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Assessing the Potential Impact of the Global Crisis on the Labour Market and the Informal Sector in Vietnam

Cling, Jean-Pierre; Razafindrakoto, Mireille; Roubaud, François (2011), Assessing the Potential Impact of the Global Crisis on the Labour Market and the Informal Sector in Vietnam, Economics and Development, 38, p. 16-25

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08-Impact of the Global Crisis on labour market and informal sector_DEPOCENWP-1.pdf (383.1Kb)
Type
Article accepté pour publication ou publié
Date
2011
Journal name
Economics and Development
Volume
38
Pages
16-25
Metadata
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Author(s)
Cling, Jean-Pierre
Razafindrakoto, Mireille
Roubaud, François
Abstract (EN)
Although the impact was less dramatic than in other Asian countries, Vietnam has been affected by the international crisis which started in 2008, resulting in a significant slowdown of economic growth. This paper aims at assessing the impact of this economic crisis on employment, unemployment and the informal sector. Contrarily to previous studies on this subject, we anticipate a very small increase of unemployment. According to our estimates, most of the impact of the crisis in terms of employment will actually be felt in the informal sector, where most new entrants on the labour market and laid-off workers will end up working. This feature will result in an urgent need to put in place specific policies to tackle informal sector low productivity and its manpower’s lack of labour protection.
Subjects / Keywords
Labour market; Economic crisis; Economic Growth; Vietnam
JEL
J80 - General
N35 - Asia including Middle East
E26 - Informal Economy; Underground Economy
O17 - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
J64 - Unemployment: Models, Duration, Incidence, and Job Search

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