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

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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File URL: ftp://mngt.waikato.ac.nz/RePEc/wai/econwp/0908.pdf
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Paper provided by University of Waikato, Department of Economics in its series Working Papers in Economics with number 09/08.

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Length: 18 pages
Date of creation: 31 Oct 2009
Date of revision:
Handle: RePEc:wai:econwp:09/08
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  1. 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.
  2. Orazem, Peter F. & Vodopivec, Milan, 1994. "Winners and losers in transition : returns to education, experience, and gender in Slovenia," Policy Research Working Paper Series 1342, The World Bank.
  3. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  4. Zhang, Junsen & Zhao, Yaohui & Park, Albert & Song, Xiaoqing, 2005. "Economic returns to schooling in urban China, 1988 to 2001," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 730-752, December.
  5. 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.
  6. Brainerd, Elizabeth, 1998. "Winners and Losers in Russia's Economic Transition," American Economic Review, American Economic Association, vol. 88(5), pages 1094-1116, December.
  7. 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.
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