The impact of minimum wage adjustments on Vietnamese wage inequality
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The impact of minimum wage adjustments on Vietnamese wage inequality. / Hansen, Henrik; Rand, John; Torm, Nina.
International Labour Organization (ILO), 2016.Research output: Working paper › Research
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TY - UNPB
T1 - The impact of minimum wage adjustments on Vietnamese wage inequality
AU - Hansen, Henrik
AU - Rand, John
AU - Torm, Nina
PY - 2016/12/1
Y1 - 2016/12/1
N2 - Using Vietnamese Labour Force Survey data we analyse the impact of minimum wage changes on wage inequality. Minimum wages serve to reduce local wage inequality in the formal sectors by decreasing the gap between the median wages and the lower tail of the local wage distributions. In contrast, local wage inequality is increased in the informal sectors. Overall, the minimum wages decrease national wage inequality. Our estimates indicate a decrease in the wage distribution Gini coefficient of about 2 percentage points and an increase in the 10/50 wage ratio of 5-7 percentage points caused by the adjustment of the minimum wages from 2011to 2012 that levelled the minimum wage across economic sectors.
AB - Using Vietnamese Labour Force Survey data we analyse the impact of minimum wage changes on wage inequality. Minimum wages serve to reduce local wage inequality in the formal sectors by decreasing the gap between the median wages and the lower tail of the local wage distributions. In contrast, local wage inequality is increased in the informal sectors. Overall, the minimum wages decrease national wage inequality. Our estimates indicate a decrease in the wage distribution Gini coefficient of about 2 percentage points and an increase in the 10/50 wage ratio of 5-7 percentage points caused by the adjustment of the minimum wages from 2011to 2012 that levelled the minimum wage across economic sectors.
KW - wage differential, minimum wage, wage structure, Vietnam, Minimum wage, Wage distribution, Labour, VietNam
KW - wage differential
KW - minimum wage
KW - wage structure
KW - Viet Nam
M3 - Working paper
SN - 978-92-2-128941-8
BT - The impact of minimum wage adjustments on Vietnamese wage inequality
PB - International Labour Organization (ILO)
ER -
ID: 185441545