Role of Individual Characteristics and Policies in Driving Labor Informality in Vietnam

Era Dabla-Norris, Giovanni Ganelli and Anh Thi Ngoc Nguyen

No 2020/273, IMF Working Papers from International Monetary Fund

Abstract: Using data from the Vietnam Labor Force Survey, this paper takes a granular look at the most salient drivers of labor informality in Vietnam by examining: (i) the nature of labor informality and transitions from formal to informal employment status and the role of worker characteristics; (ii) the empirical likelihood of being in informal employment and the policy determinants of informality using within-in country variation in the business climate and governance; and (iii) whether different policy reforms have a differential impact on workers. Our analysis sheds light on how individual characteristics and policy impediments contribute to high levels of informality and points to the need for a comprehensive agenda to tackle informality.

Keywords: informality; Vietnam; Labor Force Survey; labor market segmentation; structural reforms; economic governance; PCI.; WP; wage worker; wage premium; FDI firm; wage employment; earnings gap; work experience (search for similar items in EconPapers)
Pages: 34
Date: 2020-12-11
New Economics Papers: this item is included in nep-dev, nep-iue, nep-sea and nep-tra
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