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 -