The influence of contextual and household factors on multidimensional poverty in rural Vietnam: A multilevel regression analysis

Using a multilevel regression modeling technique, this paper examines the influence of contextual and household factors on multidimensional poverty in rural Vietnam. We find that unobservable characteristics at the province, district and commune levels account for about 28% and 25%, respectively, of the variation in multidimensional and income poverty risk. In addition, the study shows that several micro-factors, such as ethnicity, better education, social capital, nonfarm activities and public employment, play a key role in reducing both the likelihood of falling into poverty and the number of dimensions of deprivation. The risk of poverty is higher for households in remote communes and lower for those in communes with access to transportation and nonfarm jobs. At the macro-level, it was found that living in provinces with a higher level of economic development , greater population density, and more international integration increases the chances of households to escape both multidimensional and income poverty. • Using a multilevel regression modeling technique, this paper examines the influence of contextual and household factors on multidimensional poverty in rural Vietnam. • We find that poverty rates and the contribution of each dimension to multidimensional poverty varies greatly according to region. • Notably, our regression results reveal that unobservable characteristics at the province, district and commune levels account for about 28% and 25%, respectively, of the variation in multidimensional and income poverty risk. • Several micro-factors, such as ethnicity, better education, social capital, nonfarm activities and public employment, play a key role in reducing both the likelihood of falling into poverty and the number of dimensions of deprivation. The risk of poverty is higher for households in remote communes and lower for those in communes with access to transportation and nonfarm jobs. • At the macro-level, it was found that living in provinces with a higher level of economic development, greater population density, and more international integration increases the chances of households to escape both multidimensional and income poverty.