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Phan Coxhead Vietnam Wage Paper April 14 2011 - Agricultural ...

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Table 4: Oaxaca-­‐Blinder Decomposition of Sources of <strong>Wage</strong> Growth<br />

Δlog(wage)<br />

1993-­‐1998 1998-­‐2002 2002-­‐2008<br />

%<br />

contribution Δlog(wage)<br />

%<br />

contribution Δlog(wage)<br />

%<br />

contribution<br />

Observed total increase in log(wage) 0.543 0.217 0.933<br />

Due to increase in base wage 0.275 50.7% 0.<strong>14</strong>1 64.9% 0.666 71.4%<br />

Due to changes in characteristics 0.028 5.2% 0.024 11.2% 0.023 2.5%<br />

Years of education 0.0<strong>14</strong> 2.6% -­‐0.004 -­‐1.8% 0.046 5.0%<br />

Years of experience 0.003 0.6% 0.136 62.4% -­‐0.191 -­‐20.5%<br />

Years of experience squared -­‐0.001 -­‐0.2% -­‐0.091 -­‐41.7% 0.124 13.3%<br />

Male dummy 0.002 0.5% 0.002 0.9% -­‐0.001 -­‐0.1%<br />

Ethnic minority dummy 0.000 0.0% -­‐0.011 -­‐5.1% 0.006 0.6%<br />

Urban dummy 0.015 2.7% -­‐0.035 -­‐15.9% 0.007 0.8%<br />

Public sector dummy -­‐0.004 -­‐0.7% -­‐0.012 -­‐5.6% 0.024 2.6%<br />

Tradable industry dummy -­‐0.001 -­‐0.2% 0.000 0.2% 0.008 0.9%<br />

Due to changes in returns to<br />

characteristics 0.240 44.1% 0.091 41.8% 0.244 26.1%<br />

Years of education 0.229 42.2% 0.028 13.1% 0.<strong>14</strong>2 15.2%<br />

Years of experience 0.046 8.5% -­‐0.008 -­‐3.7% 0.139 <strong>14</strong>.9%<br />

Years of experience squared 0.008 1.4% -­‐0.028 -­‐13.1% -­‐0.021 -­‐2.3%<br />

Male dummy -­‐0.076 -­‐<strong>14</strong>.0% 0.007 3.1% 0.008 0.8%<br />

Kinh ethnicity dummy 0.002 0.3% -­‐0.021 -­‐9.7% 0.022 2.4%<br />

Urban dummy 0.046 8.5% 0.033 15.1% -­‐0.039 -­‐4.2%<br />

Public sector dummy 0.006 1.0% 0.131 60.4% -­‐0.042 -­‐4.5%<br />

Tradable industry dummy -­‐0.021 -­‐3.8% -­‐0.051 -­‐23.5% 0.035 3.7%<br />

Notes: Bold means statistically significant at 5% or less<br />

Italic means statistically significant at 10%<br />

Table 5: average hourly wage by educational level and institution, 1993<br />

Public Nonpublic Public/Ratio<br />

no degree 1.89 1.75 1.08<br />

primary school 1.85 2.02 0.92<br />

lower secondary 1.54 1.88 0.82<br />

upper secondary 1.63 2.01 0.81<br />

college & above 2.04 1.90 1.07<br />

<strong>Wage</strong> ratio (base = no degree)<br />

no degree 1 1<br />

primary school 0.98 1.16<br />

middle school 0.82 1.07<br />

high school 0.86 1.15<br />

college & above 1.08 1.09<br />

<strong>Wage</strong>s are in thousand VND, January 1993 price, deflated regionally and monthly

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