Firm Exporting and Employee Benefits: First Evidence from Vietnam Manufacturing SMEs
This study examines linkages between the export participation of firms and employee benefits in terms of wages and employment quality. Based on a uniquely matched firm-worker panel dataset for 2007 and 2009, we find evidence that export participation by firms in Vietnam has a positive impact on wages when taking into account firm characteristics alone. However, the exporter wage premium falls when both firm and worker characteristics are controlled for, and it decreases further when controlling for time-invariant unobservable factors by spell fixed effect estimation. While there are many studies on the export wage premium, the role of export participation on the quality of employment remains largely unexplored. By using a firm-level balanced panel dataset for the same period, our results suggest that export participation has a negative effect on employment quality. Nevertheless, the impact of export participation on both wages and employment quality vary greatly with respect to levels of technology.
|Date of creation:||01 Nov 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Private Bag 3105, Hamilton, New Zealand, 3240|
Phone: + 64 (0)7 838 4758 (Administrator)
Fax: + 64 7 838 4331
Web page: http://cms.mngt.waikato.ac.nz/departments/economics
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Martyn Andrews & Thorsten Schank & Richard Upward, 2006. "Practical fixed-effects estimation methods for the three-way error-components model," Stata Journal, StataCorp LP, vol. 6(4), pages 461-481, December.
- Andrew Bernard & Joachim Wagner, 1997.
"Exports and success in German manufacturing,"
Review of World Economics (Weltwirtschaftliches Archiv),
Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 133(1), pages 134-157, March.
- Mangan, John & Williams, Christine, 1999. "Casual Employment in Australia: A Further Analysis," Australian Economic Papers, Wiley Blackwell, vol. 38(1), pages 40-50, March.
- Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
- Brown, W. Mark & Breau, Sebastien, 2011. "Global Links: Exporting, Foreign Direct Investment, and Wages: Evidence from the Canadian Manufacturing Sector," The Canadian Economy in Transition 2011021e, Statistics Canada, Economic Analysis.
- Anna Folke Larsen & John Rand & Nina Torm, 2011.
"Do Recruitment Ties Affect Wages? An Analysis using Matched Employer–Employee Data from Vietnam,"
Review of Development Economics,
Wiley Blackwell, vol. 15(3), pages 541-555, 08.
- Anna Folke Larsen & John Rand & Nina Torm, 2011. "Do recruitment ties affect wages? An analysis using matched employer-employee data from Vietnam," IFRO Working Paper 2011/4, University of Copenhagen, Department of Food and Resource Economics.
- Greenaway, David & Hine, Robert C. & Wright, Peter, 1999. "An empirical assessment of the impact of trade on employment in the United Kingdom," European Journal of Political Economy, Elsevier, vol. 15(3), pages 485-500, September.
- Marco Stampini & Benjamin Davis, 2009. "Does nonagricultural labor relax farmers' credit constraints? Evidence from longitudinal data for Vietnam," Agricultural Economics, International Association of Agricultural Economists, vol. 40(2), pages 177-188, 03.
- Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
- Papke, Leslie E. & Wooldridge, Jeffrey M., 2008. "Panel data methods for fractional response variables with an application to test pass rates," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 121-133, July.
- Sébastien Breau & David L. Rigby, 2006. "Is There Really an Export Wage Premium? A Case Study of Los Angeles Using Matched Employee-Employer Data," Working Papers 06-06, Center for Economic Studies, U.S. Census Bureau.
- Rand, John & Torm, Nina, 2012. "The Benefits of Formalization: Evidence from Vietnamese Manufacturing SMEs," World Development, Elsevier, vol. 40(5), pages 983-998.
- Nina Torm, 2014. "The Role Of Trade Unions In Vietnam: A Case Study Of Small And Medium Enterprises," Journal of International Development, John Wiley & Sons, Ltd., vol. 26(2), pages 207-221, 03.
- Van Biesebroeck, Johannes, 2005.
"Exporting raises productivity in sub-Saharan African manufacturing firms,"
Journal of International Economics,
Elsevier, vol. 67(2), pages 373-391, December.
- Johannes Van Biesebroeck, 2003. "Exporting Raises Productivity in Sub-Saharan African Manufacturing Plants," NBER Working Papers 10020, National Bureau of Economic Research, Inc.
- Yankow, Jeffrey J., 2006. "Why do cities pay more? An empirical examination of some competing theories of the urban wage premium," Journal of Urban Economics, Elsevier, vol. 60(2), pages 139-161, September.
- Milner, Chris & Wright, Peter, 1998. "Modelling Labour Market Adjustment to Trade Liberalisation in an Industrialising Economy," Economic Journal, Royal Economic Society, vol. 108(447), pages 509-28, March.
- Chris Milner & Verena Tandrayen, 2007. "The Impact of Exporting and Export Destination on Manufacturing Wages: Evidence for Sub-Saharan Africa," Review of Development Economics, Wiley Blackwell, vol. 11(1), pages 13-30, 02.
- Sébastien Breau & W. Mark Brown, 2011. "Exporting, Foreign Direct Investment, and Wages: Evidence from the Canadian Manufacturing Sector," Growth and Change, Wiley Blackwell, vol. 42(3), pages 261-286, 09.
- Amy Liu, 2004. "Sectoral gender wage gap in Vietnam," Oxford Development Studies, Taylor & Francis Journals, vol. 32(2), pages 225-239.
- Simpson, Michael & Dawkins, Peter & Madden, Gary, 1997. "Casual Employment in Australia: Incidence and Determinants," Australian Economic Papers, Wiley Blackwell, vol. 36(69), pages 194-204, December.
When requesting a correction, please mention this item's handle: RePEc:wai:econwp:12/12. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Brian Silverstone)
If references are entirely missing, you can add them using this form.