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Export and Labor Market Outcomes : A Supply Chain Perspective — Evidence from Viet Nam

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  • Kokas,Deeksha
  • Gladys Lopez-Acevedo
  • Vu,Ha

Abstract

Are changes in the labor market in response to changes in exports contained specifically within exporting industries, or do they disperse throughout the economy through supply chain linkages? This paper studies the case of Viet Nam, an example of a successful export-led growth economy, to examine this question. Combining UN COMTRADE data, input-output tables from the Global Trade Analysis Project, and 2010 to 2019 annual labor force survey data for Viet Nam, the study constructed a measure of each worker’s total exposure to export shocks. The measure accounts for changes due to both direct export exposure (increase in exports in the worker’s own industry) and indirect exposure (from increased exports in other industries that use inputs from the worker’s industry). Estimates of the repercussions from increasing exports on labor market outcomes show that both direct and indirect exposure significantly increase workers’ wages and employment, while reducing inactivity and inequality. Wage premiums for attending college decrease, and the gender wage gap narrows. Wages increase more for the lowest-income workers and employment gains accrue more to unskilled workers, while employment decreases for more skilled workers.

Suggested Citation

  • Kokas,Deeksha & Gladys Lopez-Acevedo & Vu,Ha, 2024. "Export and Labor Market Outcomes : A Supply Chain Perspective — Evidence from Viet Nam," Policy Research Working Paper Series 10868, The World Bank.
    • Handle: RePEc:wbk:wbrwps:10868
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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