Two Decades of Declining Poverty but Rising Inequality in Laos

Abstract

Over the past two decades consumption inequality has risen within Laos, while absolute poverty incidence has halved. The estimated Gini coefficient of private household expenditures per person rose from 0.311 to 0.364. This increase in the sample-based estimate of inequality was statistically significant and occurred in all regions, in both rural and urban areas and among all major ethnic, educational and sectoral employment categories. Within-group increases in inequality dominated between-group changes. Official policy largely overlooks this point, focusing on reducing inequality between rather than within major groups. Economic inequality seems certain to become a more pressing policy concern