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Firm Exporting and Employee Benefits: First Evidence from Vietnam Manufacturing SMEs

  • Huong Vu

    ()

    (University of Waikato)

  • Steven Lim

    ()

    (University of Waikato)

  • Mark Holmes

    ()

    (University of Waikato)

  • Tinh Doan

    ()

    (Ministry of Business, Innovation & Employment)

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.

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File URL: ftp://mngt.waikato.ac.nz/RePEc/wai/econwp/1212.pdf
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Paper provided by University of Waikato, Department of Economics in its series Working Papers in Economics with number 12/12.

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Length: 19 pages
Date of creation: 01 Nov 2012
Date of revision:
Handle: RePEc:wai:econwp:12/12
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  1. 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.
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  9. 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.
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  12. 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.
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  14. 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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  18. 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.
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