IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/75357.html
   My bibliography  Save this paper

Intergenerational mobility of earnings and income among sons and daughters in Vietnam

Author

Listed:
  • Dang, Thang

Abstract

This paper empirically examines intergenerational economic mobility in Vietnam. The two-sample two-stage least squares estimation is employed to achieve the research objective using two primary samples of father-son pairs and father-daughter pairs from Vietnam Household Living Standards Survey of 2012, and one secondary sample from Vietnam Living Standards Survey of 1997-1998. The baseline intergenerational elasticity estimates show that Vietnam occupies the intermediate degrees of intergenerational mobility of earnings and income for both sons and daughters. In particular, a rise of 10% in fathers’ individual earnings is on average associated with an increase of 3.61% and 3.94% for sons’ individual earnings and individual income, respectively. The corresponding figures for daughters’ individual earnings and individual income are 2.84% and 3.33%, respectively. This paper also provides evidence on the average degree of inequality of opportunity in Vietnam during its transition from a central planning economy to a market-oriented system.

Suggested Citation

  • Dang, Thang, 2015. "Intergenerational mobility of earnings and income among sons and daughters in Vietnam," MPRA Paper 75357, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:75357
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/75357/1/MPRA_paper_75357.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. World Bank, 2014. "Taking Stock, December 2014," World Bank Publications - Reports 21110, The World Bank Group.
    2. Nicoletti Cheti & Ermisch John F, 2008. "Intergenerational Earnings Mobility: Changes across Cohorts in Britain," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(2), pages 1-38, January.
    3. Miles Corak, 2013. "Income Inequality, Equality of Opportunity, and Intergenerational Mobility," Journal of Economic Perspectives, American Economic Association, vol. 27(3), pages 79-102, Summer.
    4. Miles Corak & Andrew Heisz, 1999. "The Intergenerational Earnings and Income Mobility of Canadian Men: Evidence from Longitudinal Income Tax Data," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 504-533.
    5. Kan Kamhon & Li I-Hsin & Wang Ruei-Hua, 2015. "Intergenerational Income Mobility in Taiwan: Evidence from TS2SLS and Structural Quantile Regression," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(1), pages 257-284, January.
    6. Honge Gong & Andrew Leigh & Xin Meng, 2012. "Intergenerational Income Mobility In Urban China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 58(3), pages 481-503, September.
    7. Miles Corak, 2006. "Do Poor Children Become Poor Adults? Lessons from a Cross-Country Comparison of Generational Earnings Mobility," Research on Economic Inequality, in: Dynamics of Inequality and Poverty, pages 143-188, Emerald Group Publishing Limited.
    8. Abdurrahman Aydemir & Wen-Hao Chen & Miles Corak, 2009. "Intergenerational Earnings Mobility among the Children of Canadian Immigrants," The Review of Economics and Statistics, MIT Press, vol. 91(2), pages 377-397, May.
    9. Hertz Tom & Jayasundera Tamara & Piraino Patrizio & Selcuk Sibel & Smith Nicole & Verashchagina Alina, 2008. "The Inheritance of Educational Inequality: International Comparisons and Fifty-Year Trends," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(2), pages 1-48, January.
    10. M. Niaz Asadullah, 2012. "Intergenerational Wealth Mobility in Rural Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 48(9), pages 1193-1208, September.
    11. Chris Sakellariou & Zheng Fang, 2014. "The Vietnam reforms, change in wage inequality and the role of the minimum wage," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(2), pages 313-340, April.
    12. Gary Solon, 2002. "Cross-Country Differences in Intergenerational Earnings Mobility," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 59-66, Summer.
    13. Clément Imbert, 2013. "Decomposing the Labor Market Earnings Inequality: The Public and Private Sectors in Vietnam, 1993–2006," The World Bank Economic Review, World Bank, vol. 27(1), pages 55-79.
    14. 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.
    15. A. B. Atkinson, 1981. "On Intergenerational Income Mobility in Britain," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 3(2), pages 194-218, January.
    16. Piraino, Patrizio, 2015. "Intergenerational Earnings Mobility and Equality of Opportunity in South Africa," World Development, Elsevier, vol. 67(C), pages 396-405.
    17. Ng Irene, 2007. "Intergenerational Income Mobility in Singapore," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(2), pages 1-35, October.
    18. Ng, Irene Y.H. & Shen, Xiaoyi & Ho, Kong Weng, 2009. "Intergenerational earnings mobility in Singapore and the United States," Journal of Asian Economics, Elsevier, vol. 20(2), pages 110-119, March.
    19. Piraino Patrizio, 2007. "Comparable Estimates of Intergenerational Income Mobility in Italy," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(2), pages 1-27, October.
    20. repec:adr:anecst:y:2005:i:78:p:03 is not listed on IDEAS
    21. Binder, Melissa & Woodruff, Christopher, 2002. "Inequality and Intergenerational Mobility in Schooling: The Case of Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 50(2), pages 249-267, January.
    22. Arnaud Lefranc & Alain Trannoy, 2005. "Intergenerational earnings mobility in France: Is France more mobile than the U.S.?," Annals of Economics and Statistics, GENES, issue 78, pages 57-77.
    23. Raj Chetty & Nathaniel Hendren & Patrick Kline & Emmanuel Saez & Nicholas Turner, 2014. "Is the United States Still a Land of Opportunity? Recent Trends in Intergenerational Mobility," American Economic Review, American Economic Association, vol. 104(5), pages 141-147, May.
    24. Blanden, Jo, 2013. "Cross-national rankings of intergenerational mobility: a comparison of approaches from economics and sociology," LSE Research Online Documents on Economics 59310, London School of Economics and Political Science, LSE Library.
    25. World Bank, 2014. "Taking Stock, July 2014," World Bank Publications - Reports 19987, The World Bank Group.
    26. Arnaud Lefranc & Fumiaki Ojima & Takashi Yoshida, 2014. "Intergenerational earnings mobility in Japan among sons and daughters: levels and trends," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(1), pages 91-134, January.
    27. repec:hal:pseose:hal-00813041 is not listed on IDEAS
    28. Bauer, Philipp C. & Riphahn, Regina T., 2009. "Age at school entry and intergenerational educational mobility," Economics Letters, Elsevier, vol. 103(2), pages 87-90, May.
    29. Björn Gustafsson, 1994. "The Degree And Pattern Of Income Immobility In Sweden," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 40(1), pages 67-86, March.
    30. Bhashkar Mazumder, 2005. "Fortunate Sons: New Estimates of Intergenerational Mobility in the United States Using Social Security Earnings Data," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 235-255, May.
    31. Amy Y. C. Liu, 2006. "Changing wage structure and education in Vietnam, 1992–98," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 14(4), pages 681-706, October.
    32. Nunez Javier I & Miranda Leslie, 2010. "Intergenerational Income Mobility in a Less-Developed, High-Inequality Context: The Case of Chile," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-17, April.
    33. M. Shahe Emran & Forhad Shilpi, 2011. "Intergenerational Occupational Mobility in Rural Economy: Evidence from Nepal and Vietnam," Journal of Human Resources, University of Wisconsin Press, vol. 46(2), pages 427-458.
    34. Lee, Yong Suk, 2014. "Exams, districts, and intergenerational mobility: Evidence from South Korea," Labour Economics, Elsevier, vol. 29(C), pages 62-71.
    35. Jo Blanden, 2013. "Cross-Country Rankings In Intergenerational Mobility: A Comparison Of Approaches From Economics And Sociology," Journal of Economic Surveys, Wiley Blackwell, vol. 27(1), pages 38-73, February.
    36. Bjorklund, Anders & Chadwick, Laura, 2003. "Intergenerational income mobility in permanent and separated families," Economics Letters, Elsevier, vol. 80(2), pages 239-246, August.
    37. Nguyen, Binh T. & Albrecht, James W. & Vroman, Susan B. & Westbrook, M. Daniel, 2007. "A quantile regression decomposition of urban-rural inequality in Vietnam," Journal of Development Economics, Elsevier, vol. 83(2), pages 466-490, July.
    38. Lalaina H. Hirvonen, 2008. "Intergenerational Earnings Mobility Among Daughters and Sons: Evidence from Sweden and a Comparison with the United States," American Journal of Economics and Sociology, Wiley Blackwell, vol. 67(5), pages 777-826, November.
    39. Øivind Anti Nilsen & Kjell Vaage & Arild Aakvik & Karl Jacobsen, 2012. "Intergenerational Earnings Mobility Revisited: Estimates Based on Lifetime Earnings," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(1), pages 1-23, March.
    40. Mocetti Sauro, 2007. "Intergenerational Earnings Mobility in Italy," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(2), pages 1-25, December.
    41. Fengye Sun & Atsuko Ueda, 2015. "Intergenerational earnings mobility in Taiwan," Economics Bulletin, AccessEcon, vol. 35(1), pages 187-197.
    42. Espen Bratberg & Øivind Anti Nilsen & Kjell Vaage, 2005. "Intergenerational Earnings Mobility in Norway: Levels and Trends," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(3), pages 419-435, September.
    43. Zimmerman, David J, 1992. "Regression toward Mediocrity in Economic Stature," American Economic Review, American Economic Association, vol. 82(3), pages 409-429, June.
    44. Debopam Bhattacharya & Bhashkar Mazumder, 2011. "A nonparametric analysis of black–white differences in intergenerational income mobility in the United States," Quantitative Economics, Econometric Society, vol. 2(3), pages 335-379, November.
    45. W. Neil Adger, 1999. "Exploring income inequality in rural, coastal Viet Nam," Journal of Development Studies, Taylor & Francis Journals, vol. 35(5), pages 96-119.
    46. Dunn Christopher E, 2007. "The Intergenerational Transmission of Lifetime Earnings: Evidence from Brazil," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(2), pages 1-42, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dang, Thang, 2017. "The Multiple Effects of Child Health Insurance in Vietnam," MPRA Paper 78614, University Library of Munich, Germany.
    2. Driouchi, Ahmed & Gamar, Alae, 2016. "The Gap between Educational & Social Intergenerational Mobility in Arab Countries," MPRA Paper 73998, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Doan, Quang Hung & Nguyen, Ngoc Anh, 2016. "Intergenerational Income Mobility in Vietnam," MPRA Paper 70603, University Library of Munich, Germany.
    2. Markus Jäntti & Stephen P. Jenkins, 2013. "Income Mobility," SOEPpapers on Multidisciplinary Panel Data Research 607, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Amaral, Ernesto F. L. & Yen, Shih-Keng & Wang, Sharron Xuanren, 2019. "A meta-analysis of the association between income inequality and intergenerational mobility," OSF Preprints 8qmhw, Center for Open Science.
    4. Fengye Sun & Atsuko Ueda, 2015. "Intergenerational earnings mobility in Taiwan," Economics Bulletin, AccessEcon, vol. 35(1), pages 187-197.
    5. Quheng Deng & Björn Gustafsson & Shi Li, 2013. "Intergenerational Income Persistence in Urban China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(3), pages 416-436, September.
    6. Blanden, Jo, 2009. "How much can we learn from international comparisons of intergenerational mobility?," LSE Research Online Documents on Economics 28283, London School of Economics and Political Science, LSE Library.
    7. Yu-Wei Luke Chu & Ming-Jen Lin, 2020. "Intergenerational earnings mobility in Taiwan: 1990–2010," Empirical Economics, Springer, vol. 59(1), pages 11-45, July.
    8. Blanden, Jo, 2013. "Cross-national rankings of intergenerational mobility: a comparison of approaches from economics and sociology," LSE Research Online Documents on Economics 59310, London School of Economics and Political Science, LSE Library.
    9. John Jerrim & Álvaro Choi & Rosa Simancas Rodríguez, 2014. "Two-sample two-stage least squares (TSTSLS) estimates of earnings mobility: how consistent are they?," Working Papers 2014/35, Institut d'Economia de Barcelona (IEB).
    10. Piraino, Patrizio, 2015. "Intergenerational Earnings Mobility and Equality of Opportunity in South Africa," World Development, Elsevier, vol. 67(C), pages 396-405.
    11. Chu, Luke Yu-Wei & Lin, Ming-Jen, 2016. "Economic development and intergenerational earnings mobility: Evidence from Taiwan," Working Paper Series 19495, Victoria University of Wellington, School of Economics and Finance.
    12. Chu, Luke Yu-Wei & Lin, Ming-Jen, 2016. "Economic development and intergenerational earnings mobility: Evidence from Taiwan," Working Paper Series 5272, Victoria University of Wellington, School of Economics and Finance.
    13. Francesco Bloise & Michele Raitano, 2019. "Intergenerational earnings elasticity of actual father-son pairs in Italy accounting for lifecycle and attenuation bias," Working Papers 504, ECINEQ, Society for the Study of Economic Inequality.
    14. Florencia Torche, 2015. "Analyses of Intergenerational Mobility," The ANNALS of the American Academy of Political and Social Science, , vol. 657(1), pages 37-62, January.
    15. Sajid Amin Javed & Mohammad Irfan, 2014. "Intergenerational Mobility: Evidence from Pakistan Panel Household Survey," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 53(2), pages 175-203.
    16. Francesco Bloise & Michele Raitano, 2021. "Intergenerational Earnings Persistence in Italy between Actual Father–Son Pairs Accounting for Lifecycle and Attenuation Bias," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(1), pages 88-114, February.
    17. Maribel Jiménez, 2011. "Un Análisis Empírico de las No Linealidades en la Movilidad Intergeneracional del Ingreso. El caso de la Argentina," CEDLAS, Working Papers 0114, CEDLAS, Universidad Nacional de La Plata.
    18. Anna Christina D'Addio, 2007. "Intergenerational Transmission of Disadvantage: Mobility or Immobility Across Generations?," OECD Social, Employment and Migration Working Papers 52, OECD Publishing.
    19. Chenhong Peng & Paul Siu Fai Yip & Yik Wa Law, 2019. "Intergenerational Earnings Mobility and Returns to Education in Hong Kong: A Developed Society with High Economic Inequality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(1), pages 133-156, May.
    20. Nizam MelikÅŸah Demirtas & Orhan Torul, 2021. "Intergenerational Income Mobility in Turkey Abstract:," Working Papers 2021/05, Bogazici University, Department of Economics.

    More about this item

    Keywords

    Intergenerational mobility; Intergenerational elasticity; Two-sample two-stage least squares; Vietnam;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:75357. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.