Convergence of public and private enterprise wages in a transition economy: Evidence from a distributional decomposition in Vietnam, 2002–2014

Vu, Tien Manh and Yamada, Hiroyuki (2017): Convergence of public and private enterprise wages in a transition economy: Evidence from a distributional decomposition in Vietnam, 2002–2014.

Abstract

We examine the transition of state-owned enterprises (SOEs) in Vietnam from a wage perspective by decomposing the difference in wage distributions between SOE employees and non-SOE employees during the period 2002–2014. In 2002, SOE employees enjoyed higher pay than non-SOE employees owing to characteristics difference and any factors other than either the price of skills or the characteristics difference, so-called residuals difference. University graduates were the main contributor to the endowments difference. However, we found that SOE pay schemes converged with those of non-SOEs by 2014, in terms of both the price of skills and residuals.

• Item Type: MPRA Paper
• Language: English
• Keywords: Wage, wage decomposition, wage distribution, state-owned enterprises, transition, Vietnam
• Subjects: J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J30 - General; J - Labor and Demographic Economics > J4 - Particular Labor Markets > J45 - Public Sector Labor Markets; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources ; Human Development ; Income Distribution ; Migration; P - Economic Systems > P3 - Socialist Institutions and Their Transitions > P31 - Socialist Enterprises and Their Transitions

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