Awareness of Income Disparity in Vietnam’s Urban Areas
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The Gini coefficient in Vietnam’s urban areas has gradually declined in recent years despite the country’s rapid economic growth. However, changes in people’s awareness of income inequality are not always consistent with changes in the Gini coefficient. This paper analyzes the awareness of income and social inequality of Vietnamese urban residents using data collected from a survey conducted in three major cities of Vietnam, namely Hanoi, Ho Chi Minh City and Da Nang. Accordingly, although most respondents are satisfied with their living conditions, their social satisfaction remains low and they are fully aware of the growing income inequality. Based on the results of the survey, we recommend that the government implements measures to raise the minimum wage as well as to tighten the salary payment regulations applied to businesses.
Abstract
The Gini coefficient in Vietnam’s urban areas has gradually declined in recent years despite the country’s rapid economic growth. However, changes in people’s awareness of income inequality are not always consistent with changes in the Gini coefficient. This paper analyzes the awareness of income and social inequality of Vietnamese urban residents using data collected from a survey conducted in three major cities of Vietnam, namely Hanoi, Ho Chi Minh City and Da Nang. Accordingly, although most respondents are satisfied with their living conditions, their social satisfaction remains low and they are fully aware of the growing income inequality. Based on the results of the survey, we recommend that the government implements measures to raise the minimum wage as well as to tighten the salary payment regulations applied to businesses.
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