{"title":"Trade liberalization and the wage–skill premium: Evidence from Vietnamese manufacturing","authors":"Mita Bhattacharya, K. Nguyen","doi":"10.1111/ECOT.12183","DOIUrl":null,"url":null,"abstract":"This paper examines the wage–skill premium in Vietnamese manufacturing since the reform programme. The effects of tariff reductions on the wage–skill premium are analyzed in the presence of exporting opportunities, foreign investment, and research and development. The findings with firm‐level data reveal that a 10‐ percentage point fall in output tariffs is associated with a 4 percent increase in the wage–skill premium. The wage–skill premium in foreign‐invested enterprises is 40 percent higher than that of domestic enterprises. Trade liberalization influences the wage–skill premium in the presence of foreign ownership and R&D, while its impact on the skill premium only works through exporting.","PeriodicalId":47148,"journal":{"name":"Economics of Transition","volume":"23 1","pages":"519-540"},"PeriodicalIF":0.0000,"publicationDate":"2019-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"3","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Economics of Transition","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1111/ECOT.12183","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 3
Abstract
This paper examines the wage–skill premium in Vietnamese manufacturing since the reform programme. The effects of tariff reductions on the wage–skill premium are analyzed in the presence of exporting opportunities, foreign investment, and research and development. The findings with firm‐level data reveal that a 10‐ percentage point fall in output tariffs is associated with a 4 percent increase in the wage–skill premium. The wage–skill premium in foreign‐invested enterprises is 40 percent higher than that of domestic enterprises. Trade liberalization influences the wage–skill premium in the presence of foreign ownership and R&D, while its impact on the skill premium only works through exporting.
期刊介绍：
Economics of Transition publishes high-quality, refereed articles on the economics of structural transformation, institutional development, and growth. It presents innovative theoretical work and econometric analyses of the process of economic reform and its macroeconomic effects. The journal aims to promote new thinking on how institutions and institutional change can be analyzed and measured and how their impact on aggregate economic performance can be evaluated.
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