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Title: The impact of miminum wage adjustments on Vietnamese wage inequality.
Authors: Hansen, Henrik
John, Rand
Nina, Torm
Keywords: wage differential
Wage distribution
Minimum wage
Minimum wage
Wage structure
Issue Date: 2016
Series/Report no.: International Labour Organisation (ILO);
Abstract: 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.
ISBN: 978-92-2-128941-8 (Print)
ISSN: 978-92-2-128942-5 (Online)
Appears in Collections:Social Development

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