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Gthe Impact Of Technological Innovation On Labor Structure: Evidence From Vietnam Smes

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  • Dam Duc Le

    (Foreign Trade University)

Abstract

To examine the technological innovation and labor structure nexus at micro level in Vietnam, this paper depends on a comprehensive dataset retrieved from the Vietnam SME Survey (VSMES) between 2005 and 2015. After accounting for endogeneity and firm heterogeneity, this study finds that technological innovation exhibits significantly positive impact on total labor of Vietnam’s SMEs. Moreover, technological innovation adoption is associated with higher rate of skilled labor while lowering the rate of unskilled labor in firms. The same results are discovered for manufacturing firms; however, the employment effect of technological innovation seems only significant in low-technology sectors with currency misalignment.

Suggested Citation

  • Dam Duc Le, 2023. "Gthe Impact Of Technological Innovation On Labor Structure: Evidence From Vietnam Smes," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 26(2), pages 251-288, May.
    • Handle: RePEc:idn:journl:v:26:y:2023:i:2c:p:251-288
    DOI: https://doi.org/10.59091/1410-8046.2067
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    More about this item

    Keywords

    Technological innovation; Labor structure; Skills composition; SMEs; Vietnam;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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