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Testing Proxy Means Tests in the Field: Evidence from Vietnam

Author

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  • Nguyen, Cuong
  • Lo, Duc

Abstract

During 2005-2015, the poor households in Vietnam were identified by Ministry of Labor, Invalid and Social Affairs (MOLISA) using an approach that combined proxy means tests (PMT) and quick collection of income data. A set of indicators were used to identify the surely poor and surely non-poor households. Then, income data were collected using simple questionnaires for the remaining households to identify the poor households. However, measuring income using simple questionnaires can result in a large measurement error. In attempt to improve the poverty targeting, with the technical supports from the World Bank and General Statistics Office of Vietnam, MOLISA has improved the PMT method and used it to identify the poor households since 2015. Income data are no longer collected. This report documents the current poverty identification approach, and the process of movement from the income-PMT approach to the PMT approach in Vietnam.

Suggested Citation

  • Nguyen, Cuong & Lo, Duc, 2016. "Testing Proxy Means Tests in the Field: Evidence from Vietnam," MPRA Paper 80002, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:80002
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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