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. We use a comparative advantage model to disentangle the effect of sorting workers ac...

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Main Author:	Imbert, Clement
Format:	Journal Article
Language:	en_US
Published:	Oxford University Press on behalf of the World Bank 2014
Subjects:	attrition earning earnings inequality household surveys labor market labor markets massive layoffs Private enterprises private sector private sector employees Private Sectors public sector employees public sector workers total labor force unskilled workers wage differentials wage employment wage gap wage inequality workers
Online Access:	http://hdl.handle.net/10986/19086

id	okr-10986-19086
recordtype	oai_dc
spelling	okr-10986-190862021-04-23T14:03:51Z Decomposing the Labor Market Earnings Inequality : The Public and Private Sectors in Vietnam, 1993–2006 Imbert, Clement attrition earning earnings inequality household surveys labor market labor markets massive layoffs Private enterprises private sector private sector employees Private Sectors public sector employees public sector workers total labor force unskilled workers wage differentials wage employment wage gap wage inequality 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. We use 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. We find 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. 2014-07-30T21:10:07Z 2014-07-30T21:10:07Z 2013-01 Journal Article World Bank Economic Review 1564-698X 10.1093/wber/lhs009 http://hdl.handle.net/10986/19086 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article Vietnam
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	attrition earning earnings inequality household surveys labor market labor markets massive layoffs Private enterprises private sector private sector employees Private Sectors public sector employees public sector workers total labor force unskilled workers wage differentials wage employment wage gap wage inequality workers
spellingShingle	attrition earning earnings inequality household surveys labor market labor markets massive layoffs Private enterprises private sector private sector employees Private Sectors public sector employees public sector workers total labor force unskilled workers wage differentials wage employment wage gap wage inequality workers Imbert, Clement Decomposing the Labor Market Earnings Inequality : The Public and Private Sectors in Vietnam, 1993–2006
geographic_facet	Vietnam
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. We use 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. We find 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	Journal Article
author	Imbert, Clement
author_facet	Imbert, Clement
author_sort	Imbert, Clement
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	Oxford University Press on behalf of the World Bank
publishDate	2014
url	http://hdl.handle.net/10986/19086
_version_	1764443543555801088

Decomposing the Labor Market Earnings Inequality : The Public and Private Sectors in Vietnam, 1993–2006

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