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Are Migrants in Large Cities Underpaid? Evidence from Vietnam


  • Nguyen, Viet Cuong
  • Pham, Minh Thai


This paper examine the difference in wages between migrants and non-migrants (native workers) in large cities in Vietnam. It is found that migrants receive substantially lower wages than non-migrants. The wage gap tends to be larger for older migrants. However, once observed demographic characteristics of workers are controlled, there is no difference in wages between migrants and non-migrants. The main difference in observed wages between migrants and non-migrants is explained by differences in age and education between migrants and non-migrants.

Suggested Citation

  • Nguyen, Viet Cuong & Pham, Minh Thai, 2012. "Are Migrants in Large Cities Underpaid? Evidence from Vietnam," MPRA Paper 40765, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:40765

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    References listed on IDEAS

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    7. Nguyen Thu Phuong & Tran Ngo Thi Minh Tam & Nguyen Thi Nguyet & Remco Oostendorp, 2008. "Determinants and Impacts of Migration in Vietnam," Working Papers 01, Development and Policies Research Center (DEPOCEN), Vietnam.
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    Cited by:

    1. Nguyen, Cuong, 2016. "The Ageing Trend and Related Socio-Economic Issues in Vietnam," MPRA Paper 81825, University Library of Munich, Germany.

    More about this item


    Migration; underpaid; decomposition; household survey; Vietnam;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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