IDEAS home Printed from https://ideas.repec.org/a/tpr/asiaec/v16y2017i2p28-45.html
   My bibliography  Save this article

Globalization and School–Work Choices in an Emerging Economy: Vietnam

Author

Listed:
  • Ian Coxhead

    (Department of Agricultural and Applied Economics University of Wisconsin–Madison)

  • Rashesh Shrestha

    (Arndt-Corden Department of Economics The Australian National University)

Abstract

We examine the effect of increased industrial jobs on educational attainment in Vietnam, where WTO accession stimulated a massive increase in foreign direct investment. District-level intensity of jobs in foreign-invested firms is negatively associated with propensity to be in school for all urban teenagers and for rural females. High dropout rates are due in part to access to labor markets offering almost no premium for high school learning. The decision to join the workforce before completing high school will likely have long-term implications for individuals and for aggregate growth because global competitiveness depends on sustained increases in labor productivity.

Suggested Citation

  • Ian Coxhead & Rashesh Shrestha, 2017. "Globalization and School–Work Choices in an Emerging Economy: Vietnam," Asian Economic Papers, MIT Press, vol. 16(2), pages 28-45, Summer.
    • Handle: RePEc:tpr:asiaec:v:16:y:2017:i:2:p:28-45
    as

    Download full text from publisher

    File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/ASEP_a_00515
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Harris, Richard G. & Robertson, Peter E., 2013. "Trade, wages and skill accumulation in the emerging giants," Journal of International Economics, Elsevier, vol. 89(2), pages 407-421.
    2. Findlay, Ronald & Kierzkowski, Henryk, 1983. "International Trade and Human Capital: A Simple General Equilibrium Model," Journal of Political Economy, University of Chicago Press, vol. 91(6), pages 957-978, December.
    3. Sarah Baird & Francisco H. G. Ferreira & Berk Özler & Michael Woolcock, 2013. "Relative Effectiveness of Conditional and Unconditional Cash Transfers for Schooling Outcomes in Developing Countries: A Systematic Review," Campbell Systematic Reviews, John Wiley & Sons, vol. 9(1), pages 1-124.
    4. Phan, Diep & Coxhead, Ian, 2013. "Long-run costs of piecemeal reform: Wage inequality and returns to education in Vietnam," Journal of Comparative Economics, Elsevier, vol. 41(4), pages 1106-1122.
    5. Fafchamps, Marcel & Wahba, Jackline, 2006. "Child labor, urban proximity, and household composition," Journal of Development Economics, Elsevier, vol. 79(2), pages 374-397, April.
    6. Eric V. Edmonds, 2005. "Does Child Labor Decline with Improving Economic Status?," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
    7. Eichengreen, Barry & Park, Donghyun & Shin, Kwanho, 2014. "Growth slowdowns redux," Japan and the World Economy, Elsevier, vol. 32(C), pages 65-84.
    8. David Atkin, 2016. "Endogenous Skill Acquisition and Export Manufacturing in Mexico," American Economic Review, American Economic Association, vol. 106(8), pages 2046-2085, August.
    9. Linxiu Zhang & Hongmei Yi & Renfu Luo & Changfang Liu & Scott Rozelle, 2013. "The human capital roots of the middle income trap: the case of China," Agricultural Economics, International Association of Agricultural Economists, vol. 44(s1), pages 151-162, November.
    10. Anne Case & Christina Paxson, 2008. "Stature and Status: Height, Ability, and Labor Market Outcomes," Journal of Political Economy, University of Chicago Press, vol. 116(3), pages 499-532, June.
    11. Barry Eichengreen & Donghyun Park & Kwanho Shin, 2013. "Growth Slowdowns Redux: New Evidence on the Middle-Income Trap," NBER Working Papers 18673, National Bureau of Economic Research, Inc.
    12. Janet Currie, 2009. "Healthy, Wealthy, and Wise: Socioeconomic Status, Poor Health in Childhood, and Human Capital Development," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 87-122, March.
    13. repec:pri:indrel:case_paxson_stature_status_8312006.pdf is not listed on IDEAS
    14. Coxhead, Ian & Vu, Linh & Nguyen, Cuong, 2016. "Migration in Vietnam: New Evidence from Recent Surveys," MPRA Paper 70217, University Library of Munich, Germany.
    15. Almond, Douglas & Currie, Janet, 2011. "Human Capital Development before Age Five," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 15, pages 1315-1486, Elsevier.
    16. Filiz Garip, 2012. "An Integrated Analysis of Migration and Remittances: Modeling Migration as a Mechanism for Selection," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 31(5), pages 637-663, October.
    17. Ian Coxhead & Diep Phan, 2013. "Princelings and Paupers? State Employment and the Distribution of Human Capital Investments Among Households in Viet Nam," Asian Development Review, MIT Press, vol. 30(2), pages 26-48, September.
    18. Federman Maya & Levine David I., 2005. "The Effects of Industrialization on Education and Youth Labor in Indonesia," The B.E. Journal of Macroeconomics, De Gruyter, vol. 5(1), pages 1-34, February.
    19. repec:pri:cheawb:case_paxson_stature_status_8312006.pdf is not listed on IDEAS
    20. repec:pri:cheawb:case_paxson_stature_status_8312006 is not listed on IDEAS
    21. repec:pri:indrel:case_paxson_stature_status_8312006 is not listed on IDEAS
    22. Robert Jensen, 2010. "The (Perceived) Returns to Education and the Demand for Schooling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(2), pages 515-548.
    23. Zvi Eckstein & Kenneth I. Wolpin, 1999. "Why Youths Drop Out of High School: The Impact of Preferences, Opportunities, and Abilities," Econometrica, Econometric Society, vol. 67(6), pages 1295-1340, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Thanos Mergoupis & Van Phan & John G. Sessions, 2018. "Puzzle me this?: The Vietnamese reverse gender education gap," WIDER Working Paper Series wp-2018-116, World Institute for Development Economic Research (UNU-WIDER).
    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. Coxhead, Ian & Vu, Linh & Nguyen, Cuong, 2016. "Migration in Vietnam: New Evidence from Recent Surveys," MPRA Paper 70217, University Library of Munich, Germany.
    4. Thanos Mergoupis & Van Phan & John Sessions, 2018. "Puzzle me this?: The Vietnamese reverse gender education gap," WIDER Working Paper Series 116, World Institute for Development Economic Research (UNU-WIDER).
    5. Kitayaporn,Varan & Coxhead,Ian, 2024. "China's New Growth Strategy: Implications for Middle-Income Economies," IDE Discussion Papers 940, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    6. 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.
    7. Ian Coxhead & Nguyen Dinh Tuan Vuong, 2023. "Does the Skill Premium Influence Educational Decisions? Evidence from Viet Nam," Working Papers DP-2023-03, Economic Research Institute for ASEAN and East Asia (ERIA).
    8. Xin Wang, 2022. "Multinational firms and human capital investment: A dynamic knowledge‐capital model," The World Economy, Wiley Blackwell, vol. 45(5), pages 1564-1586, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Janet Currie & Tom Vogl, 2013. "Early-Life Health and Adult Circumstance in Developing Countries," Annual Review of Economics, Annual Reviews, vol. 5(1), pages 1-36, May.
    2. Spears, Dean, 2012. "Height and cognitive achievement among Indian children," Economics & Human Biology, Elsevier, vol. 10(2), pages 210-219.
    3. Lindquist, Matthew J. & Santavirta, Torsten, 2014. "Does placing children in foster care increase their adult criminality?," Labour Economics, Elsevier, vol. 31(C), pages 72-83.
    4. Ian Coxhead & Rashesh Shrestha, 2016. "Could a Resource Export Boom Reduce Workers’ Earnings? The Labour-Market Channel in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 52(2), pages 185-208, May.
    5. Heath, Rachel & Mushfiq Mobarak, A., 2015. "Manufacturing growth and the lives of Bangladeshi women," Journal of Development Economics, Elsevier, vol. 115(C), pages 1-15.
    6. Bladimir Carrillo, 2020. "Present Bias and Underinvestment in Education? Long-Run Effects of Childhood Exposure to Booms in Colombia," Journal of Labor Economics, University of Chicago Press, vol. 38(4), pages 1127-1265.
    7. Orgill-Meyer, Jennifer & Pattanayak, Subhrendu K., 2020. "Improved sanitation increases long-term cognitive test scores," World Development, Elsevier, vol. 132(C).
    8. Ida Lovén & Katarina Steen Carlsson, 2017. "Early Onset of Type 1 Diabetes and Educational Field at Upper Secondary and University Level: Is Own Experience an Asset for a Health Care Career?," IJERPH, MDPI, vol. 14(7), pages 1-23, June.
    9. Chen, Qihui, 2021. "Population policy, family size and child malnutrition in Vietnam – Testing the trade-off between child quantity and quality from a child nutrition perspective," Economics & Human Biology, Elsevier, vol. 41(C).
    10. Jósef Sigurdsson, 2023. "Transitory Earnings Opportunities and Educational Scarring of Men," CESifo Working Paper Series 10361, CESifo.
    11. Ian Coxhead & Nguyen Dinh Tuan Vuong, 2023. "Does the Skill Premium Influence Educational Decisions? Evidence from Viet Nam," Working Papers DP-2023-03, Economic Research Institute for ASEAN and East Asia (ERIA).
    12. Xin Wang, 2022. "Multinational firms and human capital investment: A dynamic knowledge‐capital model," The World Economy, Wiley Blackwell, vol. 45(5), pages 1564-1586, May.
    13. Eide, Eric R. & Showalter, Mark H., 2011. "Estimating the relation between health and education: What do we know and what do we need to know?," Economics of Education Review, Elsevier, vol. 30(5), pages 778-791, October.
    14. 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.
    15. 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.
    16. Petter Lundborg; & Carl Hampus Lyttkens; & Paul Nystedt;, 2012. "Human capital and longevity. Evidence from 50,000 twins," Health, Econometrics and Data Group (HEDG) Working Papers 12/19, HEDG, c/o Department of Economics, University of York.
    17. Ian Coxhead & Diep Phan, 2013. "Princelings and Paupers? State Employment and the Distribution of Human Capital Investments Among Households in Viet Nam," Asian Development Review, MIT Press, vol. 30(2), pages 26-48, September.
    18. Fitzsimons, Emla & Malde, Bansi & Mesnard, Alice & Vera-Hernández, Marcos, 2016. "Nutrition, information and household behavior: Experimental evidence from Malawi," Journal of Development Economics, Elsevier, vol. 122(C), pages 113-126.
    19. Settele, Sonja & Ewijk, Reyn van, 2018. "Can cigarette taxes during pregnancy mitigate the intergenerational transmission of socioeconomic status?," Labour Economics, Elsevier, vol. 55(C), pages 130-148.
    20. Li, Bingjing, 2018. "Export expansion, skill acquisition and industry specialization: evidence from china," Journal of International Economics, Elsevier, vol. 114(C), pages 346-361.

    More about this item

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • G00 - Financial Economics - - General - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tpr:asiaec:v:16:y:2017:i:2:p:28-45. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: The MIT Press (email available below). General contact details of provider: https://direct.mit.edu/journals .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.