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Can training close the gender wage gap? Evidence from Vietnamese SMEs

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  • Benedikte Bjerge
  • Nina Torm
  • Neda Trifkovic

Abstract

Firm-provided training is generally seen as an important tool for bridging the skills gap between the labour force and what the private sector demands. Little is known about how successful such training can be in closing the gender wage gap. We use a matched employer-employee panel dataset to assess why firms train and whether formal training affects wage outcomes in Vietnamese SMEs. Training is generally found to be firm-sponsored and specific in nature. We find that training is associated with higher wages for trained women as compared to both untrained women and men. However, we do not find a statistically significant wage difference between trained women and men. Furthermore, the wage increase is only associated with on-the-job training. Our findings indicate that, at least in Vietnam, firm-sponsored on-the-job training could help increase women’s labour productivity and thus contribute to closing the gender wage gap.

Suggested Citation

  • Benedikte Bjerge & Nina Torm & Neda Trifkovic, 2021. "Can training close the gender wage gap? Evidence from Vietnamese SMEs," Oxford Development Studies, Taylor & Francis Journals, vol. 49(2), pages 119-132, April.
    • Handle: RePEc:taf:oxdevs:v:49:y:2021:i:2:p:119-132
    DOI: 10.1080/13600818.2021.1883572
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    Cited by:

    1. Henrik Hansen & S. Kanay De & John Rand & Neda Trifković, 2023. "Wage returns to workplace training in Myanmar," Development Policy Review, Overseas Development Institute, vol. 41(2), March.
    2. Henrik Hansen & S Kanayade & John Rand & Neda Trifkovic, 2021. "Workplace training in Myanmar: Determinants and wage returns," DERG working paper series 21-10, University of Copenhagen. Department of Economics. Development Economics Research Group (DERG).

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