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Wage Differentials among Ownership Groups and Worker Quality in Vietnamese Manufacturing

Eric Ramstetter () and Kien Nguyen

No 2015-05, AGI Working Paper Series from Asian Growth Research Institute

Abstract: This paper examines wage differentials among medium-large (20 or more employees) whollyforeign multinational enterprises (WFs), joint-venture multinationals (JVs), state-owned enterprises (SOEs), and domestic private firms in Vietnamese manufacturing. The analysis focuses on 2009 because it is possible to examine wage differentials after accounting for the influences of two measures of worker quality, educational background and occupation. Simple comparisons in large samples of 11 industries combined indicate that averages wages in JVs were about 92 percent higher than in private firms in 2009, SOEs and WFs paid 57 and 54 percent more than private firms, respectively. Corresponding, conditional differentials that control for the influences of worker education and occupation, as well as capital intensity, size, and shares of female workers, were substantially smaller, but positive and significant in largesamples. Wage levels and differentials varied substantially among industries. Conditional differentials remained positive and significant for WFs and JFs in most of the 11 industries examined, but estimates of SOE-private differentials were insignificant in most industries. Robustness checks using 2007 data could not account for worker occupation, but revealed results similar to those for 2009.

Keywords: Multinational enterprises; manufacturing; wage differentials; state-owned enterprises; ownership; Multinational enterprises; manufacturing; wage differentials; state-owned enterprises; ownership (search for similar items in EconPapers)
JEL-codes: F23 J31 L60 O53 (search for similar items in EconPapers)
Date: 2015-03
New Economics Papers: this item is included in nep-sea and nep-tra
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Journal Article: Wage Differentials among Ownership Groups and Worker Quality in Vietnamese Manufacturing (2017) Downloads
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