Educational Attainment, Household Income and Wealth Accumulation in Vietnam

This study examines the effects of educational attainment and household income on wealth accumulation in Vietnam using various Vietnam Household Living Standards Surveys (VHLSSs) in 2008, 2018 and 2020. We use the threshold regression to separate households into different groups depending on their assets. We find that owning a university degree is optimal to maximize wealth accumulation for households in 2008. However, post-graduate qualifications are needed for wealth accumulation in 2018 and 2020. For those household heads without a university degree, owning advanced training certificates provides the best opportunity to accumulate household wealth in all three surveys. Besides, our empirical results confirm that household income played no role in wealth accommodation in 2008. Interestingly, household income positively contributes to wealth accumulation for households with assets above the threshold of VND 634.40 m in 2020. However, the effect is negative for households with assets below the threshold of VND 440.25 m in 2018. We also find that households with widowed or divorced household heads are associated with lower wealth accumulation. Another interesting finding is that living in urban areas reduces wealth accumulation for households whose assets are below VND 440.25 m in 2018. These findings largely remain unchanged when Lewbel’s (Lewbel, Journal of Business and Economic Statistics 30:67–80, 2012) instrument variable estimator is used to ensure the robustness of the empirical results.