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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 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.

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File URL: http://www.socialsciences.manchester.ac.uk/medialibrary/economics/discussionpapers/EDP-0719.pdf
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Paper provided by Economics, The University of Manchester in its series The School of Economics Discussion Paper Series with number 0719.

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Date of creation: 2007
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Handle: RePEc:man:sespap:0719
Contact details of provider: Postal: Manchester M13 9PL
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Web page: http://www.socialsciences.manchester.ac.uk/subjects/economics/

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  1. Ronald Oaxaca, 1971. "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section..
  2. 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.
  3. Adam Fforde, 2004. "Persuasion: Reflections on Economics, Data and the 'Homogeneity Assumption'," Department of Economics - Working Papers Series 919, The University of Melbourne.
  4. Yun, Myeong-Su, 2003. "Decomposing Differences in the First Moment," IZA Discussion Papers 877, Institute for the Study of Labor (IZA).
  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. Gunewardena, Dileni & Van de Walle, Dominique, 2000. "Sources of ethnic inequality in Vietnam," Policy Research Working Paper Series 2297, The World Bank.
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