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Poverty, inequality and ethnic minorities in Vietnam

Author

Listed:
  • Katsushi Imai
  • Raghav Gaiha
  • Woojin Kang

Abstract

The present study examines how and why ethnic minorities are poorer than ethnic majorities in Vietnam using the Vietnam Household Living Standards Survey data for 2002 and 2004. First, the analysis confirms that households belonging to the ethnic minority groups are not only poorer but also more vulnerable to various shocks than those in the ethnic majority groups, namely the Kinh and the Chinese. Second, household composition (e.g., dependency burden), education, land holding and location are important determinants of expenditure and poverty, whilst there is some diversity among different ethnic groups. Finally, the decomposition analyses reveal that the ethnic minorities are poorer not necessarily because they have more disadvantaged household characteristics (e.g., educational attainment or location), but, more importantly, because the returns to the characteristics are much lower for ethnic minorities than for the majorities. Government policies to reduce structural differences between ethnic majorities and minorities are imperative to address the disparities in returns to endowments between them.

Suggested Citation

  • Katsushi Imai & Raghav Gaiha & Woojin Kang, 2011. "Poverty, inequality and ethnic minorities in Vietnam," International Review of Applied Economics, Taylor & Francis Journals, vol. 25(3), pages 249-282.
  • Handle: RePEc:taf:irapec:v:25:y:2011:i:3:p:249-282
    DOI: 10.1080/02692171.2010.483471
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    References listed on IDEAS

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    1. World Bank, 2004. "Vietnam Development Report 2005 : Governance," World Bank Other Operational Studies 15650, The World Bank.
    2. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    3. Adam Fforde, 2005. "Persuasion: Reflections on economics, data, and the 'homogeneity assumption'," Journal of Economic Methodology, Taylor & Francis Journals, vol. 12(1), pages 63-91.
    4. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    5. Ira N. Gang & Kunal Sen & Myeong-Su Yun, 2006. "Poverty in Rural India: Ethnicity and Caste," Departmental Working Papers 200634, Rutgers University, Department of Economics.
    6. Yun, Myeong-Su, 2004. "Decomposing differences in the first moment," Economics Letters, Elsevier, vol. 82(2), pages 275-280, February.
    7. van de Walle, Dominique & Gunewardena, Dileni, 2001. "Sources of ethnic inequality in Viet Nam," Journal of Development Economics, Elsevier, vol. 65(1), pages 177-207, June.
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    Citations

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    Cited by:

    1. Thanh Bui & Katsushi S. Imai, 2017. "Determinants of Rural-urban Inequality in Vietnam: Detailed Decomposition Analyses Based on Unconditional Quantile Regressions," Discussion Paper Series DP2017-01, Research Institute for Economics & Business Administration, Kobe University, revised Apr 2018.
    2. Quang Tran, Tuyen & Hong Nguyen, Son & Van Vu, Huong & Quoc Nguyen, Viet, 2014. "Determinants of poverty among ethnic minorities in the Northwest region, Vietnam," MPRA Paper 59144, University Library of Munich, Germany, revised 01 Oct 2014.
    3. Arouri, Mohamed & Nguyen, Cuong & Youssef, Adel Ben, 2015. "Natural Disasters, Household Welfare, and Resilience: Evidence from Rural Vietnam," World Development, Elsevier, vol. 70(C), pages 59-77.
    4. Bui, Tuan & Nguyen, Cuong & Pham, Phuong, 2015. "Poverty among ethnic minorities: transition process, inequality and economic growth," MPRA Paper 68924, University Library of Munich, Germany.
    5. repec:spr:soinre:v:134:y:2017:i:1:d:10.1007_s11205-016-1413-3 is not listed on IDEAS
    6. Carlos Gradín, 2016. "Poverty and ethnicity in Asian countries," Chapters,in: The Asian ‘Poverty Miracle’, chapter 8, pages 253-320 Edward Elgar Publishing.
    7. Kang, Woojin & Imai, Katsushi S., 2012. "Pro-poor growth, poverty and inequality in rural Vietnam," Journal of Asian Economics, Elsevier, vol. 23(5), pages 527-539.
    8. Hardeweg, Bernd & Wagener, Andreas & Waibel, Hermann, 2013. "A distributional approach to comparing vulnerability, applied to rural provinces in Thailand and Vietnam," Journal of Asian Economics, Elsevier, vol. 25(C), pages 53-65.
    9. Damir Esenaliev & Susan Steiner, 2012. "Are Uzbeks Better off than Kyrgyz?: Measuring and Decomposing Horizontal Inequality," Discussion Papers of DIW Berlin 1252, DIW Berlin, German Institute for Economic Research.
    10. Tran Quang, Tuyen, 2014. "Determinants of nonfarm participation among ethnic minorities in the Northwest Mountains, Vietnam," MPRA Paper 59158, University Library of Munich, Germany, revised 08 Oct 2014.

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