IDEAS home Printed from https://ideas.repec.org/p/nan/wpaper/1006.html

After the Reforms: Determinants of Wage Growth and Change in Wage Inequality in Vietnam - 1998 -2008

Author

Listed:
  • FANG Zheng

    (Division of Economics, Nanyang Technological University, Singapore, 639798)

  • Chris SAKELLARIOU

    (Division of Economics, Nanyang Technological University, Singapore, 639798)

Abstract

The Vietnam “renovation” reforms were implemented during the 1990s, but their full effect was only felt several years later. We present evidence on the developments in real wage growth and inequality in Vietnam from 1998 to 2008. Wage growth was underpinned by changes in the wage structure (mainly associated with experience group) and residual changes. Growth in productive characteristics (mainly education) contributed to wage growth only at higher points of the wage distribution. Conventional measures of inequality as well as a decomposition of the Gini coefficient show that wage inequality decreased sharply through the 1990s until 2006, but levelled-off subsequently. The main contributors to changing inequality were again education (through the composition effect) and over-time changes in the return to experience. The paper also discusses the possible effects of minimum wage policies on wage inequality in Vietnam.

Suggested Citation

  • FANG Zheng & Chris SAKELLARIOU, 2010. "After the Reforms: Determinants of Wage Growth and Change in Wage Inequality in Vietnam - 1998 -2008," Economic Growth Centre Working Paper Series 1006, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    • Handle: RePEc:nan:wpaper:1006
    as

    Download full text from publisher

    File URL: https://web.hss.ntu.edu.sg/egc/wp/2010/2010-06(revised17Jan11).pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

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


    Cited by:

    1. 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.
    2. Doan, Tinh & Ha, Van & Tran, Tuyen & Yang, Judy, 2023. "Dynamics of wage inequality over the prolonged economic transformation: The case of Vietnam," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 816-834.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:nan:wpaper:1006. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Magdalene Lim (email available below). General contact details of provider: https://edirc.repec.org/data/dentusg.html .

    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.