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Changing wage structure and education in Vietnam, 1992–98

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  • Amy Y. C. Liu

Abstract

This paper examines the changes in relative earnings of workers with different education levels in Vietnam. Using a simple demand‐and‐supply framework developed by Katz and Murphy (1992), it was found that an increase in the relative demand for better‐educated male workers in particular appears to play an important role in explaining the earnings differentials between workers of different education groups. Education reform to better suit the needs of the post‐reform emerging market, on‐the‐job training for workers and equal access to education are some policy options that hold the key to reducing wage inequality between different education groups.

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  • Amy Y. C. Liu, 2006. "Changing wage structure and education in Vietnam, 1992–98," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 14(4), pages 681-706, October.
    • Handle: RePEc:bla:etrans:v:14:y:2006:i:4:p:681-706
    DOI: 10.1111/j.1468-0351.2006.00266.x
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    References listed on IDEAS

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    1. Dougherty, Christopher, 2003. "Why is the rate of return to schooling higher for women than for men?," LSE Research Online Documents on Economics 20034, London School of Economics and Political Science, LSE Library.
    2. Francine D. Blau & Lawrence Kahn, 1995. "The Gender Earnings Gap: Some International Evidence," NBER Chapters, in: Differences and Changes in Wage Structures, pages 105-144, National Bureau of Economic Research, Inc.
    3. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863, Elsevier.
    4. C Dougherty, 2003. "Why is the Rate of Return to Schooling Higher For Women Than For Men?," CEP Discussion Papers dp0581, Centre for Economic Performance, LSE.
    5. Richard B. Freeman & Lawrence F. Katz, 1995. "Differences and Changes in Wage Structures," NBER Books, National Bureau of Economic Research, Inc, number free95-1, May.
    6. Freeman, Richard B. & Katz, Lawrence F. (ed.), 1995. "Differences and Changes in Wage Structures," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226261607, December.
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    Cited by:

    1. Orlowski, Robert & Riphahn, Regina T., 2008. "The East German Wage Structure after Transition," IZA Discussion Papers 3861, Institute of Labor Economics (IZA).
    2. McGuinness, Seamus & Kelly, Elish & Pham Thi Thu, Phuong & Ha Thi Thu, Thuy, 2015. "Returns to Education and the Demand for Labour in Vietnam," Papers WP506, Economic and Social Research Institute (ESRI).
    3. Bulent Esiyok & Mehmet Ugur, 2017. "A Spatial Regression Approach To Fdi In Vietnam: Province-Level Evidence," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(02), pages 459-481, June.
    4. Mohamed Amara & Hatem Jemmali, 2018. "Household and Contextual Indicators of Poverty in Tunisia: A Multilevel Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 137(1), pages 113-138, May.
    5. Christophe J. Nordman & Smriti Sharma, 2018. "Pecuniary returns to working conditions in Vietnam," WIDER Working Paper Series wp-2018-72, World Institute for Development Economic Research (UNU-WIDER).
    6. Dang, Thang, 2015. "Intergenerational mobility of earnings and income among sons and daughters in Vietnam," MPRA Paper 75357, University Library of Munich, Germany.
    7. Robert Orlowski & Regina T. Riphahn, 2009. "The East German wage structure after transition1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 17(4), pages 629-659, October.
    8. Tinh Doan & Quan Le & Tuyen Quang Tran, 2018. "Lost in Transition? Declining Returns to Education in Vietnam," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(2), pages 195-216, April.
    9. Hai-Anh H. Dang & Paul W. Glewwe, 2018. "Well Begun, but Aiming Higher: A Review of Vietnam’s Education Trends in the past 20 Years and Emerging Challenges," Journal of Development Studies, Taylor & Francis Journals, vol. 54(7), pages 1171-1195, July.
    10. Chiara Binelli, 2008. "Returns to Education and Increasing Wage Inequality in Latin America," Working Paper series 30_08, Rimini Centre for Economic Analysis.
    11. McGuinness, Seamus & Kelly, Elish & Pham, Thi Thu Phuong & Ha, Thi Thu Thuy & Whelan, Adele, 2021. "Returns to education in Vietnam: A changing landscape," World Development, Elsevier, vol. 138(C).

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