Application of the copula-based decomposition method to study the income inequality between rural and urban areas in Vietnam

Abstract

The paper user the copula-based decomposition method to study the incomeinequality in rural-urban areas in Vietnam, using 2016 Vietnam Household Living Standard Survey data. Empirical results show that the level of education plays the most important role in explaining income disparities in the two populations. In addition, the results show that the dependenceeffect is negligible in all considered components.