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Role of Individual Characteristics and Policies in Driving Labor Informality in Vietnam

Author

Listed:
  • Ms. Era Dabla-Norris
  • Mr. Giovanni Ganelli
  • Anh Thi Ngoc Nguyen

Abstract

Using data from the Vietnam Labor Force Survey, this paper takes a granular look at the most salient drivers of labor informality in Vietnam by examining: (i) the nature of labor informality and transitions from formal to informal employment status and the role of worker characteristics; (ii) the empirical likelihood of being in informal employment and the policy determinants of informality using within-in country variation in the business climate and governance; and (iii) whether different policy reforms have a differential impact on workers. Our analysis sheds light on how individual characteristics and policy impediments contribute to high levels of informality and points to the need for a comprehensive agenda to tackle informality.

Suggested Citation

  • Ms. Era Dabla-Norris & Mr. Giovanni Ganelli & Anh Thi Ngoc Nguyen, 2020. "Role of Individual Characteristics and Policies in Driving Labor Informality in Vietnam," IMF Working Papers 2020/273, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2020/273
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    Keywords

    informality; Vietnam; Labor Force Survey; labor market segmentation; structural reforms; economic governance; PCI.; WP; wage worker; wage premium; FDI firm; wage employment; earnings gap; work experience;
    All these keywords.

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