Impact of urbanization on people’s income and proposing new livelihood strategies for people in urban areas

Abstract

This study was undertaken to examine the effects of urbanization on the income of people in Vietnam. The research utilized data from a survey of 597 people who were impacted by urbanization in Vietnam. Research methods included: (i) The T-test difference test method, which is a method used to examine the influence of urbanization on people’s income by comparing the income differential between persons in urban regions and those in rural ones; (ii) The least squares method was used to quantify the impact of various factors on the income of people in the study area. The study concludes that people with similar education and job positions earn higher incomes if they live and work in urban areas as opposed to rural ones (the beta coefficient of the variable Place_Edu is 0.806, and the beta coefficient of the variable Place_Posit is 3.309). According to the findings of this study, individuals residing in urban areas generally have higher incomes than those living in rural areas (the beta coefficient of the Place variable is 3.140). According to research findings, urbanization has both positive and negative impacts on people’s income in Vietnam.