Minimum Wages and Firm Exports: Evidence from Vietnamese Manufacturing Firms

Dong Xuan Nguyen ()
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Dong Xuan Nguyen: Vietnam National University Hanoi

East Asian Economic Review, 2021, vol. 25, issue 1, 99-121

Abstract: This paper investigates the relationship between the minimum wage and firm’s export behavior by using firm-level data of Vietnamese manufacturing enterprises over the period 2010 through 2015. In this regard, I apply the logistic regression model for the probability of exporting and the differences-in-differences analysis to the data, and find that raising minimum wage standards drive no new exporters but a rise in a firm’s export sales. Less productive and more labor-intensive firms raise their amount of exports in response to increasing minimum wage levels. Being exposed to increasing minimum wage levels makes a firm under-perform in terms of export sales compared to non-exposed firms.

Keywords: Wages; Exports; Vietnam (search for similar items in EconPapers)
JEL-codes: F16 F23 J38 O14 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:ris:eaerev:0392

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