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Foreign Wage Premium, Gender and Education: Insights from Vietnam Household Surveys

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  • Emiko Fukase

Abstract

type="main" xml:id="twec12103-abs-0001"> This paper investigates the differential impacts of foreign ownership on wages for different types of workers (in terms of educational background and gender) in Vietnam using the Vietnam Household Living Standards Surveys of 2002 and 2004. Whereas most previous studies have compared wage levels between foreign and domestic sectors using firm-level data (thus excluding the informal sector), one advantage of using the Living Standards Surveys in this paper is that the data allow wage comparison analyses to extend to the informal wage sector. A series of Mincerian earnings equations and worker-specific fixed effects models are estimated. Several findings emerge. First, foreign firms pay higher wages relative to their domestic counterparts after controlling for workers' personal characteristics. Second, the higher the individual workers' levels of education, the larger on average are the wage premiums for those who work for foreign firms. Third, longer hours of work in foreign firm jobs relative to working in the informal wage sector are an important component of the wage premium. Finally, unskilled women experience a larger foreign wage premium than unskilled men, reflecting the low earning opportunities for women and a higher gender gap in the informal wage sector.

Suggested Citation

  • Emiko Fukase, 2014. "Foreign Wage Premium, Gender and Education: Insights from Vietnam Household Surveys," The World Economy, Wiley Blackwell, vol. 37(6), pages 834-855, June.
    • Handle: RePEc:bla:worlde:v:37:y:2014:i:6:p:834-855
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    File URL: http://hdl.handle.net/10.1111/twec.2014.37.issue-6
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    Cited by:

    1. Vu, Tien Manh & Yamada, Hiroyuki, 2020. "Convergence of public and private enterprise wages in a transition economy: Evidence from a distributional decomposition in Vietnam, 2002–2014," Economic Systems, Elsevier, vol. 44(1).
    2. Kien Trung Nguyen & Eric D. Ramstetter, 2017. "Wage Differentials among Ownership Groups and Worker Quality in Vietnamese Manufacturing," Global Economic Review, Taylor & Francis Journals, vol. 46(3), pages 232-250, July.
    3. Joyce P. Jacobsen & Sooyoung A. Lee, 2024. "Firm Survival and Gender Composition of Employment: Evidence from Vietnam," Wesleyan Economics Working Papers 2024-009, Wesleyan University, Department of Economics.
    4. Vu, Tien Manh & Yamada, Hiroyuki, 2017. "Decomposing Gender Equality along the Wage Distribution in Vietnam during the Period 2002–14," AGI Working Paper Series 2017-04, Asian Growth Research Institute.
    5. Anh Ngoc Nguyen & Nguyen Thi Tuong Anh & Nguyen Ngoc Minh & Nguyen Thi Phuong Mai, 2018. "SOUTH KOREAN MULTINATIONAL ENTERPRISES AND VIETNAM SMEs’ PARTICIPATION IN GLOBAL PRODUCTION NETWORKS IN THE CONTEXT OF INCREASED ASEAN AND EAST ASIAN REGIONAL ECONOMIC INTEGRATION," Working Papers 03, Development and Policies Research Center (DEPOCEN), Vietnam.
    6. Jaax, Alexander, 2020. "Private sector development and provincial patterns of poverty: Evidence from Vietnam," World Development, Elsevier, vol. 127(C).
    7. Hai-Anh H. Dang & Paul W. Glewwe, 2018. "Well Begun, but Aiming Higher: A Review of Vietnam’s Education Trends in the past 20 Years and Emerging Challenges," Journal of Development Studies, Taylor & Francis Journals, vol. 54(7), pages 1171-1195, July.
    8. Nguyen Thi Thuy Linh & Teh Choon Jin & Tee Poh Kiong & Benjamin Chan Yin Fah, 2016. "Work-family conflict and employee job satisfaction: A comparison of state-owned and foreign-invested enterprises in Vietnam," Journal of Asian Business Strategy, Asian Economic and Social Society, vol. 6(4), pages 63-72, April.
    9. Feeny, Simon & Mishra, Ankita & Trinh, Trong-Anh & Ye, Longfeng & Zhu, Anna, 2021. "Early-Life exposure to rainfall shocks and gender gaps in employment: Findings from Vietnam," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 533-554.
    10. Emiko Fukase, 2014. "Job Opportunities in Foreign Firms and Internal Migration in Vietnam," Asian Economic Journal, East Asian Economic Association, vol. 28(3), pages 279-299, September.

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