abstract: 'In this paper, we examine changes in wage structure and wage premia

  during Vietnam''s transition from command to market economy. Relative to

  other work in this literature, our paper is unique in that we identify

  the policies that lead to such changes. By examining skill premium

  trends along the two dimensions of particular importance to the

  transition state or non-state firms, and traded or non-traded industries

  we are able to separate the contribution of external liberalization to

  wage growth and rising skill premia from that of domestic labor market

  reforms, and to examine potential interactions between the two types of

  reform. The results point to the high cost of incomplete reform in

  Vietnam. Capital market segmentation creates a two-track market for

  skills, in which state sector workers earn high salaries while non-state

  workers face lower demand and lower compensation. Growth is reduced

  directly by diminished allocative efficiency and reduced incentives to

  acquire education, and indirectly by higher wage inequality and rents

  for workers with access to state jobs. (C) 2013 Association for

  Comparative Economic Studies Published by Elsevier Inc. All rights

  reserved.'
affiliation: 'Phan, D (Corresponding Author), Beloit Coll, Dept Econ, Beloit, WI 53511
  USA.

  Diep Phan, Beloit Coll, Dept Econ, Beloit, WI 53511 USA.

  Coxhead, Ian, Univ Wisconsin, Dept Agr \& Appl Econ, Madison, WI 53706 USA.'
author: Phan, Diep and Coxhead, Ian
author-email: phand@beloit.edu
author_list:
- family: Phan
  given: Diep
- family: Coxhead
  given: Ian
da: '2023-09-28'
doi: 10.1016/j.jce.2013.04.001
eissn: 1095-7227
files: []
issn: 0147-5967
journal: JOURNAL OF COMPARATIVE ECONOMICS
keywords: 'Wage inequality; Returns to education; State sector policy; Vietnam;

  Transition economy'
keywords-plus: 'CAPITAL-SKILL COMPLEMENTARITY; DEVELOPING-COUNTRIES; TRANSITION; TRADE;

  ECONOMY'
language: English
month: NOV
number: '4'
number-of-cited-references: '37'
orcid-numbers: Coxhead, Ian/0000-0001-6958-038X
pages: 1106-1122
papis_id: 04e5670fe0eb6c553c904ec9b1847803
ref: Phan2013longruncosts
times-cited: '20'
title: 'Long-run costs of piecemeal reform: Wage inequality and returns to education
  in Vietnam'
type: Article
unique-id: WOS:000327571000009
usage-count-last-180-days: '0'
usage-count-since-2013: '18'
volume: '41'
web-of-science-categories: Economics
year: '2013'