DO MINIMUM WAGE INCREASES MATTER TO FIRM PROFITABILITY? THE CASE OF VIETNAM
Article first published online: 17 MAY 2013
Copyright © 2013 John Wiley & Sons, Ltd.
Journal of International Development
How to Cite
Cuong, N. V. (2013), DO MINIMUM WAGE INCREASES MATTER TO FIRM PROFITABILITY? THE CASE OF VIETNAM. J. Int. Dev.. doi: 10.1002/jid.2920
- Article first published online: 17 MAY 2013
- Manuscript Accepted: 4 APR 2013
- Manuscript Revised: 21 FEB 2013
- Manuscript Received: 31 AUG 2011
- minimum wages;
- firm profitability;
- propensity score matching;
This paper measures the impact of a minimum wage increase in 2005 on profitability of private firms in Vietnam using a difference-in-differences with propensity score matching method. Data used for this analysis are from Vietnam Enterprise Censuses in 2004 and 2006. It is found that the impact estimate of the minimum wage increase in 2005 from 290 to 350 thousand VND on firms’ profit margins is very small and negative and not statistically significant. Copyright © 2013 John Wiley & Sons, Ltd.