Del Carpio, Ximena and Nguyen, Cuong and Nguyen, Ha and Wang, Choon (2013): The Impact of Minimum Wages on Employment, Wages and Welfare: The Case of Vietnam.
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Abstract
The paper investigates the impact of recent minimum wage changes on wages, employment and household welfare in Vietnam. It finds that minimum wage changes reduce the total number of wage workers (especially in domestic firms) and increases the incidence of self-employment. The number of wage workers declines because many wage workers with informal contracts lose their jobs, but only a fraction of the job loss is absorbed by the creation of self-employment or formal jobs. In addition, minimum wages help raise the average wages of workers who keep their jobs. In terms of welfare, an increase in minimum wage reduces poverty and raises household income and consumption expenditure, most importantly in education-related expenditures.
Item Type: | MPRA Paper |
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Original Title: | The Impact of Minimum Wages on Employment, Wages and Welfare: The Case of Vietnam |
Language: | English |
Keywords: | Minimum wages, firms, impact evaluation, panel data, Vietnam |
Subjects: | J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure ; Wage Differentials L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L25 - Firm Performance: Size, Diversification, and Scope |
Item ID: | 83677 |
Depositing User: | Cuong Nguyen Viet |
Date Deposited: | 09 Jan 2018 02:49 |
Last Modified: | 28 Sep 2019 13:16 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/83677 |