Discrimination against Migrants in Urban Vietnam

Jonathan Haughton, Wendi Sun and Le Thi Thanh Loan
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Wendi Sun: Rockland Trust
Le Thi Thanh Loan: Open University of Ho Chi Minh City

International Advances in Economic Research, 2018, vol. 24, issue 3, No 1, 232 pages

Abstract: Abstract In 2009, migrant workers in the two major cities of Vietnam, Hanoi and Ho Chi Minh City, earned 42% less per hour than did non-migrant (“resident”) workers. We seek to explain this gap using data from a carefully-designed urban poverty survey undertaken in 2009 by the General Statistics Office. We use the method proposed by Brown, Moon, and Zoloth, which first explains how workers sort into different sectors, and then examines wage differentials using a Blinder-Oaxaca style decomposition. About half of the wage gap may be explained by endowments. The system of residential permits (ho khau) may contribute to the difficulties faced by migrants. Our results are broadly similar to, although more stable and plausible than, those found for the major cities in China.

Keywords: Urban migrants; Wage gap; Blinder-Oaxaca decomposition; Brown et al. decomposition; Vietnam (search for similar items in EconPapers)
JEL-codes: J31 J61 O15 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s11294-018-9688-6

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