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Wage differentials between foreign invested and domestic enterprises in the manufacturing

Author

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  • Kien Trung Nguyen

Abstract

Purpose - – The purpose of this paper is to examine the impact of trade and investment liberalization on the wage skill premium between skilled and unskilled workers in Vietnam. Design/methodology/approach - – An analysis is undertaken by means of descriptive statistics and econometric investigation using a firm-level data set from the Enterprise Survey of Vietnam. Findings - – It is shown that there has been a positive wage differential between foreign-invested enterprises (FIEs) and domestic enterprises over the period 2000-2009. More importantly, the FIE-domestic wage differentials are found to be significantly positive after accounting for differences in capital intensity, size, firm location, and industry features. Furthermore, statistical evidence shows that these wage differentials narrowed over the period 2006-2009. Originality/value - – One of the first study examines the FIE-domestic wage differentials given the outward-oriented economic reforms since 2000 in Vietnam.

Suggested Citation

  • Kien Trung Nguyen, 2015. "Wage differentials between foreign invested and domestic enterprises in the manufacturing," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 42(6), pages 1056-1077, November.
    • Handle: RePEc:eme:jespps:v:42:y:2015:i:6:p:1056-1077
    DOI: 10.1108/JES-05-2014-0075
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    Cited by:

    1. Zhizhong Liu & Guangyue Liu & Xu Han & Yingna Chen, 2022. "Green Technology of Foreign Direct Investment on Public Health: Evidence from China," Sustainability, MDPI, vol. 14(20), pages 1-16, October.
    2. Ramstetter, Eric D., 2016. "Multinational Enterprise Growth and Vietnam's Employment and Wages in Manufacturing and Trade Industries: Did Takeovers Play a Role?," AGI Working Paper Series 2016-05, Asian Growth Research Institute.
    3. Ramstetter, Eric D., 2017. "How important are SOEs and MNEs in Vietnam’s economy?," AGI Working Paper Series 2017-09, Asian Growth Research Institute.
    4. Anh Ngoc Nguyen & Nguyen Thi Tuong Anh & Nguyen Ngoc Minh & Nguyen Thi Phuong Mai, 2018. "SOUTH KOREAN MULTINATIONAL ENTERPRISES AND VIETNAM SMEs’ PARTICIPATION IN GLOBAL PRODUCTION NETWORKS IN THE CONTEXT OF INCREASED ASEAN AND EAST ASIAN REGIONAL ECONOMIC INTEGRATION," Working Papers 03, Development and Policies Research Center (DEPOCEN), Vietnam.

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