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Poverty, Inequality and Ethnic Minorities in Vietnam

  • Katsushi Imai
  • Raghav Gaiha

The present study examines how and why ethnic minorities are poorer than ethnic majorities in Vietnam using the VHLSS 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 majorities. Government policies to reduce structural differences between ethnic majorities and minorities are imperative to address the disparities in returns to endowments between them.

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File URL: http://www.bwpi.manchester.ac.uk/medialibrary/publications/working_papers/bwpi-wp-1007.pdf
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Paper provided by BWPI, The University of Manchester in its series Brooks World Poverty Institute Working Paper Series with number 1007.

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Date of creation: 2007
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Handle: RePEc:bwp:bwppap:1007
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  1. 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.
  2. Yun, Myeong-Su, 2004. "Decomposing differences in the first moment," Economics Letters, Elsevier, vol. 82(2), pages 275-280, February.
  3. Ronald Oaxaca, 1971. "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section..
  4. 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.
  5. 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.
  6. 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.
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