The Impacts of Social Enterprises on Labor Market Outcomes: Evidence from Vietnam

Abstract

This study examines whether social enterprise development improves labor market outcomes of the entire economy. Using the data of social enterprise and labor force survey in Vietnam, we conduct a regression analysis to address this question. We focus on the rapid growth period of social enterprises in Vietnam during the early 2010s. Our results suggest that, as the number of social enterprises increases, the average labor earning increases, the probabilities of being unemployed and being self-employed decrease, and average working hours increase. Since our study evaluates the effect of social enterprise development on the outcomes of overall labor market rather than the social enterprise sector alone, it provides justification for promoting such a policy from policymaker’s point of view.

Keywords: Social enterprises, Labor market outcomes, Sustainable development

JEL Classification: L31, E24