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Convergence of public and private enterprise wages in a transition economy: Evidence from a distributional decomposition in Vietnam, 2002–2014

Tien Vu and Hiroyuki Yamada

No 2017-10, AGI Working Paper Series from Asian Growth Research Institute

Abstract: We examine the transition of state-owned enterprises (SOEs) in Vietnam from a wageperspective by decomposing the difference in wage distributions between SOE mployees and non-SOE employees during the period 2002–2014. In 2002, SOE employees enjoyed higher pay than non-SOE employees owing to characteristics difference and any factors other than either the price of skills or the characteristics difference, so-called residuals difference. University graduates were the main contributor to the endowments difference. However, we found that SOE pay schemes converged with those of non-SOEs by 2014, in terms of both the price of skills and residuals.

Keywords: Wage; wage decomposition; wage distribution; state-owned enterprises; transition; Vietnam; Wage; wage decomposition; wage distribution; state-owned enterprises; transition; Vietnam; J30; J45; O15; P31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dcm, nep-sea and nep-tra
Date: 2017-04
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Working Paper: Convergence of public and private enterprise wages in a transition economy: Evidence from a distributional decomposition in Vietnam, 2002–2014 (2017) Downloads
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