Depocenwp
DEPOCEN Working Paper Series
Pham Dinh Long, Pham Thi Bich Ngoc, and Holger Gorg, 2014. "TRADE LIBERALIZATION AND LABOR MARKET ADJUSTMENTS IN VIETNAMESE MANUFACTURING"
   
Abstract:
Using both industry and firm level data sets during the period 2003-2008, this paper provides the first comprehensive investigation of the impact of trade liberalization on employment and wages in Vietnamese manufacturing. Overall, we find empirical evidence that trade liberalization has a negative effect on employment and wages. However, the impact magnitude is modest with a decline within 2.4%-3.5% in real wages and 0.76% and 0.17% reductions in industry and firm employment respectively on average over the period. We further investigate the effects of trade liberalization on gender and skill earning gaps and the role of trade unions by location. The analysis shows that trade liberalization appears to reduce the gender and skill earnings differentials.
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