The impact of minimum wage adjustments on Vietnamese wage inequality

Henrik Hansen, John Rand, Nina Torm

Research output: Working paperResearchpeer-review


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.
Original languageEnglish
Place of PublicationHanoi
PublisherInternational Labour Organisation
Number of pages56
ISBN (Print)978-92-2-128941-8
ISBN (Electronic)978-92-2-128942-5
Publication statusPublished - 1 Dec 2016


  • Minimum wage
  • Wage distribution
  • Labour
  • VietNam

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