Do Minimum Wages Increase Female Employment? Evidence from Vietnamese Manufacturing Firms

Abstract

ABSTRACT In this article, I empirically examine the employment effect of minimum wages using firm-level data on Vietnamese manufacturing and find that minimum wages have a positive association with a firm’s female employment. This effect is the highest in automotive and engineering manufactures, and the lowest in textile, garment, and footwear manufactures. Alternative regressions provide evidence that the higher the total factor productivity, the increased female labor share, and the higher pay to their employees, the stronger the female employment effect. The female employment impact is positive, but this impact weakened after the uniform minimum wage rate was applied in 2012.