Inequality among the rural poor: A tale of two cities in India and Vietnam
Using the Survey of Living Conditions in Uttar Pradesh and Bihar of India and the second round of the Vietnam Living Standards Survey, this paper examines whether and to what extent rural consumption inequality of the poor differs in the two countries. While these two countries have experienced significant growth since the early 1990s, they have different institutional arrangements. As a result, the reforms that they have undertaken could have different impact on the poor. The Shapley decomposition results suggest that not only is average consumption expenditure per capita higher in rural Vietnam than in rural India, but also the distribution is more equitable. Land ownership and education structure are found to be the most important contributing factors of consumption inequality for the rural poor. However, the importance of these contributing factors differs. Land ownership (age structure) turns out to be the most important factor for India (Vietnam). Education is an important factor common to the poor in both countries. Policies to ensure more equal access to land and education hold the key to address consumption inequality for the poor.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +61 2 6125 4705
Fax: +61 2 6125 5448
Web page: https://crawford.anu.edu.au/research/papers/Email:
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
- Barry Bosworth & Susan M. Collins, 2008.
"Accounting for Growth: Comparing China and India,"
Journal of Economic Perspectives,
American Economic Association, vol. 22(1), pages 45-66, Winter.
- Jonathan Morduch & Terry Sicular, 1998.
"Rethinking Inequality Decomposition, with Evidence from Rural China,"
Harvard Institute of Economic Research Working Papers
1831, Harvard - Institute of Economic Research.
- Jonathan Morduch & Terry Sicular, 2002. "Rethinking Inequality Decomposition, With Evidence from Rural China," Economic Journal, Royal Economic Society, vol. 112(476), pages 93-106, January.
- Borooah, Vani K. & Gustafsson, Bjorn & Li, Shi, 2006. "China and India: Income inequality and poverty north and south of the Himalayas," Journal of Asian Economics, Elsevier, vol. 17(5), pages 797-817, November.
- Minot, Nicholas & Baulch, Bob, 2002.
"The spatial distribution of poverty in Vietnam and the potential for targeting,"
MSSD discussion papers
42, International Food Policy Research Institute (IFPRI).
- Minot, Nicholas & Baulch, Bob, 2002. "The spatial distribution of poverty in Vietnam and the potential for targeting," MTID discussion papers 42, International Food Policy Research Institute (IFPRI).
- Minot, Nicholas & Baulch, Bob, 2002. "The spatial distribution of poverty in Vietnam and the potential for targeting," Policy Research Working Paper Series 2829, The World Bank.
- Wan, Guanghua, 2004. "Accounting for income inequality in rural China: a regression-based approach," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 348-363, June.
- Martin Ravallion & Dominique van de Walle, 2006. "Land Reallocation in an Agrarian Transition," Economic Journal, Royal Economic Society, vol. 116(514), pages 924-942, October.
- 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.
- Kolenikov, Stanislav & Shorrocks, Anthony, 2003.
"A Decomposition Analysis of Regional Poverty in Russia,"
Working Paper Series
UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Stanislav Kolenikov & Anthony Shorrocks, 2005. "A Decomposition Analysis of Regional Poverty in Russia," Review of Development Economics, Wiley Blackwell, vol. 9(1), pages 25-46, 02.
- Subramanian, S. & Jayaraj, D., 2006. "The Distribution of Household Wealth in India," Working Paper Series RP2006/116, World Institute for Development Economic Research (UNU-WIDER).
- Vani K. Borooah, 2005. "Caste, Inequality, and Poverty in India," Review of Development Economics, Wiley Blackwell, vol. 9(3), pages 399-414, 08.
When requesting a correction, please mention this item's handle: RePEc:idc:wpaper:idec09-04. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tom Kompas)
If references are entirely missing, you can add them using this form.