Intergenerational Income Mobility in Vietnam

Type Working Paper
Title Intergenerational Income Mobility in Vietnam
Publication (Day/Month/Year) 2016
This paper uses five waves of Vietnam Living Standard Survey (VHLSS) in 1992/1993,
1997/1998, 2002, 2010, and 2012 from General Statistics Office of Vietnam (GSO) to estimate
income elasticity for Vietnam and contributes it to the growing of literature review on
intergenerational mobility. The result of analysis, employing the two-sample two-stage least
squares technique, shows that intergenerational income mobility is about 0.48 – 0.49 in Vietnam
and it is one of the most mobility in developing countries. In terms of distribution income, the
findings from transition matrix and two-sample instrumental variable quantile regression
highlight that the bottom quintile has the lowest mobility, implying that opportunities for
children in poor families escape the poverty being still fragile. Income mobility at top quintile,
in addition, has increase over time. Finally, educational mobility at bottom and second groups
has significant upper mobility and the top is “like father, like son”.

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