Decomposing Vietnamese Gender Equality in Terms of Wage Distribution

Abstract

We decompose the gender wage gap in terms of wage distribution in Vietnam during 2002–2014 using two methods. The first method uses two estimated counterfactual distributions; the second uses an estimated recentred influence function. We focus on the formal sector and find evidence for a consistent gender wage gap, with the price of skills being the main contributor. In contrast, labour market discrimination does not have a crucial influence. Some gender equality gained by the distribution of skills can be explained by the rise in women's education and women's participation in specific industries, occupations and the growing private sector.