The Impact of Minimum Wages on Employment, Wages and Welfare: The Case of Vietnam

Ximena Del Carpio (), Cuong Nguyen, Ha Nguyen and Liang Wang
Authors registered in the RePEc Author Service: Ha Nguyen and Nguyen Phu Ha ()

MPRA Paper from University Library of Munich, Germany

Abstract: The paper investigates the impact of recent minimum wage changes on wages, employment and household welfare in Vietnam. It finds that minimum wage changes reduce the total number of wage workers (especially in domestic firms) and increases the incidence of self-employment. The number of wage workers declines because many wage workers with informal contracts lose their jobs, but only a fraction of the job loss is absorbed by the creation of self-employment or formal jobs. In addition, minimum wages help raise the average wages of workers who keep their jobs. In terms of welfare, an increase in minimum wage reduces poverty and raises household income and consumption expenditure, most importantly in education-related expenditures.

Keywords: Minimum wages; firms; impact evaluation; panel data; Vietnam (search for similar items in EconPapers)
JEL-codes: J31 L25 (search for similar items in EconPapers)
Date: 2013-06-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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