Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/270426 
Year of Publication: 
2023
Series/Report no.: 
GLO Discussion Paper No. 1253
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
In this study, we examine the impact of minimum wages in Vietnam using individual-level data from the 2012-2020 annual Labor Force Surveys. During this period, the average real minimum wage increased by around 4% per year. Overall, we do not find significant effects from minimum wages on employment and monthly wages. However, we find a considerable negative effect on workers' total working hours. Working hours per week are reduced by 0.38% for a 1% increase in the minimum wage. Since total wages remain unchanged, a reduction in working hours results in an increase in hourly income. A 1% increase in the minimum wage leads to a 0.32% increase in hourly wages. Interestingly, for workers earning below minimum wage, we find a positive effect from minimum wages on their monthly income. A 1% increase in the minimum wage increases monthly income of workers earning below minimum wage by 0.83%.
Subjects: 
Minimum wages
employment
labor productivity
impact evaluation
Vietnam
JEL: 
J31
J50
O12
Document Type: 
Working Paper

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