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Role of Individual Characteristics and Policies in Driving Labor Informality in Vietnam
Author:
Ms. Era Dabla-Norris
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,
Mr. Giovanni Ganelli
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Anh Thi Ngoc Nguyennull

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Series:
IMF Working Papers
Volume/Issue:
Volume 2020: Issue 273
Language:
English
Publication Date:
11 Dec 2020
DOI:
https://doi.org/10.5089/9781513563862.001
ISBN:
9781513563862
ISSN:
1018-5941
Pages:
34
Keywords:
informality; Vietnam; Labor Force Survey; labor market segmentation; structural reforms; economic governance; PCI.; WP; wage worker; wage premium; FDI firm; wage employment; earnings gap; work experience
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Using data from the Vietnam Labor Force Survey, this paper takes a granular look at the most salient drivers of labor informality in Vietnam by examining: (i) the nature of labor informality and transitions from formal to informal employment status and the role of worker characteristics; (ii) the empirical likelihood of being in informal employment and the policy determinants of informality using within-in country variation in the business climate and governance; and (iii) whether different policy reforms have a differential impact on workers. Our analysis sheds light on how individual characteristics and policy impediments contribute to high levels of informality and points to the need for a comprehensive agenda to tackle informality.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2020: Issue 273