[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/oec/devaaa/328-en.html
   My bibliography  Save this paper

Income mobility in times of economic growth: The case of Viet Nam

Author

Listed:
  • Ian Brand-Weiner

    (OECD)

  • Francesca Francavilla
Abstract
This paper analyses income mobility in Viet Nam from 2004 to 2008. The concept of income mobility is important for developed and developing economies, especially for those, such as Viet Nam, witnessing a stable persistent economic growth and profound structural transformations. Income mobility adds to the already established literature on poverty and inequality by quantifying how much households benefit from the economic performance of a country. The analysis shows that Viet Nam’s growth facilitated households’ income mobility. The analysis of the drivers of households’ mobility invites policy makers to tailor interventions, e.g. assisting less mobile households with many dependents, or endowing households engaging in agriculture –an important source of income and driver of mobility – with appropriated skills and tools. Furthermore, it is shown that public transfers have only little impact on income mobility, indicating that their effectiveness has to be improved if the state wants to assist households in mitigating shocks and reducing inequality. Cette étude analyse la mobilité des revenus au Viet Nam entre 2004 et 2008. Le concept de mobilité des revenus est important pour les économies développées et en développement, en particuliers pour celles, tel le Viet Nam, ayant fait l’expérience d’une croissance économique persistante ainsi que de profondes transformations structurelles. La mobilité des revenus contribue aux connaissances en termes de pauvreté et d’inégalités en permettant la quantification du bénéfice tiré par les ménages de la performance économique de leur pays. L’analyse montre une augmentation de la mobilité des revenus due à la croissance au Viet Nam. L’analyse des facteurs déterminants conclue sur un besoin d’ajustement des politiques afin d’assister les ménages moins mobiles avec de nombreux dépendants, ainsi que le besoin d’assister les ménages dépendants de l’agriculture – un facteur important de revenu et de mobilité – avec les outils et connaissances nécessaires. En outre, les transferts publics n’ont que peu d’impact sur la mobilité des revenus, et requièrent une amélioration de leur efficacité pour assister les ménages dans l’atténuation de chocs et afin de réduire les inégalités.

Suggested Citation

  • Ian Brand-Weiner & Francesca Francavilla, 2015. "Income mobility in times of economic growth: The case of Viet Nam," OECD Development Centre Working Papers 328, OECD Publishing.
    • Handle: RePEc:oec:devaaa:328-en
    DOI: 10.1787/5jrp0hz8thjl-en
    as

    Download full text from publisher

    File URL: https://doi.org/10.1787/5jrp0hz8thjl-en
    Download Restriction: no
    File URL: https://libkey.io/10.1787/5jrp0hz8thjl-en?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ian Brand-Weiner & Francesca Francavilla & Mattia Olivari, 2015. "Globalisation in Viet Nam: An Opportunity for Social Mobility?," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 2(1), pages 21-33, January.
    2. Ingrid Woolard & Stephan Klasen, 2005. "Determinants of Income Mobility and Household Poverty Dynamics in South Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 41(5), pages 865-897.
    3. Luis Ayala & Mercedes Sastre, 2008. "The structure of income mobility: empirical evidence from five UE countries," Empirical Economics, Springer, vol. 35(3), pages 451-473, November.
    4. Huu Chi Nguyen & Christophe J. Nordman & Fran�ois Roubaud, 2013. "Who Suffers the Penalty?: A Panel Data Analysis of Earnings Gaps in Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 49(12), pages 1694-1710, December.
    5. Van Kerm, Philippe, 2006. "Comparisons of income mobility profiles," ISER Working Paper Series 2006-36, Institute for Social and Economic Research.
    6. Prema-chandra Athukorala & Tran Tien, 2012. "Foreign direct investment in industrial transition: the experience of Vietnam," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 17(3), pages 446-463.
    7. Fritzen, Scott, 2002. "Growth, inequality and the future of poverty reduction in Vietnam," Journal of Asian Economics, Elsevier, vol. 13(5), pages 635-657.
    8. Glewwe, Paul & Phong Nguyen, 2002. "Economic mobility in Vietnam in the 1990s," Policy Research Working Paper Series 2838, The World Bank.
    9. Nguyen Thanh Xuan & Yuqing Xing, 2008. "Foreign direct investment and exports The experiences of Vietnam1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(2), pages 183-197, April.
    10. repec:dau:papers:123456789/1562 is not listed on IDEAS
    11. Dwayne Benjamin & Loren Brandt & Brian McCaig, 2017. "Growth with equity: income inequality in Vietnam, 2002–14," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 15(1), pages 25-46, March.
    12. Arden Finn & Murray Leibbrandt & James Levinsohn, 2014. "Income mobility in a high-inequality society: Evidence from the first two waves of the National Income Dynamics Study," Development Southern Africa, Taylor & Francis Journals, vol. 31(1), pages 16-30, January.
    13. repec:dau:papers:123456789/12321 is not listed on IDEAS
    14. Aristei, David & Perugini, Cristiano, 2015. "The drivers of income mobility in Europe," Economic Systems, Elsevier, vol. 39(2), pages 197-224.
    15. Brian McCaig & Nina Pavcnik, 2018. "Export Markets and Labor Allocation in a Low-Income Country," American Economic Review, American Economic Association, vol. 108(7), pages 1899-1941, July.
    16. Gary Fields & Paul Cichello & Samuel Freije & Marta Menendez & David Newhouse, 2003. "Household income dynamics: a four-country story," Journal of Development Studies, Taylor & Francis Journals, vol. 40(2), pages 30-54.
    17. Tapan Mitra & Efe A. Ok, 1998. "The measurement of income mobility: A partial ordering approach," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 12(1), pages 77-102.
    18. Ding, Ning & Wang, Yougui, 2008. "Household income mobility in China and its decomposition," China Economic Review, Elsevier, vol. 19(3), pages 373-380, September.
    19. Julie Litchfield & Patricia Justino, 2004. "Welfare in Vietnam during the 1990s: Poverty, inequality and poverty dynamics," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 9(2), pages 145-169.
    20. repec:bla:econom:v:66:y:1999:i:264:p:455-71 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Margaryta Klymak, 2019. "The effect of foreign competition on family and network labour allocation," WIDER Working Paper Series wp-2019-39, World Institute for Development Economic Research (UNU-WIDER).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ian Brand-Weiner & Francesca Francavilla & Mattia Olivari, 2015. "Globalisation in Viet Nam: An Opportunity for Social Mobility?," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 2(1), pages 21-33, January.
    2. Perugini, Cristiano, 2020. "Patterns and drivers of household income dynamics in Russia: The role of access to credit," BOFIT Discussion Papers 11/2020, Bank of Finland Institute for Emerging Economies (BOFIT).
    3. David Aristei & Cristiano Perugini, 2022. "Credit and income mobility in Russia," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(3), pages 639-669, September.
    4. Perugini, Cristiano, 2020. "Patterns and drivers of household income dynamics in Russia : The role of access to credit," BOFIT Discussion Papers 11/2020, Bank of Finland, Institute for Economies in Transition.
    5. repec:zbw:bofitp:2020_011 is not listed on IDEAS
    6. , Aisdl, 2014. "Vietnam's Political Economy in Transition (1986-2016)," OSF Preprints 2wxdg, Center for Open Science.
    7. Quan-Hoang Vuong, 2014. "Vietnam’s political economy: a discussion on the 1986-2016 period," Working Papers CEB 14-010, ULB -- Universite Libre de Bruxelles.
    8. Tobias Lechtenfeld & Asmus Zoch, 2014. "Income Convergence in South Africa: Fact or Measurement Error?," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 157, Courant Research Centre PEG.
    9. Hien, Nguyen Thi Thu, 2019. "Consequences of urban migration of adult children for the elderly left-behind in rural Vietnam," OSF Preprints zxyf8, Center for Open Science.
    10. Markus Jäntti & Stephen P. Jenkins, 2013. "Income Mobility," SOEPpapers on Multidisciplinary Panel Data Research 607, DIW Berlin, The German Socio-Economic Panel (SOEP).
    11. Vuong, Quan-Hoang, 2014. "Vietnam's Political Economy in Transition (1986-2016)," OSF Preprints 48kus, Center for Open Science.
    12. Xuehua Shi & Xiaoyun Liu & Alexander Nuetah & Xian Xin, 2010. "Determinants of Household Income Mobility in Rural China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 18(2), pages 41-59, March.
    13. Aristei, David & Perugini, Cristiano, 2015. "The drivers of income mobility in Europe," Economic Systems, Elsevier, vol. 39(2), pages 197-224.
    14. , Aisdl, 2017. "Structural transformation, agriculture and livestock in Vietnam (1970-2015)," OSF Preprints y8d6b, Center for Open Science.
    15. Mai, Nhat Chi, 2017. "Structural transformation, agriculture and livestock in Vietnam (1970-2015): A multi-scale political economy of an ongoing revolution," OSF Preprints jyhps, Center for Open Science.
    16. Khor, Niny & Pencavel, John, 2008. "Measuring Income Mobility, Income Inequality, and Social Welfare for Households of the People’s Republic of China," ADB Economics Working Paper Series 145, Asian Development Bank.
    17. Fields, Gary S. & Meng, Xin & Song, Yang, 2022. "Earnings mobility during labor market reforms in urban China," China Economic Review, Elsevier, vol. 75(C).
    18. My Duong & Mark J. Holmes & Anna Strutt & Steven Lim, 2019. "Effects of Trade Agreements and Foreign Direct Investment on Trade: Evidence from Vietnam," International Journal of Economics and Financial Issues, Econjournals, vol. 9(3), pages 116-126.
    19. Joachim Jarreau, 2015. "The Impact of Naturalizations on Job Mobility and Wages: Evidence from France," Working Papers halshs-01117449, HAL.
    20. Emiliano Magrini & Pierluigi Montalbano & L. Alan Winters, 2017. "Vulnerability from trade in Vietnam," Working Papers 12/17, Sapienza University of Rome, DISS.
    21. Elena Bárcena & Olga Cantó, 2018. "A simple subgroup decomposable measure of downward (and upward) income mobility," Working Papers 472, ECINEQ, Society for the Study of Economic Inequality.

    More about this item

    Keywords

    income distribution; income growth;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:devaaa:328-en. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/dcoecfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.