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Ethnic wage inequality in Vietnam

Author

Listed:
  • Hung T. Pham
  • Barry Reilly

Abstract

Purpose - This paper seeks to complement earlier studies on ethnic minority underdevelopment in Vietnam by empirically examining the ethnic wage gap for the wage employed in the Vietnamese labour market, using data from a large‐scale household survey conducted in 2002. Design/methodology/approach - The paper uses the “index number” decomposition method suggested by Oaxaca to decompose the ethnic wage gap into treatment and endowment effects at both the mean and selected quantiles of the conditional wage distribution. Findings - The results confirm the existence of an ethnic wage gap in the labour market, though the gap is found to be substantially narrower than the ethnic gap detected using household living standard measures for Vietnam. Decomposition results reveal that the ethnic wage gap is largely attributable to differentials in the returns to endowments, a finding invariant whether the mean or selected quantiles of the conditional wage distribution are examined. Research limitations/implications - In the absence of feasible alternatives, the paper uses anad hocprocedure to correct for selectivity into wage employment for the quantile regression models. In addition, due to data constraints with regard to earnings, the paper does not examine the ethnic wage gap for the self‐employed. Originality/value - The paper is the first to analyse the ethnic wage gap in the Vietnam labour market and one of the few to examine ethnic pay differentials at selected points of the conditional wage distribution using quantile regression analysis.

Suggested Citation

  • Hung T. Pham & Barry Reilly, 2009. "Ethnic wage inequality in Vietnam," International Journal of Manpower, Emerald Group Publishing Limited, vol. 30(3), pages 192-219, June.
    • Handle: RePEc:eme:ijmpps:v:30:y:2009:i:3:p:192-219
    DOI: 10.1108/01437720910956727
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    Citations

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    Cited by:

    1. Oostendorp, Remco H. & Doan, Quang Hong, 2013. "Have the returns to education really increased in Vietnam? Wage versus employment effect," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 923-938.
    2. Diep Phan & Ian Coxhead, 2020. "Persistent Privilege? Institutional Education Gaps during Vietnam's Economic Boom," The Developing Economies, Institute of Developing Economies, vol. 58(4), pages 332-359, December.
    3. Saurabh Singhal & Ulrik Beck, 2015. "Ethnic disadvantage in Vietnam: Evidence using panel data," WIDER Working Paper Series 097, World Institute for Development Economic Research (UNU-WIDER).
    4. Ayaita, Adam, 2023. "Is There an Ethnic Pay Gap in Germany? Evidence from a Representative Sample of the Adult Population," EconStor Preprints 267865, ZBW - Leibniz Information Centre for Economics.
    5. Pham Thai, Hung & Le Dang, Trung & Nguyen Viet, Cuong, 2010. "Poverty of the Ethnic Minorities in Vietnam: Situation and Challenges from the Poorest Communes," MPRA Paper 50372, University Library of Munich, Germany.
    6. Nguyen Viet, Cuong, 2012. "Ethnic Minorities in Northern Mountains of Vietnam: Poverty, Income and Assets," MPRA Paper 40769, University Library of Munich, Germany.
    7. Castro Campos, Bente & Ren, Yanjun & Petrick, Martin, 2016. "The impact of education on income inequality between ethnic minorities and Han in China," China Economic Review, Elsevier, vol. 41(C), pages 253-267.
    8. Fukase, Emiko, 2013. "Foreign job opportunities and internal migration in Vietnam," Policy Research Working Paper Series 6420, The World Bank.
    9. Saurabh Singhal & Ulrik Beck, 2015. "Ethnic disadvantage in Vietnam: Evidence using panel data," WIDER Working Paper Series wp-2015-097, World Institute for Development Economic Research (UNU-WIDER).
    10. Daeheon Choi & Chune Young Chung & Ha Truong, 2019. "Return on Education in Two Major Vietnamese Cities," Sustainability, MDPI, vol. 11(18), pages 1-30, September.
    11. Diep Phan & Ian Coxhead, 2020. "Persistent Privilege? Institutional Education Gaps during Vietnam's Economic Boom," Working Papers 2020-023, Human Capital and Economic Opportunity Working Group.

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