The impact of trade and investment liberalization on the wage skill premium: evidence from Vietnam
![](https://acde.crawford.anu.edu.au/sites/default/files/styles/anu_narrow_200_200/public/publication/images/acde_crawford_anu_edu_au/2016-06/td_working_paper_image_24.jpg?itok=fTHwIvvn)
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.
Updated: 16 July 2024/Responsible Officer: Crawford Engagement/Page Contact: CAP Web Team