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The impact of trade and investment liberalization on the wage skill premium: evidence from Vietnam


  • Kien Trung Nguyen


This paper examines the impact of trade and investment liberalization on the wage skill premium between skilled and unskilled workers in Vietnamese manufacturing. The result from an econometric analysis using a firm-level dataset reveals the important role of trade liberalization as an impetus for narrowing the skill premium. There is also evidence that foreign investment has a significant effect on widening the wage skill premium. More importantly, export-oriented foreign investment is likely to play an important role in the determination of the wage skill premium in the Vietnamese manufacturing.

Suggested Citation

  • Kien Trung Nguyen, 2014. "The impact of trade and investment liberalization on the wage skill premium: evidence from Vietnam," Departmental Working Papers 2014-20, The Australian National University, Arndt-Corden Department of Economics.
  • Handle: RePEc:pas:papers:2014-20

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    References listed on IDEAS

    1. Amiti, Mary & Cameron, Lisa, 2012. "Trade Liberalization and the Wage Skill Premium: Evidence from Indonesia," Journal of International Economics, Elsevier, vol. 87(2), pages 277-287.
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    15. repec:fth:prinin:375 is not listed on IDEAS
    16. Alan Krueger, 1997. "Labor Market Shifts and the Price Puzzle Revisited," Working Papers 754, Princeton University, Department of Economics, Industrial Relations Section..
    17. Amy Liu, 2004. "Sectoral gender wage gap in Vietnam," Oxford Development Studies, Taylor & Francis Journals, vol. 32(2), pages 225-239.
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    More about this item


    Wage skill premium; tariffs; firm ownership; trade and investment liberalization;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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