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Have the returns to education really increased in Vietnam? Wage versus employment effect

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  • Oostendorp, Remco H.
  • Doan, Quang Hong

Abstract

Many studies have analyzed changes in the returns to education in globalizing economies using the Mincerian framework. These studies have typically estimated the returns to education in terms of changes in wages rather than employment, effectively ignoring the fact that during globalization not only wages but also employment patterns are affected. In this paper we use four large-scale representative household surveys from the transition economy Vietnam for the period 1998–2006 to estimate the returns to education taking into account both changes in wages and employment. The results show that the estimated increases in returns to education are lower once changes in employment patterns are taken into account.

Suggested Citation

  • Oostendorp, Remco H. & Doan, Quang Hong, 2013. "Have the returns to education really increased in Vietnam? Wage versus employment effect," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 923-938.
    • Handle: RePEc:eee:jcecon:v:41:y:2013:i:3:p:923-938
    DOI: 10.1016/j.jce.2012.12.002
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    Cited by:

    1. Tinh Doan & Quan Le & Tuyen Quang Tran, 2018. "Lost in Transition? Declining Returns to Education in Vietnam," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(2), pages 195-216, April.
    2. Smriti Sharma & Christophe Nordman, 2018. "Pecuniary returns to working conditions in Vietnam," WIDER Working Paper Series 72, World Institute for Development Economic Research (UNU-WIDER).
    3. Christophe J. Nordman & Smriti Sharma, 2018. "Pecuniary returns to working conditions in Vietnam," WIDER Working Paper Series wp-2018-72, World Institute for Development Economic Research (UNU-WIDER).
    4. Thanos Mergoupis & Van Phan & John G. Sessions, 2018. "Puzzle me this?: The Vietnamese reverse gender education gap," WIDER Working Paper Series wp-2018-116, World Institute for Development Economic Research (UNU-WIDER).
    5. Thanos Mergoupis & Van Phan & John Sessions, 2018. "Puzzle me this?: The Vietnamese reverse gender education gap," WIDER Working Paper Series 116, World Institute for Development Economic Research (UNU-WIDER).
    6. McGuinness, Seamus & Kelly, Elish & Pham Thi Thu, Phuong & Ha Thi Thu, Thuy, 2015. "Returns to Education and the Demand for Labour in Vietnam," Papers WP506, Economic and Social Research Institute (ESRI).
    7. Bui, Tuan & Dungey, Mardi & Nguyen, Cuong & Pham, Phuong, 2016. "Impacts of Economic Integration on Living Standards and Poverty Reduction of Rural Households," MPRA Paper 71129, University Library of Munich, Germany.
    8. 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.
    9. McGuinness, Seamus & Kelly, Elish & Pham, Thi Thu Phuong & Ha, Thi Thu Thuy & Whelan, Adele, 2021. "Returns to education in Vietnam: A changing landscape," World Development, Elsevier, vol. 138(C).
    10. Dang, Thang, 2017. "Education as Protection? The Effect of Schooling on Non-Wage Compensation in a Developing Country," MPRA Paper 79223, University Library of Munich, Germany.

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    More about this item

    Keywords

    Transition; Globalization; Returns to education; Employment; Vietnam;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General

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