An Analysis of Household Vulnerability to Multidimensional Poverty and Implications for Poverty Reduction Policies in Vietnam

Abstract

Purpose: This study analyzes households' vulnerability to multidimensional poverty in Vietnam and provides implications for poverty reduction policies. Design/methodology/approach: This study uses the vulnerability as expected poverty approach, with the welfare threshold being the deprivation threshold of essential social services, to analyze households' vulnerability to multidimensional poverty. The method used is three-step feasible generalized least squares (FGLS). Findings: The results show that demographic characteristics, economic potential, and how households face shocks affect the level of deprivation of essential social services and fluctuations in household welfare. These factors also allow for the estimation of household vulnerability through the probability of falling into multidimensional poverty. Research limitations/implications: The study results imply that identifying the vulnerability of households to poverty is necessary to design early and appropriate support policies. Originality/value: This study is a rare one that analyzes the risk of falling into multidimensional poverty in Vietnam in the post-COVID-19 context. The results show that poverty issues must be analyzed not only at the present time but also pay attention to households' vulnerability in order to have appropriate and timely support measures.