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Households earned income in Vietnam: Evidence from VHLSS 2008

By Truong Ngoc Quang (VNP 16)

Supervisor: Dr. Nguyen Van Phuong

Abstract

The most considerable element of households’ income structure on average is earned income which is one of the main drivers to improve the living standard of most Vietnamese households in recent years. However, there is an increasing tendency of income inequality and living standards’ difference between regions, rural and urban areas as well as between the richest and poorest households. This paper contributes to the understanding of the effects of Region-level characteristics, Community-level characteristics and Household and individual characteristics on household’s earned income. The determinants of earned income are considered at household, commune and regional levels. While wage employment still constitutes the backbone of the urban economy, non-farm activities and income diversification are increasingly significant for rural households. It is recognized that households’ physical capital (housing), human capital (education), and local infrastructure are significant determinants in increasing their earned income.

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