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

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  • 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
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    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. Coxhead, Ian & Vu, Linh & Nguyen, Cuong, 2016. "Migration in Vietnam: New Evidence from Recent Surveys," MPRA Paper 70217, University Library of Munich, Germany.
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    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. 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).
    4. Coxhead, Ian & Vu, Linh & Nguyen, Cuong, 2016. "Migration in Vietnam: New Evidence from Recent Surveys," MPRA Paper 70217, University Library of Munich, Germany.
    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. 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).
    7. 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.

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    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

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