An analysis of the probability of escaping poverty between poor households in rural and urban

Authors

  • TRINH THANH NHAN
  • Anh Khoa Trinh

Keywords

Hộ nghèo, hồi quy logit nhị phân, nông thôn, phân rã Blinder-Oaxaca, thành thị, thoát nghèo

Abstract

This study aims to shed light on the probability of escaping poverty between poor households in rural and urban Vietnam. As an alternative to the experimental method, this study takes advantage of the statistical methods, econometric models, and the census dataset (VHLSS) of 2020. We select 2,918 households classified as poor in 2019 to elucidate the impact of demographic and socio-economic characteristics of households and regions (rural and urban) on the household's poor status in 2020. The study combines binary logit regression models and the Blinder-Oaxaca decomposition method to rigorously evaluate the impact of factors and the difference in the probability of escaping poverty between poor households in rural and urban. The results show that although the poverty rate in rural is higher than that in urban areas, the probability of escaping poverty in rural is significantly higher than that in urban. The impact of demographic and socio-economic characteristics factors on the probability of escaping poverty in rural areas is more evident than in urban areas. Besides providing information for policymakers seeking solutions to save poor households from poverty, this study provides a scientific method for further studies on disparity analysis between the two groups.

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Published

2023-08-31

Issue

Section

Scocial Economics