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Firm Exporting and Employee Benefits: First Evidence from Vietnam Manufacturing SMEs

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Author Info

  • Huong Vu

    ()
    (University of Waikato)

  • Steven Lim

    ()
    (University of Waikato)

  • Mark Holmes

    ()
    (University of Waikato)

  • Tinh Doan

    ()
    (Ministry of Business, Innovation & Employment)

Abstract

This study examines linkages between the export participation of firms and employee benefits in terms of wages and employment quality. Based on a uniquely matched firm-worker panel dataset for 2007 and 2009, we find evidence that export participation by firms in Vietnam has a positive impact on wages when taking into account firm characteristics alone. However, the exporter wage premium falls when both firm and worker characteristics are controlled for, and it decreases further when controlling for time-invariant unobservable factors by spell fixed effect estimation. While there are many studies on the export wage premium, the role of export participation on the quality of employment remains largely unexplored. By using a firm-level balanced panel dataset for the same period, our results suggest that export participation has a negative effect on employment quality. Nevertheless, the impact of export participation on both wages and employment quality vary greatly with respect to levels of technology.

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File URL: ftp://mngt.waikato.ac.nz/RePEc/wai/econwp/1212.pdf
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Bibliographic Info

Paper provided by University of Waikato, Department of Economics in its series Working Papers in Economics with number 12/12.

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Length: 19 pages
Date of creation: 01 Nov 2012
Date of revision:
Handle: RePEc:wai:econwp:12/12

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Keywords: exporting; wages; employment; Vietnam;

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References

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  1. Greenaway, David & Hine, Robert C. & Wright, Peter, 1999. "An empirical assessment of the impact of trade on employment in the United Kingdom," European Journal of Political Economy, Elsevier, vol. 15(3), pages 485-500, September.
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Cited by:
  1. Cebeci, Tolga, 2014. "Impact of export destinations on firm performance," Policy Research Working Paper Series 6743, The World Bank.
  2. Huong Vu & Steven Lim, 2013. "Exports and Firm survival: The first evidence from Vietnam private manufacturing SMEs," Economics Bulletin, AccessEcon, vol. 33(2), pages 1259-1268.

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