Employment Structure and Returns to Skill in Vietnam: Estimates Using the Labor Force Survey

58 Pages Posted: 13 Mar 2018 Last revised: 14 Mar 2018

Date Written: March 12, 2018

Abstract

This paper uses Labor Force Survey data to assess key aspects of the labor market in Vietnam over 2007-14. The analysis finds large growth in wage employment in the foreign-owned and domestic private sectors. However, the state sector remains a major employer, particularly for workers with higher education, employing 70 percent of wage workers with a university degree. Low-skilled occupations dominate the stock of existing jobs, but the top growing occupations overwhelmingly belong to high-skilled categories. The paper notes that the high unemployment rates of recent university graduates, which have raised concern about a mismatch between skills and employer needs, reflect the transition to the job market and diminish sharply as graduates age. The returns to education in the private sector are highest for university graduates. Finally, women and ethnic minorities are less likely to work in wage jobs, and those that do earn lower wages, although the wage gap for women has declined over time.

Keywords: Educational Sciences, Labor Markets, Economics of Education, Employment and Unemployment, Rural Labor Markets

Suggested Citation

Demombynes, Gabriel and Testaverde, Mauro, Employment Structure and Returns to Skill in Vietnam: Estimates Using the Labor Force Survey (March 12, 2018). World Bank Policy Research Working Paper No. 8364. Available at SSRN: https://ssrn.com/abstract=3139156

Gabriel Demombynes (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Mauro Testaverde

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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