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Discrimination against Migrants in Urban Vietnam

Author

Listed:
  • Jonathan Haughton

    (Suffolk University)

  • Wendi Sun

    (Rockland Trust)

  • Le Thi Thanh Loan

    (Open University of Ho Chi Minh City)

Abstract

In 2009, migrant workers in the two major cities of Vietnam, Hanoi and Ho Chi Minh City, earned 42% less per hour than did non-migrant (“resident”) workers. We seek to explain this gap using data from a carefully-designed urban poverty survey undertaken in 2009 by the General Statistics Office. We use the method proposed by Brown, Moon, and Zoloth, which first explains how workers sort into different sectors, and then examines wage differentials using a Blinder-Oaxaca style decomposition. About half of the wage gap may be explained by endowments. The system of residential permits (ho khau) may contribute to the difficulties faced by migrants. Our results are broadly similar to, although more stable and plausible than, those found for the major cities in China.

Suggested Citation

  • Jonathan Haughton & Wendi Sun & Le Thi Thanh Loan, 2018. "Discrimination against Migrants in Urban Vietnam," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 24(3), pages 211-232, August.
    • Handle: RePEc:kap:iaecre:v:24:y:2018:i:3:d:10.1007_s11294-018-9688-6
    DOI: 10.1007/s11294-018-9688-6
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    References listed on IDEAS

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    More about this item

    Keywords

    Urban migrants; Wage gap; Blinder-Oaxaca decomposition; Brown et al. decomposition; Vietnam;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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