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Public-Private Sector Wage Differentials for Males and Females in Vietnam

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Author Info
Nguyen Danh, Hoang Long
Abstract

This study examines public administration-private wage differentials and SOEs-private wage differentials for males and females. Based on data from Vietnam Living Standards Survey in 2002 (VLSS 2002), wage equations with and without selectivity correction are estimated by sector of employment for males and females. From these results, the study compares the wage structure by sector of work for males and females. Oaxaca-Blinder decomposition of the public administration-private sector wage differentials and the State-Owned Enterprises (SOEs)-private sector wage differentials are carried out. Results, which are controlled for observed characteristics and selection bias, indicate some main points. For men, public workers are paid lower than private workers. For women, public administration wages are lower than private wages. However, SOE wages are higher than private wages for women. The wage differential is mostly due to the differential in characteristics in which public workers have richer characteristics than private workers. In these worker characteristics, education is the most important element accounting for wage differentials. Besides, there are differences in returns to characteristics by sector of work for men and for women. Furthermore, the total unexplained differential has a large contribution of the wage differential in the constant term of public administration vs. private sector and SOE vs. private sector for men and women.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 6583.

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Date of creation: 2006
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Handle: RePEc:pra:mprapa:6583

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Find related papers by JEL classification:
J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
J7 - Labor and Demographic Economics - - Labor Discrimination

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  1. Amy Y.C. Liu, 2001. "Are women still holding up half of heaven in Vietnam? The gender wage gap," Development Economics Working Papers 593, East Asian Bureau of Economic Research. [Downloadable!]
    Other versions:
  2. Glinskaya, Elena & Lokshin, Michael, 2005. "Wage differentials between the public and private sector in India," Policy Research Working Paper Series 3574, The World Bank. [Downloadable!]
  3. Lassibille, Gerard, 1998. "Wage Gaps Between the Public and Private Sectors in Spain," Economics of Education Review, Elsevier, vol. 17(1), pages 83-92, February. [Downloadable!] (restricted)
  4. Terrell, Katherine, 1993. "Public-private wage differentials in Haiti Do public servants earn a rent?," Journal of Development Economics, Elsevier, vol. 42(2), pages 293-314, December. [Downloadable!] (restricted)
  5. Hill, M Anne, 1983. "Female Labor Force Participation in Developing and Developed Countries-Consideration of the Informal Sector," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 459-68, August. [Downloadable!] (restricted)
  6. Tansel, Aysit, 2004. "Public-Private Employment Choice, Wage Differentials and Gender in Turkey," IZA Discussion Papers 1262, Institute for the Study of Labor (IZA). [Downloadable!]
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  7. Lokshin, Michael M. & Jovanovic, Branko, 2003. "Wage differentials and state-private sector employment choice in the Federal Republic of Yugoslavia," Policy Research Working Paper Series 2959, The World Bank. [Downloadable!]
  8. Dougherty, Christopher R. S. & Jimenez, Emmanuel, 1991. "The specification of earnings functions: Tests and implications," Economics of Education Review, Elsevier, vol. 10(2), pages 85-98, June. [Downloadable!] (restricted)
  9. Falaris, Evangelos M., 2004. "Private and public sector wages in Bulgaria," Journal of Comparative Economics, Elsevier, vol. 32(1), pages 56-72, March. [Downloadable!] (restricted)
  10. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-43, May. [Downloadable!] (restricted)
  11. Rama, Martin, 2001. "The gender implications of public sector downsizing : the reform program of Vietnam," Policy Research Working Paper Series 2573, The World Bank. [Downloadable!]
  12. Miller, Paul W., 1994. "Effects on earnings of the removal of direct discrimination in minimum wage rates: A validation of the Blinder decomposition," Labour Economics, Elsevier, vol. 1(3-4), pages 347-363, September. [Downloadable!] (restricted)
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  13. Morley Gunderson, 1979. "Earnings Differentials between the Public and Private Sectors," Canadian Journal of Economics, Canadian Economics Association, vol. 12(2), pages 228-42, May. [Downloadable!] (restricted)
  14. Reimers, Cordelia W, 1983. "Labor Market Discrimination against Hispanic and Black Men," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 570-79, November. [Downloadable!] (restricted)
  15. Moock, Peter R. & Patrinos, Harry Anthony & Venkataraman, Meera, 2003. "Education and earnings in a transition economy: the case of Vietnam," Economics of Education Review, Elsevier, vol. 22(5), pages 503-510, October. [Downloadable!] (restricted)
  16. Heitmueller, Axel, 2004. "Public-Private Sector Wage Differentials in Scotland: An Endogenous Switching Model," IZA Discussion Papers 992, Institute for the Study of Labor (IZA). [Downloadable!]
  17. Adamchik, Vera A. & Bedi, Arjun S., 2000. "Wage differentials between the public and the private sectors: evidence from an economy in transition," Labour Economics, Elsevier, vol. 7(2), pages 203-224, March. [Downloadable!] (restricted)
  18. Appleton, Simon & Hoddinott, John & Krishnan, Pramila, 1999. "The Gender Wage Gap in Three African Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 47(2), pages 289-312, January.
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