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 many years later. We present evidence on the developments in real wage growth and inequality in Vietnam from 1998 to 2008. For men, wage growth was underpinned by both increases in endowments of productive characteristics (mainly education) as well as changes in the wage structure (mainly associated with experience) and residual changes. For women, the wage structure effect was the main contributor to wage growth and the most important determinant was the change in the pattern of the returns to experience: younger, less experienced workers enjoyed a premium compared to more experience workers, reversing the previous, opposite pattern. Conventional measures of inequality as well as background analysis show that wage inequality decreased sharply through the 1990s until 2006, but increased subsequently. Over the entire 10-year period, wage inequality increased slightly and more so for women.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 27518.
Date of creation: Sep 2010
Date of revision:
Wage inequality; counterfactual decompositions; Asia; Vietnam;
Other versions of this item:
- FANG Zheng & Chris SAKELLARIOU, 2010. "After the Reforms: Determinants of Wage Growth and Change in Wage Inequality in Vietnam - 1998 -2008," Economic Growth centre Working Paper Series 1006, Nanyang Technolgical University, School of Humanities and Social Sciences, Economic Growth centre.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-01-03 (All new papers)
- NEP-DEV-2011-01-03 (Development)
- NEP-LAB-2011-01-03 (Labour Economics)
- NEP-SEA-2011-01-03 (South East Asia)
- NEP-TRA-2011-01-03 (Transition Economics)
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