Intragenerational and Intergenerational Mobility in Viet Nam

Abstract

This study examines intragenerational and intergenerational mobility of employment and income in Viet Nam during 2004–2008 and 2010–2014. It finds rather high mobility across income quintiles. There was high mobility of individuals by occupational skills but less mobility by employment status and sectors. The upward mobility of occupation increased over time because of the increase in skilled occupation. The intergenerational elasticity of earnings for parents and children is estimated at around 0.36. The intergenerational elasticity is very similar for 2004 and 2014. Education plays an important role in improving intergenerational mobility. The intergenerational elasticity for children without education degrees and those with post-secondary degrees is 0.51 and 0.17, respectively. With a postsecondary degree, 80% of people whose parents are unskilled have skilled or nonmanual occupation.