Identifyng Vietnam’s income inequality forms at the provincial level during the 2002-2010 period

Abstract

By identifying the different shapes that illustrate an increase or decrease in inequality at the provincial level, this paper allows to distinguish a kind of “temporarily and relatively acceptable” inequalities from an “on the alert” one, and thus provides a more detailed structure for a more complete understanding of the phenomenon. The results at the provincial level in Vietnam indicate that income gap between the richest 20% and the poorest 20% has widened for nine years, from 2002 to 2010, in most provinces (60 to 63). Inequality has reduced in only three provinces. At a more detailed level, it is alarming to note that a large majority of the above unequal provinces (55 to 60) belonged to the “on the alert” shapes A and E. Only five provinces have the “temporarily and relatively acceptable” shapes B and D. The shapes A, E, reflect the fact that the poor are becoming poorer than the average living standard.