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Return to education in Vietnam during the recent transformation

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Listed:
  • Tinh Doan
  • John Gibson

Abstract

A common phenomenon about transition economies is that the return to schooling improves as economic reform progresses. Existing evidence suggests that Vietnam is not an exception to the pattern. However, the rate of return for the period 1992 to 1998 is still low relative to that of the world and of other transitional economies. To provide up-to-date estimates of the return and to test whether the return to schooling in Vietnam is rising and reaches other transitional economies' rate of return, we re-examine the return in Vietnam from 1998 until before the current global economic crisis when the reforms have had a longer time to have an effect. We apply the OLS and Heckman selection estimators and find that the return has increased quickly during the later economic reform period but its pace has slowed down when the return reached the global average rate.

Suggested Citation

  • Tinh Doan & John Gibson, 2012. "Return to education in Vietnam during the recent transformation," International Journal of Education Economics and Development, Inderscience Enterprises Ltd, vol. 3(4), pages 314-329.
    • Handle: RePEc:ids:ijeded:v:3:y:2012:i:4:p:314-329
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    Citations

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    Cited by:

    1. Kumara, Ajantha Sisira, 2015. "Wage Differentials in Sri Lanka: The case of a post-conflict country with a free education policy," MPRA Paper 68068, University Library of Munich, Germany, revised 25 Nov 2015.
    2. Dai Binh Tran & Sasiwimon Warunsiri Paweenawat, 2023. "The returns to education and wage penalty from overeducation: New evidence from Vietnam," Bulletin of Economic Research, Wiley Blackwell, vol. 75(4), pages 1267-1290, October.
    3. Tran, Tuyen Quang & Van Vu, Huong, 2020. "Wage earning differentials by field of study: Evidence from Vietnamese university graduates," International Journal of Educational Development, Elsevier, vol. 78(C).
    4. Doan, Tinh & Tran, Tuyen Quang & Nguyen, Hien, 2018. "Provincial Competitiveness And Labour Market Returns In Vietnam," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 59(2), pages 95-112, December.
    5. Tran, Tuyen Quang & Hung Pham, Hiep & Thi Vo, Hoa & Thuy Luu, Hong & Mai Nguyen, Huong, 2019. "Local governance, education and occupation-education mismatch: Heterogeneous effects on wages in a lower middle income economy," International Journal of Educational Development, Elsevier, vol. 71(C).
    6. 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.
    7. Tinh Doan & Tran Quang Tuyen & Hien Nguyen, 2018. "Local Competitiveness and Labour Market Returns in a Transition Economy: Evidence from Vietnam," Working Papers in Economics 18/06, University of Waikato.
    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. Doan, Tinh & Ha, Van & Tran, Tuyen & Yang, Judy, 2023. "Dynamics of wage inequality over the prolonged economic transformation: The case of Vietnam," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 816-834.

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