The Impact of Trade Liberalization on the Return to Education in Vietnam: Wage versus Employment Effect
AbstractSeveral studies have identified the impact of trade liberalization in developing countries on the return to education within a Mincerian framework through a difference-in-difference estimator or with industry-level measures of trade openness. These studies have typically estimated the return to education in terms of changes in wages rather than employment, effectively ignoring the fact that trade liberalization affects not only wages but also employment opportunities. In this paper we use four large-scale representative household surveys from Vietnam for the period 1998-2006 to estimate the impact of trade liberalization on the return to education taking into account both changes in wages and employment. The results show that the impact was large in Vietnam but is severely underestimated if changes in employment opportunities are ignored.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 11-060/3.
Date of creation: 28 Mar 2011
Date of revision: 04 Apr 2011
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Web page: http://www.tinbergen.nl
trade liberalization; return to education; employment; Vietnam;
Find related papers by JEL classification:
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-04-16 (All new papers)
- NEP-EDU-2011-04-16 (Education)
- NEP-INT-2011-04-16 (International Trade)
- NEP-LAB-2011-04-16 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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