Abstract
Ethnic minorities have a significantly higher poverty incidence than the majority in Lao PDR. Based on survey data the determinants of minority poverty are analyzed, the sources of inequality decomposed, and the expected impact of polices to address minority poverty estimated. When economic factors are controlled for, ethnicity does not have any significant effect on poverty. Decomposition shows that unequal access to resources and demographic variables largely explain the majority-minority poverty gap. A strategy for alleviating minority poverty in the Lao PDR is suggested: (1) broad policies covering education, infrastructure and agricultural development can address poverty among ethnic minorities; (2) policies should be tailored to the needs of the individual minority groups.