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Who Suffers the Penalty? A Panel Data Analysis of Earnings Gaps in Vietnam

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Date
2013-12
Dewey
Croissance et développement économiques
Sujet
Informal employment; earnings gap; transition matrix; panel data; Vietnam
JEL code
J.J2.J21; J.J2.J23; J.J2.J24; J.J3.J31; O.O1.O17
Journal issue
The Journal of Development Studies
Volume
49
Number
12
Publication date
12-2013
Article pages
1694-1710
Publisher
Taylor & Francis
DOI
http://dx.doi.org/10.1080/00220388.2013.822069
URI
https://basepub.dauphine.fr/handle/123456789/12321
Collections
  • LEDa : Publications
Metadata
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Author
Roubaud, François
status unknown
Nordman, Christophe Jalil
status unknown
Nguyen, Huu Chi
status unknown
Type
Article accepté pour publication ou publié
Abstract (EN)
In spite of its predominant economic weight in developing countries, little is known about the informal sector earnings structure compared to that of the formal sector. Taking advantage of the rich VHLSS dataset in Vietnam, in particular its three wave panel data (2002, 2004, 2006), we assess the magnitude of various formal–informal earnings gaps while addressing heterogeneity at three different levels: the worker, the job (wage employment vs. self-employment) and the earnings distribution. We estimate fixed effects and quantile regressions to control for unobserved individual characteristics. Our results suggest that the informal sector earnings gap highly depends on the workers’ job status and on their relative position in the earnings distribution. Penalties may in some cases turn into premiums. By comparing our results with studies in other developing countries, we draw conclusions highlighting Vietnam’s labour market specificity

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