Advanced Search
MyIDEAS: Login to save this paper or follow this series

Measurements and Determinants of Pay Inequality and its Impacts on Firms Performance in Vietnam

Contents:

Author Info

  • Nam Tran-Quy
  • Almas Heshmati

    ()
    (Technology Management, Economics, and Policy Program (TEMEP), Seoul National University)

Abstract

This study is an empirical investigation of causal factors of pay inequality and its relationship with firm performance using firm level data in Vietnam. Both nonparametric and parametric approaches are used for the purpose. The Gini coefficient and Theil-T index are employed to measure pay inequality. Linear and quadratic models are specified to identify determinants of pay inequality and to investigate the relationship between pay inequality and firm performance. The empirical results, based on a large sample of Vietnamese firms, suggest that capital-intensive sectors pay more equal wages than labour-intensive sectors while regions with a higher urbanization rate and economic development pay their employees quite unequally. The determinant factors contributing to pay inequality are firm size, volume of assets, share of temporary workers, debt ratio, provincial competitiveness and the market size. We also find a positive relationship between firm performance and pay inequality, which gives support to the ¡°tournament¡± theory.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: ftp://147.46.237.98/DP-30.pdf
File Function: First version, 2009
Download Restriction: no

Bibliographic Info

Paper provided by Seoul National University; Technology Management, Economics, and Policy Program (TEMEP) in its series TEMEP Discussion Papers with number 200930.

as in new window
Length: 34 pages
Date of creation: Nov 2009
Date of revision: Nov 2009
Handle: RePEc:snv:dp2009:200930

Contact details of provider:
Postal: 599 Gwanak-Ro, Gwanak-Gu, Seoul 151-744
Phone: +82-2-880-8386
Fax: +82-2-873-7229
Email:
Web page: http://temep.snu.ac.kr/
More information through EDIRC

Related research

Keywords: Pay inequality; firms; determinants; performance; Vietnam;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Thi Bich Tran & R. Quentin Grafton & Tom Kompas, 2008. "Institutions Matter : The Case of Vietnam," Development Economics Working Papers 21938, East Asian Bureau of Economic Research.
  2. Michael P. Keane, 1991. "Individual heterogeneity and interindustry wage differentials," Discussion Paper / Institute for Empirical Macroeconomics 54, Federal Reserve Bank of Minneapolis.
  3. Pedro S. Martins, 2008. "Dispersion in Wage Premiums and Firm Performance," Working Papers 8, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
  4. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1989. "Industrialization and the Big Push," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1003-26, October.
  5. Lazear, Edward P & Rosen, Sherwin, 1981. "Rank-Order Tournaments as Optimum Labor Contracts," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 841-64, October.
  6. David Autor & Lawrence Katz & Alan Krueger, 1997. "Computing Inequality: Have Computers Changed the Labor Market?," Working Papers 756, Princeton University, Department of Economics, Industrial Relations Section..
  7. Ehrenberg, Ronald G & Bognanno, Michael L, 1990. "Do Tournaments Have Incentive Effects?," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1307-24, December.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:snv:dp2009:200930. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jorn Altmann).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.