The impact of trade and investment liberalization on the wage skill premium: evidence from Vietnam

Kien Nguyen

Departmental Working Papers from The Australian National University, Arndt-Corden Department of Economics

Abstract: This paper examines the impact of trade and investment liberalization on the wage skill premium between skilled and unskilled workers in Vietnamese manufacturing. The result from an econometric analysis using a firm-level dataset reveals the important role of trade liberalization as an impetus for narrowing the skill premium. There is also evidence that foreign investment has a significant effect on widening the wage skill premium. More importantly, export-oriented foreign investment is likely to play an important role in the determination of the wage skill premium in the Vietnamese manufacturing.

Keywords: Wage skill premium; tariffs; firm ownership; trade and investment liberalization (search for similar items in EconPapers)
JEL-codes: F14 F16 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2014
New Economics Papers: this item is included in nep-int and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:pas:papers:2014-20

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