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Education and the livelihood of households in the Northwest Region, Vietnam

Author

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  • Quang Tran, Tuyen
  • Anh Tran, Tai
  • The Tran, Nu
  • Thi Nguyen, Hai

Abstract

Using the updated data from the 2016 Vietnam Household Living Standard Survey, this study examines the role of education in the livelihood of households in the Northwest Region, the poorest region in Vietnam. Our micro-econometric analysis shows that education has a positive effect on choosing better livelihoods, on household income and poverty reduction, even after controlling for all other factors in the models. However, our quantile regression analysis reveals that the returns on education are substantially heterogeneous across percentiles of income distribution and tend to be higher for better-off households. This implies that education has an increasing effect on within-level income inequality. The finding suggests that a conventional approach employing only mean regression to study the effect of education on income could miss heterogeneity of interest to policymakers.

Suggested Citation

  • Quang Tran, Tuyen & Anh Tran, Tai & The Tran, Nu & Thi Nguyen, Hai, 2018. "Education and the livelihood of households in the Northwest Region, Vietnam," MPRA Paper 90414, University Library of Munich, Germany, revised 17 May 2018.
    • Handle: RePEc:pra:mprapa:90414
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    Cited by:

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    3. Van Hoang, Cuong & Quang Tran, Tuyen & Hai Thi Nguyen, Yen & Duc Nguyen, Kien, 2019. "Is landholding a potential barrier to adopting profitable livelihoods in the Mekong Delta region in Vietnam ?," MPRA Paper 95936, University Library of Munich, Germany, revised 10 Feb 2019.
    4. Hoang Van, Cuong Van & Tran Quang, Tuyen & Nguyen Thi, Yen & Lan Nguyen, Thanh, 2019. "A propensity score matching analysis of the relationship between forest resources and household welfare in Vietnam," MPRA Paper 100105, University Library of Munich, Germany, revised 28 Apr 2020.

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    More about this item

    Keywords

    education; heterogeneous; inequality; rural livelihoods; quantile regression;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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