Can training close the gender wage gap? Evidence from Vietnamese SMEs

Nina Torm, Neda Trifkovic, Benedikte Bjerge

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Firm-provided training is generally seen as an important tool for bridging
the skills gap between the labour force and what the private sector
demands. Little is known about how successful such training can be in
closing the gender wage gap. We use a matched employer-employee
panel dataset to assess why firms train and whether formal training affects
wage outcomes in Vietnamese SMEs. Training is generally found to be
firm-sponsored and specific in nature. We find that training is associated
with higher wages for trained women as compared to both untrained
women and men. However, we do not find a statistically significant wage
difference between trained women and men. Furthermore, the wage
increase is only associated with on-the-job training. Our findings indicate
that, at least in Vietnam, firm-sponsored on-the-job training could help
increase women’s labour productivity and thus contribute to closing the
gender wage gap.
TidsskriftOxford Development Studies
Antal sider14
StatusE-pub ahead of print - 8 feb. 2021

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