Sources of Regional Income Disparity in Rural Vietnam: Oaxaca-Blinder Decomposition

Kazushi Takahashi

No 95, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: This paper investigates determinants of regional income disparity in rural Vietnam, with special emphasis placed on the roles of human capital and land. We apply a decomposition method, suggested by Oaxaca and Blinder. We found that returns to assets rather than endowments, especially those of human capital, are one of the leading factors to account for income differences across regions. We also found that substantial improvements of returns to human capital in the Red River delta region are a driving force to catch up with Mekong River delta region. Unexpectedly, differences in land endowment do not strongly correlate with regional income disparity because better access to land in a region was partially offset by lower returns.

Keywords: Income inequality; Human capital; Land; Vietnam; Income distribution; Human resources; 所得不平等; 人的資本; 土地; ベトナム; 所得分配; 人的資源 (search for similar items in EconPapers)
JEL-codes: D31 I32 O12 (search for similar items in EconPapers)
Date: 2007-03-01
New Economics Papers: this item is included in nep-agr, nep-dev, nep-geo, nep-hrm and nep-sea
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Citations: View citations in EconPapers (6)

Published in IDE Discussion Paper = IDE Discussion Paper, No. 95. 2007-03-01

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