paper investigates the interaction of migration, vulnerability to poverty, and welfare of rural households in three provinces in Central Vietnam. It addresses three questions. (1) To what extent do shocks motivate rural household members to move to urban areas?, (2) Are migrants in the new urban settings better off in terms of working conditions and quality of life?, and (3) What is the effect of migration on rural household’s welfare and vulnerability to poverty? The analysis uses panel data of 2200 households from rural Vietnam covering the period 2007–2010, and a tracking survey of 299 migrants from 2010. The empirical evidence from a probit model shows that migration, especially migration for employment, is a livelihood support strategy for households exposed to agricultural and economic shocks. Migration for education is more likely observed among households with higher human capital and being financially better off. Nevertheless, the probability of migration decreases with the employment opportunity in the village. Migrants perceive themselves to be better off at the place of destination, but income losses from shocks of their rural households may reduce their employment quality. The results from difference-in-difference specifications with propensity score matching techniques suggest that migration has positive income growth effects, and that these effects are more pronounced in provinces with fewer job opportunities. These effects help not only migrant households moving out of poverty, but it also improves the poverty situation in rural areas.

Suggested Citation

  • Nguyen, Loc Duc & Raabe, Katharina & Grote, Ulrike, 2015. "Rural–Urban Migration, Household Vulnerability, and Welfare in Vietnam," World Development, Elsevier, vol. 71(C), pages 79-93.
  • Handle: RePEc:eee:wdevel:v:71:y:2015:i:c:p:79-93
    DOI: 10.1016/j.worlddev.2013.11.002
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    References listed on IDEAS

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    Cited by:

    1. Narciso Gaia, 2015. "Labour and migration in rural Vietnam," WIDER Working Paper Series 095, World Institute for Development Economic Research (UNU-WIDER).
    2. Ward, Patrick S., 2016. "Transient Poverty, Poverty Dynamics, and Vulnerability to Poverty: An Empirical Analysis Using a Balanced Panel from Rural China," World Development, Elsevier, vol. 78(C), pages 541-553.
    3. Nguyen, Trung Thanh & Do, Truong Lam & Bühler, Dorothee & Hartje, Rebecca & Grote, Ulrike, 2015. "Rural livelihoods and environmental resource dependence in Cambodia," Ecological Economics, Elsevier, vol. 120(C), pages 282-295.
    4. Nguyen, Thinh T. & Saito, Hisamitsu & Isoda, Hiroshi & Ito, Shoichi, 2015. "Balancing Skilled with Unskilled Migration in an Urbanizing Agricultural Economy," World Development, Elsevier, vol. 66(C), pages 457-467.
    5. Yi Ge & Haibo Zhang & Wen Dou & Wenfang Chen & Ning Liu & Yuan Wang & Yulin Shi & Wenxin Rao, 2017. "Mapping Social Vulnerability to Air Pollution: A Case Study of the Yangtze River Delta Region, China," Sustainability, MDPI, Open Access Journal, vol. 9(1), pages 1-15, January.
    6. repec:eee:forpol:v:90:y:2018:i:c:p:128-141 is not listed on IDEAS
    7. Coxhead, Ian & Vu, Linh & Nguyen, Cuong, 2016. "Migration in Vietnam: New Evidence from Recent Surveys," MPRA Paper 70217, University Library of Munich, Germany.
    8. Azeem, Muhammad Masood & Mugera, Amin W. & Schilizzi, Steven, 2016. "Poverty and vulnerability in the Punjab, Pakistan: A multilevel analysis," Journal of Asian Economics, Elsevier, vol. 44(C), pages 57-72.
    9. Koubi, Vally & Spilker, Gabriele & Schaffer, Lena & Bernauer, Thomas, 2016. "Environmental Stressors and Migration: Evidence from Vietnam," World Development, Elsevier, vol. 79(C), pages 197-210.
    10. repec:spr:izamig:v:7:y:2017:i:1:d:10.1186_s40176-017-0089-z is not listed on IDEAS
    11. Phan, Diep & Coxhead, Ian, 2016. "Rural-Urban Migration and Remittances in Vietnam Evidence from Migrant Tracer Data," Staff Paper Series 581, University of Wisconsin, Agricultural and Applied Economics.

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