Minimum Wages and Firm Exports: Evidence from Vietnamese Manufacturing Firms
This paper investigates the relationship between the minimum wage and firm’s export behavior by using firm-level data of Vietnamese manufacturing enterprises over the period 2010 through 2015. In this regard, I apply the logistic regression model for the probability of exporting and the differenc...
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| Format: | Article |
| Language: | English |
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Korea Institute for International Economic Policy
2021-03-01
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| Series: | East Asian Economic Review |
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| Summary: | This paper investigates the relationship between the minimum wage and firm’s export
behavior by using firm-level data of Vietnamese manufacturing enterprises over the period
2010 through 2015. In this regard, I apply the logistic regression model for the probability
of exporting and the differences-in-differences analysis to the data, and find that raising
minimum wage standards drive no new exporters but a rise in a firm’s export sales. Less
productive and more labor-intensive firms raise their amount of exports in response to
increasing minimum wage levels. Being exposed to increasing minimum wage levels
makes a firm under-perform in terms of export sales compared to non-exposed firms. |
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| ISSN: | 2508-1640 2508-1667 |