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Do Returns to Schooling Go Up During Transition? The Not So Contrary Case of Vietnam

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Abstract

A key stylized fact about transition economies is that the returns to schooling rise as economic reform progresses. Existing research suggests that Vietnam is an exception to this pattern, with a decrease in males’ return from 1992 to 1998, and little increase in the return to females’ education (Liu, 2006). This exception may be because of the gradual economic reform applied in Vietnam, whilst in Eastern European countries the “Big Bang” transformation was conducted. Therefore to see whether Vietnam is still a counter example, we re-examine the trend in the rate of return to schooling in Vietnam over the 1998-2004 period, where the reforms have had a longer time to have an effect.

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  • Tinh T. Doan & John Gibson, 2009. "Do Returns to Schooling Go Up During Transition? The Not So Contrary Case of Vietnam," Working Papers in Economics 09/08, University of Waikato.
  • Handle: RePEc:wai:econwp:09/08
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    File URL: ftp://wms-webprod1.mngt.waikato.ac.nz/RePEc/wai/econwp/0908.pdf
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    1. Orazem, Peter F & Vodopivec, Milan, 1995. "Winners and Losers in Transition: Returns to Education, Experience, and Gender in Slovenia," World Bank Economic Review, World Bank Group, vol. 9(2), pages 201-230, May.
    2. Gibson, John & Fatai, Osaiasi Koliniusi, 2006. "Subsidies, selectivity and the returns to education in urban Papua New Guinea," Economics of Education Review, Elsevier, vol. 25(2), pages 133-146, April.
    3. George Psacharopoulos & Harry Anthony Patrinos, 2004. "Returns to investment in education: a further update," Education Economics, Taylor & Francis Journals, vol. 12(2), pages 111-134.
    4. Brainerd, Elizabeth, 1998. "Winners and Losers in Russia's Economic Transition," American Economic Review, American Economic Association, pages 1094-1116.
    5. Zhang, Junsen & Zhao, Yaohui & Park, Albert & Song, Xiaoqing, 2005. "Economic returns to schooling in urban China, 1988 to 2001," Journal of Comparative Economics, Elsevier, pages 730-752.
    6. Moock, Peter R. & Patrinos, Harry Anthony & Venkataraman, Meera, 2003. "Education and earnings in a transition economy: the case of Vietnam," Economics of Education Review, Elsevier, vol. 22(5), pages 503-510, October.
    7. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", pages 129-137.
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    Cited by:

    1. Doan, Tinh & John, Gibson, 2010. "Return to schooling in Vietnam during economic transition: Does return to schooling in Vietnam reach its peak?," MPRA Paper 24986, University Library of Munich, Germany, revised 30 Aug 2010.

    More about this item

    Keywords

    economic transition; returns to schooling; Vietnam;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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