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Convergence of public and private enterprise wages in a transition economy: Evidence from a distributional decomposition in Vietnam, 2002–2014

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  • Vu, Tien Manh
  • Yamada, Hiroyuki

Abstract

We examine the transition of state-owned enterprises (SOEs) in Vietnam during the period 2002–2014 from a wage perspective by decomposing the differences in wage distributions between SOE employees and non-SOE employees. Although SOE employees received higher pay in 2002 because of differences in the characteristics and residuals, the differences in coefficients were minimal along the wage distribution during 2002–2014. The differences in characteristics decreased over time in the middle and middle-to-high wage distribution groups. University graduates were the main contributor to the difference in endowments. By 2014, the residuals difference vanished and the pay schemes between SOEs and non-SOEs converged.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:ecosys:v:44:y:2020:i:1:s0939362519300470
    DOI: 10.1016/j.ecosys.2019.100737
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    Cited by:

    1. Tien Manh Vu & Hiroyuki Yamada, 2023. "Impacts of enterprise zones on local households in Vietnam," Pacific Economic Review, Wiley Blackwell, vol. 28(5), pages 593-612, December.
    2. Diep Phan & Ian Coxhead, 2020. "Persistent Privilege? Institutional Education Gaps during Vietnam's Economic Boom," The Developing Economies, Institute of Developing Economies, vol. 58(4), pages 332-359, December.
    3. Tien Manh Vu & Hiroyuki Yamada, 2021. "Firms and regional favouritism," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 29(4), pages 711-734, October.
    4. Tien Manh Vu & Hiroyuki Yamada, 2020. "Persistent legacy of the 1075-1919 Vietnamese imperial examinations in contemporary quantity and quality of education," Keio-IES Discussion Paper Series 2020-012, Institute for Economics Studies, Keio University.
    5. Diep Phan & Ian Coxhead, 2020. "Persistent Privilege? Institutional Education Gaps during Vietnam's Economic Boom," Working Papers 2020-023, Human Capital and Economic Opportunity Working Group.
    6. Ian Coxhead & Nguyen Dinh Tuan Vuong, 2023. "Does the Skill Premium Influence Educational Decisions? Evidence from Viet Nam," Working Papers DP-2023-03, Economic Research Institute for ASEAN and East Asia (ERIA).

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    More about this item

    Keywords

    State-owned enterprise; Transition; Wage; Wage decomposition; Wage distribution; Vietnam;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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