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Contribution to income inequality by income source: A comparison across ethnic groups in Vietnam

Hien Nguyen, Tinh Doan and Tuyen Tran

MPRA Paper from University Library of Munich, Germany

Abstract: This study explores the dynamics of income and income inequality in Vietnam from 2004 to 2014. Two main sub-population groups are investigated: the ethnic majority, known as the Kinh people, and the minority group, which includes 53 minor ethnicities in Vietnam. The findings show that income gap among ethnic groups has increased over the last decade. The Gini index decomposition indicates that wages and nonfarm income are the two main determinants of income inequality. Cultivation and agricultural side-line incomes were relatively evenly distributed, despite their recent smaller equalizing effect. Both sub-population groups have experienced a decreasing contribution of the agricultural sector to overall household income. The changes in income inequality in Vietnam by income sources reflect the economic structure change of the economy from the agricultural reliance to non-agricultural economic activities.

Keywords: Income inequality; ethnicity; decomposition; Vietnam (search for similar items in EconPapers)
JEL-codes: D6 D63 I32 (search for similar items in EconPapers)
Date: 2017-12-15, Revised 2018-01-18
New Economics Papers: this item is included in nep-dev and nep-sea
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Published in Environment, Development and Sustainability (2018): pp. 1-21

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