The effect of urbanization on income disparity in Vietnam
DOI:
https://doi.org/10.31305/rrijm.2025.v10.n2.008Keywords:
Urbanization, income inequality, inverted U-shaped relationship, KuznetsAbstract
Inequality continues to be a significant issue for numerous nations globally. This study examines the impact of urbanization on income inequality in Vietnam using data from 63 centrally governed provinces and cities over the period 2013–2023. The findings indicate an inverted U-shaped relationship between urbanization and income inequality, wherein income inequality initially increases with urbanization but begins to decline after surpassing a certain threshold. Given that the current urbanization rate in several Vietnamese provinces and cities remains relatively low, further urbanization may exacerbate income inequality in the near future. Additionally, the study provides policy implications to assist local governments in formulating appropriate strategies to mitigate income inequality at different stages of urbanization.
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