Abstract

<p>In this thesis, I investigate intergenerational mobility of earnings and income among sons and daughters in Vietnam. In particular, my objective is to estimate intergenerational elasticity (IGE) of sons’ and daughters’ individual earnings, individual income, and family income with respective to father’s individual earnings. The two-sample two-stage least squares (TS2SLS) estimation is employed to achieve the research objective using two primary samples of father-son pairs and father-daughter pairs from Vietnam Household Living Standard Surveys (VHLSS) of 2012 and one secondary sample from Vietnam Living Standard Surveys (VLSS) of 1997-98. My results show that the baseline IGE estimates of Vietnamese sons are 0.361, 0.394 and 0.567 for individual earnings, individual income, and family income, respectively. For Vietnamese daughters, the baseline IGE estimates are 0.284, 0.333 and 0.522 for individual earnings, individual income, and family income, respectively. These IGE estimates explicitly reveal that Vietnam has the intermediate degrees of individual earnings and individual income mobility, and the low degree of family income mobility cross generations for both sons and daughters by the international comparison.</p>

Highlights

  • Inequality has increasingly been viewed as a stylized problem facing a modern state in the twenty-first century (Piketty, 2014a, 2014b, 2015)

  • The R2 is 0.186, which suggests that nearly 20% of the variation in the log of individual earnings of potential fathers can be explained by these socioeconomic characteristics in the model

  • The baseline intergenerational elasticity (IGE) estimate of individual income is 17.25% higher than that of individual earnings. This IGE degree implicates that a 10% difference in fathers’ individual earnings is likely to result in an approximately 3.33% difference in daughters’ individual income in Vietnam. These IGE estimates for Vietnamese daughters’ individual earnings and individual income explicitly indicate the average levels of intergenerational mobility compared to other countries

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Summary

Introduction

Inequality has increasingly been viewed as a stylized problem facing a modern state in the twenty-first century (Piketty, 2014a, 2014b, 2015). The extent to which a child’s socio-economic status in the current generation is determined by his or her parents’ socio-economic outcome in the previous generation probably gives in-depth understanding of the degree of opportunity equality (Corak, 2013). This has been a very important motivation for extensive academic investigations of intergenerational mobility that has been witnessed over last three decades (Black and Devereux, 2011; Solon, 1999). The main difference in the approach to intergenerational mobility between sociologists and economists is how they define a measure of socio-economic status or outcome

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