The Impact of Trade Liberalization on the Return to Education in Vietnam: Wage Versus Employment Effect

Oostendorp, Remco; Quang, Doan Hong

doi:10.2139/ssrn.1799945

Cited by 3 publications

(5 citation statements)

References 33 publications

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“…Our analysis has also shown the net impact of trade liberalization on wage premia might be masked by interactions between institutions and trade. In this respect it complements other findings that trade liberalization reduces returns to education (Oostendorp and Doan 2010).…”

Section: Resultssupporting

confidence: 80%

“…Returns to one additional year of schooling ranges from 3% to 6%; shift in demand in favor of more educated workers drives changes in wage structure Pham & Reilly 2007a1993, 1998, 2002 Mean and quantile regression separately for male and female; Oaxaca decomposition of gender wage gap into treatment and endowment effects at mean and at quantiles of conditional wage distribution Ethnic wage gap is largely attributable to differentials in returns to endowments Oostendorp & Doan 20101998, 2002 Endogenous employment choice for sample selection; workers divided into three groups: non-traded, import-substituting, and export-oriented industries; diff-in-diff to study impact of trade liberalization on returns to education.…”

Section: Discussionmentioning

confidence: 99%

“…Liberalization of the exchange rate regime, external trade and capital flows have played a major role in the transition. Oostendorp and Doan (2010) examine the labor market effects of trade liberalization and find that it lowered returns to education by 1.2-3.6%, though in their study most of this decline was due to changes in the industry distribution of employment rather than lower Mincerian returns. We explore the traded/nontraded dimension further in this paper and reach a somewhat different conclusion.…”

Section: Prior Studiesmentioning

confidence: 99%

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Long-run costs of piecemeal reform: Wage inequality and returns to education in Vietnam

Phan

Coxhead

2013

Journal of Comparative Economics

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Shock therapy" transitions in Eastern Europe facilitated movement of skilled workers into privatized industries offering high wage premia relative to state industries. Other transitional economies (notably China and Vietnam) have been slower to relinquish control over key industries and factor markets. Some costs of this piecemeal approach are now becoming apparent. We examine the spillover of continuing capital market distortions into the market for a complementary factor, skilled labor. Using Vietnamese data we find that capital market segmentation creates a two-track market for skills, in which state sector workers earn high salaries while non-state workers face lower demand and lower compensation. Growth is reduced directly by diminished allocative efficiency and incentives to acquire education, and indirectly by higher wage inequality and rents for workers with access to state jobs.

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Section: Resultssupporting

confidence: 80%

Section: Discussionmentioning

confidence: 99%

Section: Prior Studiesmentioning

confidence: 99%

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Long-run costs of piecemeal reform: Wage inequality and returns to education in Vietnam

Phan

Coxhead

2013

Journal of Comparative Economics

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“…Consequently, unskilled labours were oversupplied, and informality dramatically increased in urban regions, which increased urban inequality. The increasing inequality was not reversed during the neoliberal period (Goldberg and Pavcnik 2004; Oostendorp and Quang 2010).…”

Section: Data and Regional Classificationmentioning

confidence: 99%

“…A second explanation for the disequalising effect of trade liberalisation is the so-called «skill-enhancing trade» (Robbins 1995). Particularly, the presence of large Asian countries drove Latin American countries to produce semi-skilled products, which generated skill premium (Oostendorp and Quang 2010, p. 4).…”

Section: Determinants Of Educational Inequalitymentioning

confidence: 99%

EDUCATIONAL INEQUALITY AND ITS DETERMINANTS: EVIDENCE FOR WOMEN IN NINE LATIN AMERICAN COUNTRIES, 1950s-1990s

Teng

2019

RHE / JILAEH

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This paper examines educational inequality in nine Latin American countries at the sub-country level from the 1950s to the 1990s. Educational inequality is measured by the difference in schooling years between the taller and the shorter half of the female population. Schooling years significantly increased across birth cohorts, especially before the 1980s, regardless of socio-economic stratum, region or country. However, educational inequality persisted. This finding reflects the achievement of the import substitution industrialisation era in educational development and its failure in mitigating the unequal distribution of education rooted in Latin America's social structure. Trade liberalisation and educational expansion are found to reduce educational inequality in capital and urban regions, whereas democracy and tax reform increased it. By contrast, educational inequality in rural regions was hardly influenced by policy changes. This finding urges future explorations into whether the persistence of educational inequality in rural regions is due to endemic social structure.

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Can Regional Trade Agreements Negatively Impact Primary Schooling?

Chong

Srebot

2022

Open Econ Rev

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The Impact of Trade Liberalization on the Return to Education in Vietnam: Wage Versus Employment Effect

Cited by 3 publications

References 33 publications

Long-run costs of piecemeal reform: Wage inequality and returns to education in Vietnam

Long-run costs of piecemeal reform: Wage inequality and returns to education in Vietnam

EDUCATIONAL INEQUALITY AND ITS DETERMINANTS: EVIDENCE FOR WOMEN IN NINE LATIN AMERICAN COUNTRIES, 1950s-1990s

Can Regional Trade Agreements Negatively Impact Primary Schooling?

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