Labor Market Segmentation in Vietnam – survey Evidence

Nguyen Thi Kim Dung, Nguyen Manh Hai, Tran Thi Hanh, Tran Kim Chung
JEL codes: 
Central Institute for Economic Management Working Paper with the Asian Development Bank

As revealed in the previous studies, the earning decomposition based on secondary data has appeared less informative with respect to the actual and perceived barriers to the integration of labour markets. Hence, additional information is needed to determine what are the biggest constraints of finding good jobs? What are the perceived chances of finding good jobs and how stable are they? What other individual characteristics besides formal human capital increase the chances of finding good jobs? Do certain labour market segments carry a stigma such that it becomes more difficult to move to other segments? As such, the fieldwork has been designed to gather this additional information among a number of the poor wage workers. It is expected that this information is both corroborate the earlier market segmentation analysis based on secondary data as well as provides additional insights into the functioning of labour markets in Vietnam, especially those for the poor.