The impact of trade and investment liberalization on the wage skill premium: evidence from Vietnam
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Nguyen, Kien Trung
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Crawford School of Public Policy, The Australian National University
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This paper examines the impact of trade and investment liberalization on the wage skill premium between skilled and unskilled workers in Vietnamese manufacturing. The result from an econometric analysis using a firm-level dataset reveals the important role of trade liberalization as an impetus for narrowing the skill premium. There is also evidence that foreign investment has a significant effect on widening the wage skill premium. More importantly, export-oriented foreign investment is likely to play an important role in the determination of the wage skill premium in the Vietnamese manufacturing.
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Working papers in trade and development
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