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Does union membership pay off?: Evidence from Vietnamese SMEs

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Abstract

In the absence of adequate institutional mechanisms, trade unions can potentially promote higher wages and other worker benefits, yet limited data availability means little is known about the effect unions have on individual earnings in developing economies. Using matched employer-employee data from 2013 and 2015 surveys, this paper examines the union wage premium among Vietnamese small and medium-sized enterprises. Controlling for firm and worker characteristics, the results show that unionized workers' wages are 9-22 per cent higher than those of non-union workers.

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  • Nina Torm, 2018. "Does union membership pay off?: Evidence from Vietnamese SMEs," WIDER Working Paper Series wp-2018-71, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2018-71
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    Cited by:

    1. Sung Min Han & Fangjin Ye, 2022. "Labor union, between group inequality, and individual attitudes toward redistribution," Social Science Quarterly, Southwestern Social Science Association, vol. 103(5), pages 1248-1259, September.
    2. Linh Thuy Pham & Yothin Jinjarak, 2023. "Global value chains and female employment: The evidence from Vietnam," The World Economy, Wiley Blackwell, vol. 46(3), pages 726-757, March.

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