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Minimum Wages and Firm Exports: Evidence from Vietnamese Manufacturing Firms

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  • Nguyen, Dong Xuan

    (Vietnam National University Hanoi)

Abstract

This paper investigates the relationship between the minimum wage and firm’s export behavior by using firm-level data of Vietnamese manufacturing enterprises over the period 2010 through 2015. In this regard, I apply the logistic regression model for the probability of exporting and the differences-in-differences analysis to the data, and find that raising minimum wage standards drive no new exporters but a rise in a firm’s export sales. Less productive and more labor-intensive firms raise their amount of exports in response to increasing minimum wage levels. Being exposed to increasing minimum wage levels makes a firm under-perform in terms of export sales compared to non-exposed firms.

Suggested Citation

  • Nguyen, Dong Xuan, 2021. "Minimum Wages and Firm Exports: Evidence from Vietnamese Manufacturing Firms," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 25(1), pages 99-121, March.
    • Handle: RePEc:ris:eaerev:0392
    DOI: 10.11644/KIEP.EAER.2021.25.1.392
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    More about this item

    Keywords

    Wages; Exports; Vietnam;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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