The impact of minimum wages on employment of low-wage workers: Evidence from Vietnam

Nguyen, Viet Cuong

Economics of Transition, 21, no. 3 (2013): 583–615. doi: 10.1111/ecot.12022


Abstract

This study provides empirical evidence on the impact of a minimum wage increase on employment of workers in the formal sector who have wages below the minimum level in Vietnam. Using the difference-in-differences with propensity score matching and the Vietnam Household Living Standard Surveys of 2004 and 2006, the article finds that the minimum wage increase in 2005 reduced the proportion of workers having a formal sector job among low-wage workers. Most workers who lost formal sector jobs became self-employed.

Full text for Wiley Online Library subscribers only.

© 2016 Mekong Development Research Institute

Address: Floor 8, Machinco Building, 444 Hoang Hoa Tham, Hanoi, Viet Nam.
Telephone: +84 024 3247 4668       Fax: +84 024 3247 4596
Email: info@mdri.org.vn

STAY CONNECTED WITH US: