A study on the factors affecting the wealth gap in vietnam

2 INTRODUCTION The rationale Wealth gap is one of the problems attracting the attention of The aim - Suggest system criteria and indicators to assess wealth gap and factors affecting wealth gap in Vietnam countries worldwide and set for the top position It is the fact that big - Review wealth gap in many different aspects gap in wealth will be detrimental to the growth, economic - Analyze the factors affecting wealth gap in Vietnam during development, social cohesion, threaten political stability, social the period 2002 - 2012 Consider whether factors belonging to the security of a nation International experience indicates that the rise in population characteristics and economic restructuring impact wealth wealth gap and income inequality adversely affect the quality of life gap or not? of people, increase poverty rates, hinder health and education The subject and scope development in general and contribute to the increase in crime for 3.1 The subjects the poor in particular In recent years, Vietnam has achieved high GDP growth rate, but its performance impact on the poor decreased considerably - Study the indicator system to evaluate wealth, wealth gap and the factors affecting the wealth gap - Study wealth gap and the factors affecting the wealth gap Although population groups’ income are increased and the life of all in Vietnam strata of the population has been improved, income growth rate of 3.2 The scope the poor is always lower than that of the rich, as a result, the gap between the rich and the poor is widen out The increase in wealth gap is a major challenge for sustainable development and humane in our country It is necessary to find the cause of rising wealth gap in our country Therefore, we need to research and analyze the factors affecting wealth gap, which is considered the basis to identify the right feasible solutions to limit the increase in wealth gap According to the above problems, the author has chosen the + Content: Analyzed the current situation of wealth gap in Vietnam on different perspectives and factors affecting wealth gap in Vietnam + Space: thesis used estimation model to analyze the database of all the 63 provinces/cities in the country + Time: The thesis analyzed for the period 2002 -2012 Research questions - What indicators are used to assess wealth, wealth gap and measure the effect of the factors on wealth gap in Vietnam? theme: "The study of factors affecting the wealth gap in Vietnam" so - Why does wealth gap tend to increase? What is the cause? as to carry out her doctoral thesis This is a very meaningful issue in - What are the decisive factors of wealth gap in Vietnam? terms of practicality; it is contemporarily significant in Vietnam’s - innovation and economic development Do the population characteristics restructuring have an impact on wealth gap? and economic The method - Literature review, information, synthesis, comparison - Statistical Methods - Quantitative analysis method: Using Stata - Chapter 3: Analyze the situation of wealth gap in Vietnam during the period 2002-2012 - Chapter 4: Analyze the factors affecting wealth gap in Vietnam during the period 2002-2012 CHAPTER The contributions + Clarify incisively the rationale for wealth gap Overview AN OVERVIEW ON WEALTH GAP AND FACTORS the theories and empirical researches on the impact of the factors AFFECTING WEALTH GAP related to the problem of inequality in the country and in the world 1.1 A review of researches on wealth gap and the effect of Develop a theoretical framework used for analyzing the factors factors on wealth gap affecting wealth gap in Vietnam 1.1.1 The studies describes the wealth gap + Suggest criteria and indicator system for assessing wealth, wealth gap and factors affecting it + Calculate the coefficient, the criteria for assessing the situation of wealth gap and factors affecting wealth gap in Vietnam + Analyze the impact of these factors on wealth gap - The studies of wealth and social stratification in range of each region or area were only separate arrays describing the gap between the rich and the poor in each region or each area They didn’t show an organic relationship between the regions and areas to be able to generalize the wealth gap in the country + The results of the estimation models indicate that the - The studies of wealth and social stratification in the country population characteristics and economic restructuring have an impact drew an overall picture of wealth gap and income inequality in the on the increase of wealth gap country Studies have confirmed inequality in Vietnam tends to + Suggest some solutions to limit wealth gap in Vietnam and increase due to the difference in space, but they did not quantify and a number of recommendations on statistical methods for wealth gap point out specific factors affecting the increase there in Vietnam 1.1.2 The studies used the analysis model of the effect of factors to The structure the wealth gap Besides the introduction and conclusion, the thesis consists of chapters: - Chapter 1: Overview of wealth gap and the factors affecting the wealth gap - Chapter 2: The indicator system and methods for analyzing factors affecting the wealth gap 1.1.2.1 The cross data regression models to the wealth gap Studies on wealth gap analyzed by using cross data regression models quantified the effect of factors to the problem of poverty or wealth and inequality in income These studies have only quantified the impact of factors on the household’s characteristics belonging to the income of a poor or rich group in a given year 5 1.1.2.2 The regression model of wealth gap using the panel data The studies using the panel data model related to wealth gap concepts are based on a certain number of criteria to consider like property, houses, land, serving utensils for living, income or by domestic and foreign scholars almost exclusively analyze the expenditure effects in a certain aspect on wealth gap or income inequality which 2.2.2 The concept of poverty focuses mainly on: international integration, growth and economic development, population aging, the financial system There are many concepts of poverty Single - way viewpoint considers poverty just as lack of food to eat and what to wear In Vietnam, quantitative studies use panel data to analyze whereas the multi - dimensional perspective considers poverty in income inequality limitedly Besides mainly description, some many different aspects: In addition, the demand for essential studies on income inequality focused on issues of international products and the living conditions are not satisfied, poverty is also integration and economic growth considered to be the issues of education, health care, vulnerable, With the desire to find out the factors really impacting wealth gap, the thesis using panel data analysis methods to investigate factors influencing wealth gap voiceless in society 1.2.2.3.The concept of wealth gap In general, the concepts say wealth gap is evaluated 1.2 An overview theory on wealth gap primarily basing on income or expenditure The thesis notion of 1.2.1 The theoretical basis of wealth gap wealth gap expresses differences in property, income, expenditure, - Karl Marx’s theory: Marx studied social stratification and level of education, medical, health care, housing conditions and wealth gap based on class polarization He said that division of access to social services between rich population and poor classes and social classes are derived from the difference in property population, between urban and rural areas, between regions and ownership localities - Max Weber’s theory: Weber's theory says that the cause of inequality is due to the economic political power and social prestige - Modern theory: Study social inequality based on many new and different aspects, which are not influence independently, but 1.2.3 The approach measuring wealth gap 1.2.3.1 The approach basing on the income gap between the richest and poorest This approach is determined by comparing incomes between always relate reciprocally the rich and the poor It is easy to calculate and understand and it’s 1.2.2 The concept of wealth, poverty and wealth gap convenient to compare over time, between the local, the national, but 1.2.2.1 Concept of wealth it does not indicate the income distribution in the medium group There are many different concepts of wealth; each concept evaluates a rich household in different aspects As a whole, these 1.2.3.2 The approach basing on the standard "40" CHAPTER Recommended by the World Bank in 2002, this approach determines the rate of income of 40% of the population with the lowest income in total income of all the population INDICATOR SYSTEM AND METHODS ANALYZING FACTORS AFFECTING WEALTH GAP The restrict of this approach is to only reflect the income 2.1 The necessity and the requirements of building a system of distribution of two groups of lowest income It does not reflect the statistical indicators to assess wealth, wealth gap and the factors income distribution of the income groups and above average affecting wealth gap 1.2.3.3 The approach basing on the Lorenz curve 2.1.1 The necessity of building a system of statistical indicators to Lorenz curve describes the percentage of income received in total corresponding to the percentage of people who receive such income starting from the poorest households Lorenz curve reflects the distribution of income of all groups However, Lorenz curve does not quantify income inequality, in case of Lorenz intersect, inequality can not be ranked 1.2.3.4 The approach basing on the Gini coefficient The Gini coefficient is defined as the ratio of the area assess wealth, wealth gap and the factors affecting wealth gap Wealth gap is assessed more deeply & comprehensively relying on not only income but also many different aspects Each aspect is a criterion to distinguish wealth These criteria must be concretized into the criteria for assessment Currently GSO has given no public announcement of the criteria for assessing wealth and indicator system to measure wealth, wealth gap and factors affecting wealth gap Therefore, it is between the Lorenz curve and the diagonal 450 compared to the area necessary to propose criteria and indicator system of triangles beneath the diagonal 450 2.1.2 Requirements of the indicator system The limitation of the Gini coefficient is that it can not be Statistical Indicator System must be effective, comparative, separated into groups to reflect inequalities between groups and integrative and feasible within each group 2.2 Recommend Statistical Indicator System for assessing 1.2.3.5 The approach basing on Entropy aggregate measures wealth, wealth gap and the factors affecting wealth gap Entropy aggregate measures are used to overcome the 2.2.1 Oriented proposals limitations of Gini coefficient, allowing us to assess the level of According to the theoretical basis and the studies, the thesis national inequality by investigating how much impact of inequality suggests five criteria for evaluating wealth: (i) income, (ii) within each subgroup or between groups expenditure, (iii) assets, (iv) education and (v) medical and health care Based on these criteria, the thesis proposes the most appropriate indicators to measure wealth, wealth gap and factors affecting wealth gap Three indicators in Indicator Systems are presented: the 10 concept, the methods, and its meaning used in the analysis of each - Coefficient spacing income / expenditure indicator system and information source These indicator systems - Coefficient of rural urban division will include: - Gini coefficient - The indicators have been mentioned in a publication or in an indicator system: These indicators may be remained or completed - The new indicators: the thesis will build them 2.2.2 Recommend statistical indicator system for wealth 2.2.2.1 Indicators reflecting income - Per capita income - Income Structure 2.2.2.2 Indicators reflecting expenditure - Entropy synthetic index 2.2.4 Propose statistical indicators system of factors affecting wealth gap 2.2.4.1 Indicators reflecting population characteristics - Proportion of the population aged and over 15 is ethnic minorities - The population structure in working age - Proportion of the population depends - Expenditures per capita consumption - The proportion of urban population - The structure of consumer spending - Proportion of population aged and over 15 is literacy 2.2.2.3 Indicators reflecting Property - The value of durable goods per household - The percentage of households of each housing type 2.2.2.4 Indicators reflecting education - Proportion of the population aged and over 15 achieve the highest degree - The spending structure in education 2.2.2.5 Indicators reflecting the situation of health and health care - Net migration rate 2.2.4.2 Indicators reflecting economic restructuring - The labor structure divided by sector - GDP Structure divided by sector 2.2.4.3 Indicators reflecting the trend of international integration - The rate of export (or import) to GDP - The proportion of capital foreign direct investment to GDP 2.2.4.4 Indicators reflecting other socio - economic characteristics - Proportion of population with medical care - GDP per capita - The proportion of treatment in/ out of residence - The ratio of financial encouragement in GDP - Spending for per person on medical care - Labor productivity by region economy - Proportion of population with access to clean water 2.3 Methods analyzing factors affecting wealth gap - The percentage of households using sanitary latrines 2.3.1 Methods for analyzing panel data model 2.2.3 Recommend statistical indicator system assessing wealth gap - Coefficient between the rich and the poor 2.3.1.1 General introduction of panel data model 12 11 Panel data is combined data, combining data by time series Research framework is used to analyze the factors affecting wealth gap and cross data by space 2.3.1.2 Advantages of panel data Panel data increases the sample size, handles heterogeneity issues, and provides more information, less multicollinearity and more effectiveness It studies the changing dynamics of cross - time Factors of institution and policy Factors reflecting population characteristics Factors reflecting economic restructuring Wealth gap (Dependent variables) units and controls variables unobserved but change over time and it studies more complex models Factors reflecting international integration 2.3.2 Types of panel data General model: Factors of geography Factors reflecting other socio - economic characteristics i: Cities or provinces 2.3.2.1 Unchanged coefficient model (POLS) CHAPTER In gross squared model (POLS), all the coefficients block ANALYSIS OF WEALTH GAP IN VIETNAM DURING and regression coefficient constant over time and across space 2.3.2.2 Random effects model (REM) PERIOD 2002 - 2012 3.1 Analysis of wealth gap in Vietnam basing on income REM model is used in the case of heterogeneous elements 3.1.1.The general situation of wealth gap among provinces/ cities unobserved and having no correlation In terms of Gini coefficient, in 10 years (2002 - 2012) relationship with the independent variables of the model The model income inequality in Vietnam tends to rise, but only modestly form: increases (**) As for Lorenz curve, inequality increases only in the low income group 2.3.2.3 Fixed effects model (FEM) Income spacing and wealth gap ratio says that income FEM model is used in case of heterogeneous elements correlated with the independent variables Xi The model form: (***) 2.3.3 Construct research theoretical framework inequality in Vietnam increases rapidly and grows; these coefficients are gradually reaching higher levels of inequality Compared to the pretty rich groups, the less income ratio the poor group received, the poorer they become, which causes a bigger gap in wealth 13 14 Income gap between urban and rural areas is narrowing Rich groups because income structure of rural areas is being changed in the Income ratio direction of progress making the income in this area increase - While the wealth gap within the urban area tends to pretty group decrease, in rural areas it tends to increase, which make wealth gap in the country increase too Everage group Close poor group Poor group 3.1.3 Wealth gap in each territory and province/city In the early years of the period 2002 - 2012, wealth gap of the regions with higher incomes and living standard such as the Years South East and the Red River Delta took place more deeply than that Chart 3.3: Income proportion of poor - rich groups during the period 2002 - 2012 3.1.2 Wealth gap between urban - rural areas and in each area Gap ratio between urban and rural areas is being shortened, but the absolute gap increased by urban - rural areas in Vietnam in the period 2002 - 2012 Income per capita a month Sectors 2002 Urban 622,1 815,4 1058,4 1605,2 2129,5 2989,1 Rural 275,1 378,1 505,7 762,2 1070,4 1579,4 374,0 437,3 552,7 843,0 1059,1 1409,7 Urban - rural absolute gap Urban - rural ratio gap (time) 2006 2008 inequality tends to decrease; the remaining seven are on an upward trend, especially the most strongly increase in poor areas such as 2010 3.2 Wealth gap in other aspects 3.2.1 Property gap First, convenience and consumer durables: Poor households (Thousand Dong) 2004 Except for the Southeast region, wealth gap and income Highland, Northwest and Northeast Table 3.3: Income per capita a month Year of the low - income regions, but the last stage is the opposite 2012 have little comfort in family; worthy consumer durables of the households in this group only account for 1/10 of the rich group The utensils they are using mostly all kinds of cheap and outdated furniture In contrast, wealthier households mainly use facilities and luxury items with great value Second, housing gap between the two groups is gradually 2,3 2,2 2,1 2,1 2,0 1,9 changing in a positive direction The vast majority of wealthy households live in permanent homes whereas poor households Source: Survey Results about households’ Living Standards by General Department of Statistics mainly live in semi - permanent or temporary houses 16 15 3.2.2 Expenditure gap The gap in living standards of the households in the two groups is still quite high and tends to widen: There is a gradual change in the structure of life expenditure 3.2.4 Gap in health and health care Because only the poor with severe diseases go to see the doctor, the proportion of people admitted to hospital for inpatient treatment is greater than that of the rich of the two groups in terms of food expenses in the direction of Inequalities in the health sector is also reflected a fairly reducing spending on food, drink and increase non - food expenses obvious way by the gap in health spending per person on health care In fact, 70% of poor households spend on food whereas 50% of rich and access to health services households spend on their cultural life, spirit, education and best The vast majority of the rich population use clean water health care treated by the plant supplier or from wells, whereas about 70 - 85% 3.2.3.Education gap of the poor population use self - sufficient, unhygienic water Educational attainment between the rich and the poor is resource It is obvious that inequality of opportunity to use clean increasingly isolated 90% of the population aged and over 15 in water between two groups fell quite clearly in the period 2002 - poor groups get mainly low levels of education without highest 2012 More particular, the difference in the proportion of population degree due to: never been to school, no degree, elementary or junior between the two groups with access to clean water decreased: from high school graduation On the contrary, the majority of the 12.6 times (2002) to 5.9 times (2012) population in rich groups at this age range achieves the highest level of over high school graduation Living environment gap between the rich and the poor has been shortened In 2002, regarding using sanitary latrines, the While rich groups increase the proportion of high levels of proportion of rich households is 20 times higher than that of poorer education, poor groups remain unchanged The difference in households and by 2012 this proportion accounts for only 3.79 times educational level between the rich and the poor groups sharply 3.3 Synthesize multidimensional wealth gap during the period increase in this period accounting from 3.5 times (2002) to 73 to 2002 - 2012 106.5 times to 101.5 times (2012) There is a big gap in expenditure on education in general and each expenditure in particular between the two groups Poor people also have to pay money for such expenses as school building, class, school uniforms, school supplies… occupying 4/5 of their total educational spending The thesis synthesizes wealth gap in multiple dimensions In every dimension, the thesis chooses some representative indicators for evaluation and comparison 18 17 CHAPTER General wealth gap Wealth gap in using clean water Wealth gap in using septic and semi-septic toilet Urban wealth gap Rural weal gap Year Year Wealth gap in average medical costs per person Year Wealth gap in education of population over 15 years old Wealth gap in Durable items Wealth gap in closed & semi-closed housing Wealth gap in average expenditure per person Wealth gap in non-food Wealth gap in food Figure 3.7: multidimensional inequality during the period 2002 - 2012 - Wealth gap in the whole country in general and in each region in particular grows particularly strongly in rural areas - Differences in income, education levels between the rich and poor groups are widening - Gap in living standards, consumer spending, housing and means of living between the rich and poor has improved, but is still quite high - Inequalities in health has not been improved much, the poor have little chance of medical care in the highly - qualified health services - Poor people are also actively interested in health care; living environment contributing to sharply reduce wealth gap ANALYSIS OF FACTORS AFFECTING WEALTH GAP IN VIETNAM DURING THE PERIOD 2002 - 2012 4.1 Factors affecting wealth gap in Vietnam today 4.1.1 Factors reflecting the development of the market economy institutions The failure of the market economy institutions will cause income inequality and increase the big gap between the rich and the poor For instance, the underdevelopment of capital markets causes small businesses and the poor not to have access to formal sources or active deformation of the real estate market and stock market makes a group of people rich quickly The richness thanks to land speculation or stock does not supply any work for the society and does not contribute to the poverty alleviation but makes an increasingly wider gap between the rich and the poor 4.1.2 Factors reflecting the state’s policy The weakness of the state policy still exists, causing the barrier to the economic and social development and making a bigger wealth gap More specific: Public expenditure policy: in favor of services for more rich consumers causing the fact that the rich benefits more than the poor In other words, the management of public spending is inadequate and creates opportunities for loss and state budget waste In general, investment policies and public investments in particular are not reasonable and effective In Poor areas, rural areas and mountainous areas, the rate of investment is too low These regions are more isolated compared to other regions causing an increasing gap between the rich and the poor Public investment 19 20 policy is mainly applied for state enterprises but creates very few jobs with low efficiency Management policy of the state: shortcoming and not close; for example, there appear some new - rich people with unclear income Policy supporting for the poor is not highly effective because as reflected many poor people become poor due to lack of capital, lack of jobs, lack of experience and level of knowledge Policies and projects can not be overall coherent in poverty reduction; lack of communication, coordination and overlap Health and health care policy remains shortcomings; medical network is distributed irrationally & inconveniently for people living in mountainous areas and remote areas Mechanisms and policies for free health insurance for the poor and ethnic minorities are still loose and incomprehensive 4.1.3 Factors reflecting geographical aspects 4.1.3.1 Uneven development between urban and rural areas, within each region During the period 2002 - 2012, the increase in wealth gap in Vietnam was mainly due to the uneven development within rural areas, but the gap between urban and rural areas contributed only a small part Uneven speed of development among rural areas in the country is also a cause 4.1.3.2 Gap between regions and within each region The uneven speed of development between regions causes regional gap to grow The effect of wealth gap between regions on the whole country gets smaller Wealth gap contributions of eight regions to the whole country’s inequality are growing conversely Approximately 5/6 of inequality of the country is due to the uneven distribution of income within the region, the remaining 1/6 is due to uneven development between regions 4.1.4 Factors reflecting population characteristics Gap in ethnicity, age, education level, and living area affects the gap between the rich and the poor 4.1.5 Factors reflecting economic restructuring Lewis's theory says that the shift from agriculture to industry contributes to increase inequalities in the early stages and reduce at the later stage 4.1.6 Factors reflecting international integration trend The process of opening and integration into the world economy brings about the gap in income and living standard between population groups, between urban and rural areas, which is also a common event in the agricultural country as Vietnam 4.1.7 Factors reflecting other socio - economic characteristics Factors belong to other socio - economic characteristics affecting wealth gap such as economic growth, labor productivity, and tax rate in the contribution to GDP 4.2 Estimate and analyze regression model of factors affecting wealth gap 4.2.1 Develop regression model 4.2.2 Estimate and select the appropriate regression model * The estimation of the regression model with the dependent variables is Gini coefficient: estimation results indicate that REM Robust model is the most appropriate * The estimation of the regression model with dependent variables is wealth gap coefficient: estimation results indicate that FEM - Robust model is the most appropriate 21 22 4.2.3 Analyze and evaluate the estimation results of regression variable and the ratio of service labor variable): results estimates that models if the proportion of labor in construction industry and services rises The estimation results show that the majority of factors 1%, wealth gap rises 1.6% The shift in labor structure among these affecting wealth gap except for labor productivity variables (NS1 and three sectors contributes to earnings growth, but it also contributes to NS2 variable) More specific: First, GDP per capita (variable log DP per capita): while the increase in wealth gap Sixth, GDP divided by economic sectors (the rate of VA in GDP per capita increased 1%, income inequality between population GDP construction industry - TLVAcn variable and the rate of VA in groups increases up to 2.87% That means the more economy develops the greater inequality and wealth gap are GD services - TLVAdv variable): the increase in the rate of VA in GDP in construction industry has reduced wealth gap in the country Second, the proportion of the population aged and over 15 as The shift in economic structure has brought about the rapid growth in ethnic minorities (variable ethnic minorities): contributes to increasing wealth gap in our country in recent years Uneven ethnic VA in construction industry contributing greatly to economy GDP, which promote economic development in a sustainable way population distribution creates wealth gap between localities Seventh, the capital ratio of foreign direct investment to Provinces with a higher rate of ethnic minorities create a deeper wealth gap than other provinces GDP (variable TLFDI): estimated regression coefficient indicates that if the ratio of FDI to GDP rises 1%, the ratio of wealth gap will Third, the proportion of urban population (variable urban decrease 2.31% This means the deeper the international integration population): if the proportion of urban population is up 1%, the proportion of wealth gap decreases 0.07% That means the increase is, the more wealth gap reduces Eighth, the dummy variables over time (variable i.year): in the proportion of the urban population decreases income compared to 2002, the economic development of the later years of inequality significantly The urbanization has created many job this period negatively affected the income inequality That means opportunities for poor population, which positively contributes to economic and social development of different years contributes to reducing wealth gap in our country the increase in wealth gap over time at different levels Fourth, the population structure in working age (percentage of population under 15 years old - population rate -15 years old variables 4.3 Policy Recommendations 4.3.1 Policy recommendations to limit the increase in wealth gap and the proportion of population over 65 - population rate - 65 years - Continue to promote economic institutional innovation old): the change in the age structure of the population in recent years - Promote economy in rural areas towards sustainable has contributed to reduce income inequality in our country Fifth, labor structure divided according to economic sectors (the ratio of construction industry - the ratio of industrial labor development - Focusing on industry and services development in the provinces or cities or underdeveloped regions 24 23 - Develop social security policies to improve the quality of to assess the wealth, wealth gap analysis and the factors affecting life for the poor, ethnic minorities and the elderly in a sustainable wealth gap, which provides an indicators system for future studies on way wealth gap 4.3.2 Policy recommendations for statistical work of wealth gap The thesis points out the advantages of applying panel and the factors affecting it - Develop a common set of indicators on all aspects of data methods in the regression model analysis of factors affecting wealth gap & build a composite measure to assess wealth gap steps in the estimation of the panel data model, which is the basis of multidimensionally basing on this set - It should be defined more clearly in the calculation for each reference for the future studies using the Panel model indicator which must be taken into account by the locals to have high affecting wealth gap in Vietnam, which provides a reference for consistency of data between the local and the GSO - Popularize wealth gap data in more details and diversity to future researches province/city calculate and analyze wealth gap in Vietnam in the following wealth gap The thesis offers types of panel data models and the Develop a theoretical framework for the studies of factors Use the data survey on MSDC from 2002 to 2012 to CONCLUSION aspects: income, expenses, assets, education, medical and health The thesis overviews scholars’ studies at home and abroad care The research results show clearly that wealth gap in terms of related to wealth gap These studies are started with qualitative income, assets and education is growing whereas differences in life, researches describing social stratification and wealth gap and then health and health care possibilities are gradually being shortened quantitative analysis of inequality in income/expenditure Besides, Collect and calculate a set of indicators of factors the thesis reviews the panel data model to analyze income inequality affecting wealth gap in 63 provinces/cities across the country These Based on the review, the author has found space for her research indicators reflect such aspects as: population characteristics, The thesis gathers systematically a theoretical basis about wealth gap, viewpoints on wealth, poverty, wealth gap In particular, economic restructuring, and international integration and other social - economic characteristics the thesis achieves an overview of approaches to assess wealth gap The thesis points out factors belonging to the development from simple to complex and point out the advantages and limitations of market economy institutions such as the role and access to land, of each measure capital, property, or active deformation of the real estate market… According to research overview and related theories, the may affect wealth gap in Vietnam thesis has proposed five criteria for evaluating wealth Based on Factors of the state institution and policies such as public these criteria, the thesis proposes and improves the indicators system expenditure policy, investment policies, policies to support the poor, 26 25 health policy, and management policy… The shortcomings of these policies are the cause of the increase in wealth gap in our country 10 Over 80% of the increase in income inequality in recent years is due to uneven development within each region, each region and mainly due to the increase in wealth gap within rural areas Moreover, the thesis shows that the income gap ratio between urban rural areas tends to narrow, but the absolute growth between the two regions is widening again 11 Develop and estimate the recovery model of factors affecting wealth gap The results have found a relationship between wealth gap and factors reflecting population characteristics and economic restructuring The results point out factors which have a positive impact (reduction) and negative impact (increase) on wealth gap in our country Basing on these results, the thesis suggests policies in line with the actual conditions of our country in order to limit the increase in wealth gap and gives recommendations for statistical work in service of evaluating and analyzing wealth gap better 12 Limitations of the thesis: Although the thesis has proposed criteria for evaluating wealth gap multidimensionally, these criteria have not been integrated into a composite index to have a multidimensional assessment It is also a thesis’ restriction that should be further studied in the future [...]... recommendations for statistical work of wealth gap 4 The thesis points out the advantages of applying panel and the factors affecting it - Develop a common set of indicators on all aspects of data methods in the regression model analysis of factors affecting wealth gap & build a composite measure to assess wealth gap steps in the estimation of the panel data model, which is the basis of multidimensionally... of indicators of factors the thesis reviews the panel data model to analyze income inequality affecting wealth gap in 63 provinces/cities across the country These Based on the review, the author has found space for her research indicators reflect such aspects as: population characteristics, 2 The thesis gathers systematically a theoretical basis about wealth gap, viewpoints on wealth, poverty, wealth. .. (increase) on wealth gap in our country Basing on these results, the thesis suggests policies in line with the actual conditions of our country in order to limit the increase in wealth gap and gives recommendations for statistical work in service of evaluating and analyzing wealth gap better 12 Limitations of the thesis: Although the thesis has proposed criteria for evaluating wealth gap multidimensionally,... wealth gap In particular, economic restructuring, and international integration and other social - economic characteristics the thesis achieves an overview of approaches to assess wealth gap 8 The thesis points out factors belonging to the development from simple to complex and point out the advantages and limitations of market economy institutions such as the role and access to land, of each measure capital,... the more economy develops the greater inequality and wealth gap are GD services - TLVAdv variable): the increase in the rate of VA in GDP in construction industry has reduced wealth gap in the country Second, the proportion of the population aged and over 15 as The shift in economic structure has brought about the rapid growth in ethnic minorities (variable ethnic minorities): contributes to increasing... province/city calculate and analyze wealth gap in Vietnam in the following wealth gap The thesis offers 3 types of panel data models and the 5 Develop a theoretical framework for the studies of factors 6 Use the data survey on MSDC from 2002 to 2012 to CONCLUSION aspects: income, expenses, assets, education, medical and health 1 The thesis overviews scholars’ studies at home and abroad care The research... show clearly that wealth gap in terms of related to wealth gap These studies are started with qualitative income, assets and education is growing whereas differences in life, researches describing social stratification and wealth gap and then health and health care possibilities are gradually being shortened quantitative analysis of inequality in income/expenditure Besides, 7 Collect and calculate a set... urban rural areas tends to narrow, but the absolute growth between the two regions is widening again 11 Develop and estimate the recovery model of factors affecting wealth gap The results have found a relationship between wealth gap and factors reflecting population characteristics and economic restructuring The results point out factors which have a positive impact (reduction) and negative impact (increase)... support the poor, 26 25 health policy, and management policy… The shortcomings of these policies are the cause of the increase in wealth gap in our country 10 Over 80% of the increase in income inequality in recent years is due to uneven development within each region, each region and mainly due to the increase in wealth gap within rural areas Moreover, the thesis shows that the income gap ratio between... Analyze and evaluate the estimation results of regression variable and the ratio of service labor variable): results estimates that models if the proportion of labor in construction industry and services rises The estimation results show that the majority of factors 1%, wealth gap rises 1.6% The shift in labor structure among these affecting wealth gap except for labor productivity variables (NS1 and