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DOES GOVERNMENT SPENDING ON EDUCATION AFFECT PROVINCIAL INCOME INEQUALITY IN VIETNAM?
The Singapore Economic Review ( IF 1.736 ) Pub Date : 2020-10-29 , DOI: 10.1142/s0217590820490065
CHI MINH HO 1 , QUAN THAI-THUONG LE 1 , ANH THE VO 1 , DUC HONG VO 1 , DAO THI-THIEU HA 2
Affiliation  

This study is conducted to examine the effect on income inequality of government spending on education across 63 provinces in Vietnam. The generalized method of moments (GMM) regression technique is used to address potential endogeneity in the model caused by income inequality and inequality in government spending on education. Income inequality is proxied by both the Gini coefficient and the Theil index. Inequality in government spending on education in Vietnam is estimated using a novel entropic approach, which decomposes the inequality into two components: “within-province” inequality and “between-province” inequality. Data for the period from 2010 to 2016 are used. Our empirical findings are summarized as follows. First, “within-province” inequality accounts for a substantial portion of inequality in government spending on education. This means that although the Vietnamese national government has done well in terms of allocating spending on education across 63 provinces, inequality in education spending appears across districts within provinces. Second, both total inequality of government spending on education and its two components are positively associated with income inequality across provinces. As such, reducing differences in government spending on education across provinces and across districts within provinces is an effective mechanism for reducing income inequality across provinces and across districts within provinces in Vietnam.

中文翻译:

政府的教育支出是否会影响越南的省级收入不平等?

本研究旨在检验越南 63 个省份的政府教育支出对收入不平等的影响。广义矩(GMM)回归技术用于解决模型中由收入不平等和政府教育支出不平等引起的潜在内生性。收入不平等由基尼系数和泰尔指数代表。越南政府教育支出的不平等是使用一种新颖的熵方法估算的,该方法将不平等分解为两个部分:“省内”不平等和“省间”不平等。使用 2010 年至 2016 年期间的数据。我们的实证研究结果总结如下。首先,“省内”不平等占政府教育支出不平等的很大一部分。这意味着,尽管越南中央政府在63个省的教育支出分配方面做得很好,但省内各区之间的教育支出存在不平等现象。其次,政府教育支出的总不平等及其两个组成部分都与各省的收入不平等呈正相关。因此,减少政府在各省和省内地区间教育支出的差异是减少越南各省间和省内地区间收入不平等的有效机制。政府教育支出的总不平等及其两个组成部分与各省的收入不平等呈正相关。因此,减少政府在各省和省内地区间教育支出的差异是减少越南各省间和省内地区间收入不平等的有效机制。政府教育支出的总不平等及其两个组成部分与各省的收入不平等呈正相关。因此,减少政府在各省和省内地区间教育支出的差异是减少越南各省间和省内地区间收入不平等的有效机制。
更新日期:2020-10-29
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