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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 from a wageperspective by decomposing the difference in wage distributions between SOE mployees and non-SOE employees during the period 2002–2014. In 2002, SOE employees enjoyed higher pay than non-SOE employees owing to characteristics difference and any factors other than either the price of skills or the characteristics difference, so-called residuals difference. University graduates were the main contributor to the endowments difference. However, we found that SOE pay schemes converged with those of non-SOEs by 2014, in terms of both the price of skills and residuals.

Suggested Citation

  • Vu, Tien Manh & Yamada, Hiroyuki, 2017. "Convergence of public and private enterprise wages in a transition economy: Evidence from a distributional decomposition in Vietnam, 2002–2014," AGI Working Paper Series 2017-10, Asian Growth Research Institute.
    • Handle: RePEc:agi:wpaper:00000130
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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. 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.
    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. 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.
    5. 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.
    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

    Wage; wage decomposition; wage distribution; state-owned enterprises; transition; Vietnam; Wage; wage decomposition; wage distribution; state-owned enterprises; transition; Vietnam; J30; J45; O15; P31;
    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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