Public-Private Sector Wage Differentials for Males and Females in Vietnam

Nguyen Danh, Hoang Long (2006): Public-Private Sector Wage Differentials for Males and Females in Vietnam.

Abstract

This study examines public administration-private wage differentials and SOEs-private wage differentials for males and females. Based on data from Vietnam Living Standards Survey in 2002 (VLSS 2002), wage equations with and without selectivity correction are estimated by sector of employment for males and females. From these results, the study compares the wage structure by sector of work for males and females. Oaxaca-Blinder decomposition of the public administration-private sector wage differentials and the State-Owned Enterprises (SOEs)-private sector wage differentials are carried out. Results, which are controlled for observed characteristics and selection bias, indicate some main points. For men, public workers are paid lower than private workers. For women, public administration wages are lower than private wages. However, SOE wages are higher than private wages for women. The wage differential is mostly due to the differential in characteristics in which public workers have richer characteristics than private workers. In these worker characteristics, education is the most important element accounting for wage differentials. Besides, there are differences in returns to characteristics by sector of work for men and for women. Furthermore, the total unexplained differential has a large contribution of the wage differential in the constant term of public administration vs. private sector and SOE vs. private sector for men and women.

• Item Type: MPRA Paper
• Language: English
• Subjects: J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs; J - Labor and Demographic Economics > J7 - Labor Discrimination