The informal sector wage gap among Vietnamese micro-firms

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The informal sector wage gap among Vietnamese micro-firms. / Torm, Nina Elisabeth; Rand, John.

In: Journal of the Asia Pacific Economy, Vol. 17, No. 4, 11.2012, p. 560-577.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Torm, NE & Rand, J 2012, 'The informal sector wage gap among Vietnamese micro-firms', Journal of the Asia Pacific Economy, vol. 17, no. 4, pp. 560-577. https://doi.org/10.1080/13547860.2012.724544

APA

Torm, N. E., & Rand, J. (2012). The informal sector wage gap among Vietnamese micro-firms. Journal of the Asia Pacific Economy, 17(4), 560-577. https://doi.org/10.1080/13547860.2012.724544

Vancouver

Torm NE, Rand J. The informal sector wage gap among Vietnamese micro-firms. Journal of the Asia Pacific Economy. 2012 Nov;17(4):560-577. https://doi.org/10.1080/13547860.2012.724544

Author

Torm, Nina Elisabeth ; Rand, John. / The informal sector wage gap among Vietnamese micro-firms. In: Journal of the Asia Pacific Economy. 2012 ; Vol. 17, No. 4. pp. 560-577.

Bibtex

@article{0988e4e37baa4083917d2dca7b213e52,
title = "The informal sector wage gap among Vietnamese micro-firms",
abstract = "Based on unique firm survey data from 2009, this paper examines the wage differential between formal and informal manufacturing household enterprises in Vietnam. Using the Blinder–Oaxaca decomposition method, we investigate whether the wage gap is attributed mostly to differences in observable characteristics (the endowments) between formal and informal firms, or to variations in the returns to these characteristics (the unexplained component). The results show that average wages are 10%–20% higher in formal firms and that the majority of this gap is due to observable characteristics, in particular differences in firm size, workforce characteristics and location. Thus, traditional wage determinants seem to play an important role in explaining the higher wage returns in formal firms.",
keywords = "Faculty of Social Sciences, informality, wages, Vietnam, informality, wages, Vietnam",
author = "Torm, {Nina Elisabeth} and John Rand",
note = "JEL classification: J31, O17, O53",
year = "2012",
month = nov,
doi = "10.1080/13547860.2012.724544",
language = "English",
volume = "17",
pages = "560--577",
journal = "Journal of the Asia Pacific Economy",
issn = "1354-7860",
publisher = "Routledge",
number = "4",

}

RIS

TY - JOUR

T1 - The informal sector wage gap among Vietnamese micro-firms

AU - Torm, Nina Elisabeth

AU - Rand, John

N1 - JEL classification: J31, O17, O53

PY - 2012/11

Y1 - 2012/11

N2 - Based on unique firm survey data from 2009, this paper examines the wage differential between formal and informal manufacturing household enterprises in Vietnam. Using the Blinder–Oaxaca decomposition method, we investigate whether the wage gap is attributed mostly to differences in observable characteristics (the endowments) between formal and informal firms, or to variations in the returns to these characteristics (the unexplained component). The results show that average wages are 10%–20% higher in formal firms and that the majority of this gap is due to observable characteristics, in particular differences in firm size, workforce characteristics and location. Thus, traditional wage determinants seem to play an important role in explaining the higher wage returns in formal firms.

AB - Based on unique firm survey data from 2009, this paper examines the wage differential between formal and informal manufacturing household enterprises in Vietnam. Using the Blinder–Oaxaca decomposition method, we investigate whether the wage gap is attributed mostly to differences in observable characteristics (the endowments) between formal and informal firms, or to variations in the returns to these characteristics (the unexplained component). The results show that average wages are 10%–20% higher in formal firms and that the majority of this gap is due to observable characteristics, in particular differences in firm size, workforce characteristics and location. Thus, traditional wage determinants seem to play an important role in explaining the higher wage returns in formal firms.

KW - Faculty of Social Sciences

KW - informality

KW - wages

KW - Vietnam

KW - informality

KW - wages

KW - Vietnam

U2 - 10.1080/13547860.2012.724544

DO - 10.1080/13547860.2012.724544

M3 - Journal article

VL - 17

SP - 560

EP - 577

JO - Journal of the Asia Pacific Economy

JF - Journal of the Asia Pacific Economy

SN - 1354-7860

IS - 4

ER -

ID: 44784822