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Provincial Competitiveness And Labour Market Returns In Vietnam

Author

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  • DOAN, TINH
  • TRAN, TUYEN QUANG
  • NGUYEN, HIEN

Abstract

This paper examines the relationship between the quality of provincial governance and labour market returns in Vietnam. We find that better provincial governance has a positive effect on labour market wages for wage-earning workers. The finding is consistent across estimators, even after controlling for worker characteristics, geographic regions, urban context, economic sector and industry type. A better competitive environment for business attracts more firms to enter the market, which in turn creates greater demand for labour. Subsequently, higher demand for labour pushes up wages. Our unique contribution is that we considered the influence of provincial governance on the business environment and labour market returns.

Suggested Citation

  • Doan, Tinh & Tran, Tuyen Quang & Nguyen, Hien, 2018. "Provincial Competitiveness And Labour Market Returns In Vietnam," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 59(2), pages 95-112, December.
    • Handle: RePEc:hit:hitjec:v:59:y:2018:i:2:p:95-112
    DOI: 10.15057/29714
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    Cited by:

    1. Tran, Tuyen Quang & Van Vu, Huong, 2020. "Wage earning differentials by field of study: Evidence from Vietnamese university graduates," International Journal of Educational Development, Elsevier, vol. 78(C).
    2. Ho Dan Doan, Tam & Thai Thuong Le, Quan & Nguyen, Quyen Le Hoang Thuy To & Nguyen, Phong Thanh & Thi Ngoc Dang, The, 2022. "Integrating of PLS-SEM and the Importance Performance Matrix Analysis to Exploring the Role of Provincial Competitiveness Index to Growth," MPRA Paper 116830, University Library of Munich, Germany, revised Jul 2022.

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    More about this item

    Keywords

    economic transition; institutional competitiveness; labour market returns;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • L19 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Other
    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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