The impact of minimum wage adjustments on Vietnamese wage inequality

Henrik Hansen, John Rand, Nina Torm

Publikation: Working paperForskningpeer review

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
coecient 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 2011
to 2012 that levelled the minimum wage across economic sectors.
OriginalsprogEngelsk
Udgivelses stedHanoi
UdgiverInternational Labour Organisation
Udgave1
Antal sider56
ISBN (Trykt)978-92-2-128941-8
ISBN (Elektronisk)978-92-2-128942-5
StatusUdgivet - 1 dec. 2016

Emneord

  • wage differential
  • minimum wage
  • wage structure
  • Vietnam

Citer dette

Hansen, H., Rand, J., & Torm, N. (2016). The impact of minimum wage adjustments on Vietnamese wage inequality. (1 udg.) International Labour Organisation.