Economic Mobility in Vietnam in the 1990s

27 Pages Posted: 20 Apr 2016

See all articles by Paul Glewwe

Paul Glewwe

University of Minnesota - College of Agricultural, Food and Environmental Sciences - Department of Applied Economics

Phong Nguyen

General Statistical Office, Vietnam

Date Written: April 26, 2002

Abstract

Vietnam's high economic growth in the 1990s led to sharp reductions in poverty, yet over the same time period inequality increased. This increased inequality may be less worrisome if Vietnamese households experience a high degree of income mobility over time. This is because high mobility implies that the long-run distribution of income is more equally distributed than the short-run distribution, since some individuals or households are poor in some years, while others are poor in other years.

Glewwe and Nguyen examine economic mobility in Vietnam using recent household survey panel data. The problem of measurement error in the income variable, which exaggerates the degree of economic mobility, is directly addressed. Correcting for measurement error dramatically changes the results. At least one half of measured mobility is because of measurement error.

This paper - a product of Macroeconomics and Growth, Development Research Group - is part of a larger effort in the group to study household welfare and poverty reduction in Vietnam.

Suggested Citation

Glewwe, Paul and Nguyen, Phong, Economic Mobility in Vietnam in the 1990s (April 26, 2002). Available at SSRN: https://ssrn.com/abstract=636185

Paul Glewwe (Contact Author)

University of Minnesota - College of Agricultural, Food and Environmental Sciences - Department of Applied Economics ( email )

1994 Buford Avenue
Room 231
St. Paul, MN 55108-1995
United States

Phong Nguyen

General Statistical Office, Vietnam

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