A quantile regression decomposition of urban–rural inequality in Vietnam |
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Institution: | 1. School of Finance and Business, Shanghai Normal University, Shanghai 200234, China;2. School of Urban and Regional Science, Institute of Finance and Economics Research, Shanghai University of Finance and Economics, Shanghai 200433, China;3. Center for Think Tank Studies, Shanghai Academy of Social Sciences, Shanghai 200020, China |
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Abstract: | We use the Vietnam Living Standards Surveys from 1993 and 1998 to examine inequality in welfare between urban and rural areas in Vietnam. Real per capita household consumption expenditure (RPCE) is our measure of welfare. We apply a quantile regression decomposition technique to analyze the difference between the urban and rural distributions of log RPCE. In the earlier survey, the urban–rural gap is primarily due to differences in covariates such as education, ethnicity, and age. This is true across the entire distribution. In the later survey, this is true only for lowest quantiles. For the rest of the distribution, the gap is primarily due to differences in returns to covariates between the urban and rural sectors. |
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