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

Tien Manh Vu, Hiroyuki Yamada

Research output: Contribution to journalArticle

Abstract

We examine the transition of state-owned enterprises (SOEs) in Vietnam during the period 2002–2014 from a wage perspective by decomposing the differences in wage distributions between SOE employees and non-SOE employees. Although SOE employees received higher pay in 2002 because of differences in the characteristics and residuals, the differences in coefficients were minimal along the wage distribution during 2002–2014. The differences in characteristics decreased over time in the middle and middle-to-high wage distribution groups. University graduates were the main contributor to the difference in endowments. By 2014, the residuals difference vanished and the pay schemes between SOEs and non-SOEs converged.

Original languageEnglish
Article number100737
JournalEconomic Systems
DOIs
Publication statusAccepted/In press - 2019 Jan 1

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Wages
Decomposition
Transition economies
State-owned enterprises
Private enterprise
Public enterprise
Employees
Wage distribution
Endowments
Coefficients

Keywords

  • State-owned enterprise
  • Transition
  • Vietnam
  • Wage
  • Wage decomposition
  • Wage distribution

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

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AB - We examine the transition of state-owned enterprises (SOEs) in Vietnam during the period 2002–2014 from a wage perspective by decomposing the differences in wage distributions between SOE employees and non-SOE employees. Although SOE employees received higher pay in 2002 because of differences in the characteristics and residuals, the differences in coefficients were minimal along the wage distribution during 2002–2014. The differences in characteristics decreased over time in the middle and middle-to-high wage distribution groups. University graduates were the main contributor to the difference in endowments. By 2014, the residuals difference vanished and the pay schemes between SOEs and non-SOEs converged.

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