After the Reforms: Determinants of Wage Growth and Change in Wage Inequality in Vietnam - 1998 -2008
AbstractThe Vietnam “renovation” reforms were implemented during the 1990s, but their full effect was only felt several years later. We present evidence on the developments in real wage growth and inequality in Vietnam from 1998 to 2008. Wage growth was underpinned by changes in the wage structure (mainly associated with experience group) and residual changes. Growth in productive characteristics (mainly education) contributed to wage growth only at higher points of the wage distribution. Conventional measures of inequality as well as a decomposition of the Gini coefficient show that wage inequality decreased sharply through the 1990s until 2006, but levelled-off subsequently. The main contributors to changing inequality were again education (through the composition effect) and over-time changes in the return to experience. The paper also discusses the possible effects of minimum wage policies on wage inequality in Vietnam.
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Bibliographic InfoPaper provided by Nanyang Technolgical University, School of Humanities and Social Sciences, Economic Growth centre in its series Economic Growth centre Working Paper Series with number 1006.
Length: 32 pages
Date of creation: Jun 2010
Date of revision:
Wage inequality; unconditional quantile regression; Asia; Vietnam;
Other versions of this item:
- Sakellariou, Chris & Fang, Zheng, 2010. "After the reforms: Determinants of wage growth and change in wage inequality in Vietnam: 1998-2008," MPRA Paper 27518, University Library of Munich, Germany.
- D33 - Microeconomics - - Distribution - - - Factor Income Distribution
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-01-16 (All new papers)
- NEP-DEV-2011-01-16 (Development)
- NEP-LAB-2011-01-16 (Labour Economics)
- NEP-SEA-2011-01-16 (South East Asia)
- NEP-TRA-2011-01-16 (Transition Economics)
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