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Determinants of Rural-Urban Inequality in Vietnam: Detailed Decomposition Analyses Based on Unconditional Quantile Regressions

Author

Listed:
  • Thanh P. Bui
  • Katsushi S. Imai

Abstract

This study examines determinants of the rural-urban gap of household welfare in Vietnam during 2008–2012 using national household data. We have used unconditional quantile regressions (UQR) to carry out quantile decomposition analyses to identify underlying causes for the rural-urban disparity across the entire distribution. Our analyses have overcome the limitations of Oaxaca-Blinder decomposition, namely, (i) decomposition is made only at mean and (ii) a dependent variable has a linear and parametric relationship with covariates. For these purposes, we have carried out detailed decomposition analyses and the UQR decomposition (N) combined with the reweighting technique. Our results show that basic education is beneficial to the rural poor and ethnic minorities in improving their living standards. Remittances generally improve rural welfare, but do not reduce within or between-inequality. Public policy should ensure easier access to education for the rural poor and support the self-employed to raise and stabilise income.

Suggested Citation

  • Thanh P. Bui & Katsushi S. Imai, 2019. "Determinants of Rural-Urban Inequality in Vietnam: Detailed Decomposition Analyses Based on Unconditional Quantile Regressions," Journal of Development Studies, Taylor & Francis Journals, vol. 55(12), pages 2610-2625, December.
    • Handle: RePEc:taf:jdevst:v:55:y:2019:i:12:p:2610-2625
    DOI: 10.1080/00220388.2018.1536265
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    Cited by:

    1. Subir Bairagi & Ashok K. Mishra & Dat Q. Tran, 2022. "Disentangling gender‐differentiated impacts on food security and poverty: Empirical evidence from Vietnam," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(3), pages 493-511, April.
    2. Nguyen Tran Tuan & Gábor Hegedűs, 2022. "Urbanization and Post-Acquisition Livelihood in a Peri-Urban Context in Vietnam: A Geographical Comparison between Hanoi, Danang, and Vinh City," Land, MDPI, vol. 11(10), pages 1-17, October.
    3. Hai‐Anh H. Dang & Shatakshee Dhongde & Minh N. N. Do & Cuong Viet Nguyen & Obert Pimhidzai, 2025. "Rapid Economic Growth but Rising Poverty Segregation: Will Vietnam Meet the SDGs for Equitable Development?," Review of Development Economics, Wiley Blackwell, vol. 29(4), pages 2063-2075, November.
    4. Yi Jiang & Richard S.J. Tol, 2024. "Does green innovation crowd out other innovation of firms? - based on the extended CDM model and unconditional quantile regressions," Working Paper Series 0124, Department of Economics, University of Sussex Business School.
    5. Jonathan Haughton & Wendi Sun & Le Thi Thanh Loan, 2018. "Discrimination against Migrants in Urban Vietnam," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 24(3), pages 211-232, August.
    6. repec:osf:osfxxx:zxyf8_v1 is not listed on IDEAS
    7. Romuald Foueka, 2020. "Analyse du différentiel de performances scolaires dans les pays PASEC sur la base de la régression quantile contrefactuelle," African Development Review, African Development Bank, vol. 32(4), pages 605-618, December.
    8. Trinh, Tra Thi & Munro, Alistair, 2023. "Integrating a choice experiment into an agent-based model to simulate climate-change induced migration: The case of the Mekong River Delta, Vietnam," Journal of choice modelling, Elsevier, vol. 48(C).
    9. Hien, Nguyen Thi Thu, 2019. "Consequences of urban migration of adult children for the elderly left-behind in rural Vietnam," OSF Preprints zxyf8, Center for Open Science.
    10. Francis Andrianarison, 2023. "Human capital, infrastructure, and institutional quality: leapfrogging the spatial poverty gap," SN Business & Economics, Springer, vol. 3(9), pages 1-26, September.
    11. Linh Thuy Nguyen & Christopher Gan & Baiding Hu, 2021. "Why is Ethnic Minority Poverty Severe? The Case of Rural Vietnam," Asian Development Policy Review, Asian Economic and Social Society, vol. 9(3), pages 161-179.
    12. Gasparin, Marta & Green, William & Lilley, Simon & Quinn, Martin & Saren, Mike & Schinckus, Christophe, 2021. "Business as unusual: A business model for social innovation," Journal of Business Research, Elsevier, vol. 125(C), pages 698-709.

    More about this item

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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