Decomposing the Labor Market Earnings Inequality: The Public and Private Sectors in Vietnam, 1993-2006
In contrast with the typical transition to a market economy, earnings inequality in Vietnam between 1993 and 2006 appears to have decreased, and the earnings gap in favor of public employees appears to have widened. The paper uses a comparative adv...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2013/01/17205551/decomposing-labor-market-earnings-inequality-public-private-sectors-vietnam-1993-2006 http://hdl.handle.net/10986/13130 |
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okr-10986-131302021-04-23T14:03:07Z Decomposing the Labor Market Earnings Inequality: The Public and Private Sectors in Vietnam, 1993-2006 Imbert, Clément ATTRITION CAPACITY BUILDING COMPARATIVE ADVANTAGE CONSTANT RETURNS DATA MODEL DESCRIPTIVE STATISTICS DEVELOPMENT ECONOMICS DOMESTIC FIRMS EARNING EARNING INEQUALITY EARNINGS INEQUALITY ECONOMETRIC MODELS ECONOMIC DEVELOPMENT ECONOMIC REVIEW ELECTRICITY EMPLOYEE EMPLOYMENT HISTORIES EMPLOYMENT HISTORY FINANCIAL CRISIS HOUSEHOLD SURVEYS INCREASING FUNCTION INEQUALITY-INCREASING EFFECT LABOR ECONOMICS LABOR MARKET LABOR MARKET REFORMS LABOR MARKET SEGMENTATION LABOR MARKETS MASSIVE LAYOFFS MEASUREMENT ERROR OCCUPATION OCCUPATIONS OLDER WORKERS POLICY DISCUSSIONS POLICY RESEARCH POLITICAL ECONOMY POOR COUNTRY PREVIOUS SECTION PRIVATE COMPANIES PRIVATE EMPLOYMENT PRIVATE ENTERPRISES PRIVATE FIRMS PRIVATE SECTOR PRIVATE SECTOR EARNINGS PRIVATE SECTOR EMPLOYEES PRIVATE SECTOR JOBS PRIVATE SECTOR WORKER PRIVATE SECTOR WORKERS PRIVATE SECTORS PUBLIC PUBLIC EMPLOYEES PUBLIC EMPLOYMENT PUBLIC ENTERPRISES PUBLIC SECTOR PUBLIC SECTOR EMPLOYEES PUBLIC SECTOR PAY PUBLIC SECTOR REFORM PUBLIC SECTOR WAGE PUBLIC SECTOR WORKER PUBLIC SECTOR WORKERS PUBLIC SECTOR WORKFORCE PUBLIC WAGE PUBLIC WORKERS QUANTILE REGRESSIONS RELATIVE IMPORTANCE RURAL WORKERS SERIAL CORRELATION SIGNIFICANT DIFFERENCES SIGNIFICANT EFFECT SOCIAL CAPITAL STATE EMPLOYEES TOTAL EMPLOYMENT TOTAL LABOR FORCE UNSKILLED WORKERS URBAN AREAS VOCATIONAL TRAINING WAGE DIFFERENTIAL WAGE DIFFERENTIALS WAGE DISTRIBUTION WAGE EMPLOYMENT WAGE GAP WAGE INEQUALITY WAGE PREMIUM WORKER WORKERS YOUNGER WORKERS In contrast with the typical transition to a market economy, earnings inequality in Vietnam between 1993 and 2006 appears to have decreased, and the earnings gap in favor of public employees appears to have widened. The paper uses a comparative advantage model to disentangle the effect of sorting workers across sectors from the effect of the differences in returns to workers' skills. The selection of the best workers into the public sector is clearly an important component of the explanation for the public-private sector earnings gap, but the widening of this gap over time is primarily due to changes in the compensation patterns. The paper finds that, in the 1990s, public employees were underpaid compared with their earning potential in the private sector whereas, in the early 2000s, public employees earned similar returns to their comparative advantage in the public and private sectors. The increasing homogeneity in returns to skills in the Vietnamese labor market appears to explain both the increase in the public-private pay gap and the decrease in overall inequality. 2013-04-10T18:48:52Z 2013-04-10T18:48:52Z 2013-01 http://documents.worldbank.org/curated/en/2013/01/17205551/decomposing-labor-market-earnings-inequality-public-private-sectors-vietnam-1993-2006 http://hdl.handle.net/10986/13130 English en_US Policy Research Working Paper;No. 6344 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific Vietnam |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ATTRITION CAPACITY BUILDING COMPARATIVE ADVANTAGE CONSTANT RETURNS DATA MODEL DESCRIPTIVE STATISTICS DEVELOPMENT ECONOMICS DOMESTIC FIRMS EARNING EARNING INEQUALITY EARNINGS INEQUALITY ECONOMETRIC MODELS ECONOMIC DEVELOPMENT ECONOMIC REVIEW ELECTRICITY EMPLOYEE EMPLOYMENT HISTORIES EMPLOYMENT HISTORY FINANCIAL CRISIS HOUSEHOLD SURVEYS INCREASING FUNCTION INEQUALITY-INCREASING EFFECT LABOR ECONOMICS LABOR MARKET LABOR MARKET REFORMS LABOR MARKET SEGMENTATION LABOR MARKETS MASSIVE LAYOFFS MEASUREMENT ERROR OCCUPATION OCCUPATIONS OLDER WORKERS POLICY DISCUSSIONS POLICY RESEARCH POLITICAL ECONOMY POOR COUNTRY PREVIOUS SECTION PRIVATE COMPANIES PRIVATE EMPLOYMENT PRIVATE ENTERPRISES PRIVATE FIRMS PRIVATE SECTOR PRIVATE SECTOR EARNINGS PRIVATE SECTOR EMPLOYEES PRIVATE SECTOR JOBS PRIVATE SECTOR WORKER PRIVATE SECTOR WORKERS PRIVATE SECTORS PUBLIC PUBLIC EMPLOYEES PUBLIC EMPLOYMENT PUBLIC ENTERPRISES PUBLIC SECTOR PUBLIC SECTOR EMPLOYEES PUBLIC SECTOR PAY PUBLIC SECTOR REFORM PUBLIC SECTOR WAGE PUBLIC SECTOR WORKER PUBLIC SECTOR WORKERS PUBLIC SECTOR WORKFORCE PUBLIC WAGE PUBLIC WORKERS QUANTILE REGRESSIONS RELATIVE IMPORTANCE RURAL WORKERS SERIAL CORRELATION SIGNIFICANT DIFFERENCES SIGNIFICANT EFFECT SOCIAL CAPITAL STATE EMPLOYEES TOTAL EMPLOYMENT TOTAL LABOR FORCE UNSKILLED WORKERS URBAN AREAS VOCATIONAL TRAINING WAGE DIFFERENTIAL WAGE DIFFERENTIALS WAGE DISTRIBUTION WAGE EMPLOYMENT WAGE GAP WAGE INEQUALITY WAGE PREMIUM WORKER WORKERS YOUNGER WORKERS |
| spellingShingle |
ATTRITION CAPACITY BUILDING COMPARATIVE ADVANTAGE CONSTANT RETURNS DATA MODEL DESCRIPTIVE STATISTICS DEVELOPMENT ECONOMICS DOMESTIC FIRMS EARNING EARNING INEQUALITY EARNINGS INEQUALITY ECONOMETRIC MODELS ECONOMIC DEVELOPMENT ECONOMIC REVIEW ELECTRICITY EMPLOYEE EMPLOYMENT HISTORIES EMPLOYMENT HISTORY FINANCIAL CRISIS HOUSEHOLD SURVEYS INCREASING FUNCTION INEQUALITY-INCREASING EFFECT LABOR ECONOMICS LABOR MARKET LABOR MARKET REFORMS LABOR MARKET SEGMENTATION LABOR MARKETS MASSIVE LAYOFFS MEASUREMENT ERROR OCCUPATION OCCUPATIONS OLDER WORKERS POLICY DISCUSSIONS POLICY RESEARCH POLITICAL ECONOMY POOR COUNTRY PREVIOUS SECTION PRIVATE COMPANIES PRIVATE EMPLOYMENT PRIVATE ENTERPRISES PRIVATE FIRMS PRIVATE SECTOR PRIVATE SECTOR EARNINGS PRIVATE SECTOR EMPLOYEES PRIVATE SECTOR JOBS PRIVATE SECTOR WORKER PRIVATE SECTOR WORKERS PRIVATE SECTORS PUBLIC PUBLIC EMPLOYEES PUBLIC EMPLOYMENT PUBLIC ENTERPRISES PUBLIC SECTOR PUBLIC SECTOR EMPLOYEES PUBLIC SECTOR PAY PUBLIC SECTOR REFORM PUBLIC SECTOR WAGE PUBLIC SECTOR WORKER PUBLIC SECTOR WORKERS PUBLIC SECTOR WORKFORCE PUBLIC WAGE PUBLIC WORKERS QUANTILE REGRESSIONS RELATIVE IMPORTANCE RURAL WORKERS SERIAL CORRELATION SIGNIFICANT DIFFERENCES SIGNIFICANT EFFECT SOCIAL CAPITAL STATE EMPLOYEES TOTAL EMPLOYMENT TOTAL LABOR FORCE UNSKILLED WORKERS URBAN AREAS VOCATIONAL TRAINING WAGE DIFFERENTIAL WAGE DIFFERENTIALS WAGE DISTRIBUTION WAGE EMPLOYMENT WAGE GAP WAGE INEQUALITY WAGE PREMIUM WORKER WORKERS YOUNGER WORKERS Imbert, Clément Decomposing the Labor Market Earnings Inequality: The Public and Private Sectors in Vietnam, 1993-2006 |
| geographic_facet |
East Asia and Pacific Vietnam |
| relation |
Policy Research Working Paper;No. 6344 |
| description |
In contrast with the typical transition
to a market economy, earnings inequality in Vietnam between
1993 and 2006 appears to have decreased, and the earnings
gap in favor of public employees appears to have widened.
The paper uses a comparative advantage model to disentangle
the effect of sorting workers across sectors from the effect
of the differences in returns to workers' skills. The
selection of the best workers into the public sector is
clearly an important component of the explanation for the
public-private sector earnings gap, but the widening of this
gap over time is primarily due to changes in the
compensation patterns. The paper finds that, in the 1990s,
public employees were underpaid compared with their earning
potential in the private sector whereas, in the early 2000s,
public employees earned similar returns to their comparative
advantage in the public and private sectors. The increasing
homogeneity in returns to skills in the Vietnamese labor
market appears to explain both the increase in the
public-private pay gap and the decrease in overall inequality. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Imbert, Clément |
| author_facet |
Imbert, Clément |
| author_sort |
Imbert, Clément |
| title |
Decomposing the Labor Market Earnings Inequality: The Public and Private Sectors in Vietnam, 1993-2006 |
| title_short |
Decomposing the Labor Market Earnings Inequality: The Public and Private Sectors in Vietnam, 1993-2006 |
| title_full |
Decomposing the Labor Market Earnings Inequality: The Public and Private Sectors in Vietnam, 1993-2006 |
| title_fullStr |
Decomposing the Labor Market Earnings Inequality: The Public and Private Sectors in Vietnam, 1993-2006 |
| title_full_unstemmed |
Decomposing the Labor Market Earnings Inequality: The Public and Private Sectors in Vietnam, 1993-2006 |
| title_sort |
decomposing the labor market earnings inequality: the public and private sectors in vietnam, 1993-2006 |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2013/01/17205551/decomposing-labor-market-earnings-inequality-public-private-sectors-vietnam-1993-2006 http://hdl.handle.net/10986/13130 |
| _version_ |
1764422613078114304 |