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Pecuniary Returns to Working Conditions in Vietnam

Nordman, Christophe J.; Sharma, Smriti (2020), Pecuniary Returns to Working Conditions in Vietnam, in Rand, John; Tarp, Finn, Micro, Small, and Medium Enterprises in Vietnam, Oxford University Press : Oxford, p. 208-229. 10.1093/oso/9780198851189.003.0010

Type
Chapitre d'ouvrage
Date
2020
Book title
Micro, Small, and Medium Enterprises in Vietnam
Book author
Rand, John; Tarp, Finn
Publisher
Oxford University Press
Published in
Oxford
ISBN
9780198851189
Pages
208-229
Publication identifier
10.1093/oso/9780198851189.003.0010
Metadata
Show full item record
Author(s)
Nordman, Christophe J. cc
Développement, institutions et analyses de long terme [DIAL]
Sharma, Smriti
Abstract (EN)
Using matched worker-firm data from three waves of the Vietnam Small and Medium Enterprises data, we examine whether workers are compensated with higher wages for working in vulnerable jobs and unfavourable working conditions. Wage equations indicate that there are no clear compensating mechanisms for working in poor conditions, for having an informal contract, and for having few financial benefits. Quantile regressions show that workers in the upper tail of the wage distribution are more likely to be penalized for working in adverse working conditions. Employees recruited through official hiring channels with an informal contract earn less than employees hired through social networks. Upon estimating mean decompositions of wage gaps based on working conditions, we find that the gap is almost entirely explained by the conjunction of worker, job, and firm characteristics in 2015, in contrast to the previous survey year of 2013.
Subjects / Keywords
Vietnam; SMEs; informal contracts; working conditions; compensating mechanisms; hiring channels; social networks; wage gaps
JEL
O15 - Human Resources; Human Development; Income Distribution; Migration
O17 - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
O53 - Asia including Middle East

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