Does Horizontal Inequality Matter in Vietnam?

Abstract

This paper examines the issue of horizontal inequalities in Vietnam over the past 20 years. Using data from three recent Vietnam population censuses (1989, 1999, and 2009) and three Vietnam Household Living Standard Surveys (1998, 2008, 2012), we estimated numerous measures on inequalities between five groups against four welfare indicators. Our results show that horizontal inequality matters in Vietnam, in particular for ethnicity, region, and rural/urban groups. While there has been an improvement in horizontal inequality in education, this paper shows little change in other welfare indicators, in particular poverty. We also found that horizontal inequality does matter for poverty reduction in Vietnam and it needs more attention when designing poverty policies in the future.