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How Do Positive and Negative Shocks Jointly Shape Educational and Labor Market Outcomes? The Case of Education Reforms in Vietnam

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  • Wu, Hanbo

Abstract

Current research on education reform has focused chiefly on positive shocks that intend to equalize educational opportunity, while negative shocks that impede school access have rarely been investigated. What would happen to someone exposed simultaneously to both types of shocks? I tackle this question in the context of Vietnam, where a universal primary education reform (a positive shock) and an introduction of tuition fee for secondary education (a negative shock) took place almost at the same time but affected different cohorts. I find that the negative shock decreased individual years of schooling, whereas the positive shock increased it. The beneficial effect of the positive shock outstrips the adverse effect of the negative shock, resulting in an overall improvement in educational attainment for those exposed to both shocks. The favorable joint effect on schooling is more pronounced for socioeconomically disadvantaged rural residents, women, and ethnic minorities. Educational assortative mating, intergenerational persistence of education, and labor market outcomes are also examined in this article.

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  • Wu, Hanbo, 2025. "How Do Positive and Negative Shocks Jointly Shape Educational and Labor Market Outcomes? The Case of Education Reforms in Vietnam," SocArXiv 2km56_v1, Center for Open Science.
    • Handle: RePEc:osf:socarx:2km56_v1
    DOI: 10.31219/osf.io/2km56_v1
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