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Occupational Wage Differential Between Urban Workers and Rural Migrants in Vietnam

Chapter
Part of the Population Economics book series (POPULATION)

Abstract

This chapter uses the Vietnam Rural–Urban Migration Survey conducted in 2013 (VRUMS2013) and the Vietnam Household Living Standards Survey 2012 (VHLSS2012) to investigate the earnings differential between urban residents and rural migrants. Rural migrants not only receive lower wages than their urban counterparts, but also tend to be in low-paying jobs. The decomposition results of Brown et al. (Journal of Human Resources 15(1): 3–28, 1980) suggest that within-occupation earnings differential, especially within-job characteristic difference, is the key contributing factor for migrants’ lower relative economic position. Taking the within- and between-occupational difference together—while the explained component remains more important than the unexplained component in accounting for the overall earnings differential, the contribution of the unexplained component (especially the unexplained within-occupation component) is not negligible.

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Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.International and Development Economics, Crawford School of Public PolicyAustralian National UniversityCanberraAustralia

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