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Do Minimum Wage Increases Matter to Profitability of Private Firm? The Case of Vietnam

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  • Nguyen, Cuong

Abstract

This paper measures the impact of a minimum wage increase on profitability of private firms in Vietnam using a difference-in-differences with propensity score matching method. Data used for this analysis are from Vietnam Enterprise Censuses in 2005 and 2006. It is found that the impact estimate of the minimum wage increase in 2005 from 290 to 350 thousand VND on firms’ profit margins is very small and negative, and not statistically significant.

Suggested Citation

  • Nguyen, Cuong, 2009. "Do Minimum Wage Increases Matter to Profitability of Private Firm? The Case of Vietnam," MPRA Paper 48655, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:48655
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    Cited by:

    1. Arias-Vazquez, Javier & Gamberoni, Elisa & Nguyen, Cuong, 2013. "A Short-Term Effect of a Better Work Programme on Firms’ Performance: Evidence from Vietnam," MPRA Paper 67475, University Library of Munich, Germany.
    2. Nguyen, Cuong, 2012. "Do Minimum Wages Affect Firms’ Labor and Capital? Evidence from Vietnam," MPRA Paper 48656, University Library of Munich, Germany.
    3. Cuong Viet Nguyen, 2017. "Do minimum wages affect firms’ labor and capital? Evidence from Vietnam," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 22(2), pages 291-308, April.

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    More about this item

    Keywords

    Minimum wage; firm profitability; difference-in-differences; propensity score matching; Vietnam.;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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