Trade, structural change and labour market transitions in Vietnam
This study provides novel evidence on how structural change occurs at the individual level in a low-income country.
Abstract
We provide novel evidence on how structural change occurs at the individual level in a low-income country. The 2001 U.S-Vietnam Bilateral Trade Agreement led to a large increase in employment in formal manufacturing in Vietnam. We show individuals moved into the most exposed industries from all initial activities. Transitions from other manufacturing, agriculture, and school account for most transitions. There are significant differences in the likelihood of moving into these industries based on initial activity even after conditioning on gender or education. Transitions to these industries were more likely in the districts most exposed to the export demand shock.
This is an output of the Structural Transformation and Economic Growth (STEG) programme.
Citation
Asghar R, McCaig B. 鈥楾rade, structural change and labour market transitions in Vietnam鈥� Structural Transformation and Economic Growth (STEG) WP093, 2024