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Firm Exporting and Employee Benefits: First Evidence from Vietnam Manufacturing SMEs

Huong Vu (), Steven Lim (), Mark Holmes () and Tinh Doan
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Huong Vu: University of Waikato
Steven Lim: University of Waikato

Working Papers in Economics from University of Waikato

Abstract: This study examines linkages between the export participation of firms and employee benefits in terms of wages and employment quality. Based on a uniquely matched firm-worker panel dataset for 2007 and 2009, we find evidence that export participation by firms in Vietnam has a positive impact on wages when taking into account firm characteristics alone. However, the exporter wage premium falls when both firm and worker characteristics are controlled for, and it decreases further when controlling for time-invariant unobservable factors by spell fixed effect estimation. While there are many studies on the export wage premium, the role of export participation on the quality of employment remains largely unexplored. By using a firm-level balanced panel dataset for the same period, our results suggest that export participation has a negative effect on employment quality. Nevertheless, the impact of export participation on both wages and employment quality vary greatly with respect to levels of technology.

Keywords: exporting; wages; employment; Vietnam (search for similar items in EconPapers)
JEL-codes: F14 F16 F19 J21 J31 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2012-11-01
New Economics Papers: this item is included in nep-cse, nep-lma, nep-sbm and nep-sea
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Journal Article: Firm Exporting and Employee Benefits: First Evidence from Vietnam Manufacturing SMEs (2013) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:wai:econwp:12/12

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