Sectoral job choice and rewards in the Vietnamese labour market [article]

Dinh The Phan, University, The Australian National, University, The Australian National
Along with many other former socialist countries, Vietnam began a comprehensive economic reform program (the so-called "doi moi") in the late 1980s. Since the launch of doi moi, the private sector has been legalised and has been playing an increasingly significant role in job-provision and income generation. Yet, a private sector job (compared to a public sector job) is still seen in a less favourable light by job-seekers. This thesis focuses on addressing the question of why a public sector
more » ... is still preferred to a private sector job during the transition from a centrally planned economy to a market "oriented" economy in Vietnam. The key data used for the analysis are derived from the Vietnam Living Standards Survey (VLSS) conducted in 1992-93. The thesis consists of four main chapters. The focus of Chapter 2 is to ascertain "who works for whom" and "the driving forces influencing one's probability of holding a particular sector job". A general approach is adopted for the analysis by specifying a "reduced" form for the probability model (the multinomial logit model) presenting the relationship between the probability holding a particular sector job and the characteristics of the individual. Among examined factors, education is found to be the most consistently significant factor influencing an individual's likelihood of holding a certain sector job. A higher level of education increases the probability of employment in the public sector, particularly in government institutions. Age is also a fairly important determinant of sectoral employment. The young tend to have a private sector job, whereas the elderly remain with the public sector. The chapter argues that better economic opportunities and rewards received by public sector employees, in particular highly educated employees, are possible factors amongst others giving potential employees stronger incentives to obtain a job and remain with the public sector. Other factors such as gender, location, region, and the household head's employment type are also f [...]
doi:10.25911/5d7784a91ebc1 fatcat:lh5byl62ynabrcucgcjiommgoa