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Table 7 Decomposition of wage gap between employees with registration book and employees without registration book and migration since 2008

From: Are migrants in large cities underpaid? Evidence from Vietnam

Variables

X nm

X m

β nm

β m

(X nm − X m)* ((β nm + β m)/2)

(β nm − β m)* ((X nm + X m)/2)

Contrition of X (%)

Contrition of β (%)

Age

33.592***

25.996***

0.0728***

0.0382***

0.4216***

1.0336**

107.46***

263.45**

 

[0.251]

[0.648]

[0.0098]

[0.0138]

[0.0754]

[0.5042]

[20.35]

[137.03]

Age squared

1244.60***

781.70***

−0.0009***

−0.0006***

−0.3543***

−0.3615

−90.30***

−92.14

 

[19.25]

[42.61]

[0.0001]

[0.0002]

[0.0649]

[0.2348]

[17.96]

[62.54]

Sex (male = 1; female = 0)

0.5353***

0.4870***

0.2197***

0.2229***

0.0107

−0.0017

2.72

−0.42

 

[0.0122]

[0.0346]

[0.0251]

[0.0461]

[0.0084]

[0.0276]

[2.11]

[7.14]

Never married (yes = 1)

0.3327***

0.6479***

−0.1041***

−0.1873**

0.0459***

0.0408

11.71***

10.40

 

[0.0112]

[0.0323]

[0.0298]

[0.0937]

[0.0170]

[0.0504]

[4.72]

[13.28]

Urban (urban = 1; rural = 0)

0.7575***

0.7398***

0.0935***

0.0885

0.0016

0.0038

0.41

0.97

 

[0.0093]

[0.0306]

[0.0243]

[0.0546]

[0.0031]

[0.0446]

[0.81]

[11.49]

Hanoi (yes = 1)

0.3409***

0.3461***

−0.0785***

−0.0526

0.0003

−0.0089

0.09

−2.27

 

[0.0099]

[0.0299]

[0.0258]

[0.0499]

[0.0022]

[0.0195]

[0.56]

[5.02]

Primary

0.1184***

0.2534***

0.0609

0.1085

−0.0114

−0.0089

−2.91

−2.26

 

[0.0082]

[0.0295]

[0.0673]

[0.0823]

[0.0083]

[0.0201]

[2.18]

[5.21]

Lower secondary

0.2401***

0.3719***

0.1508**

0.1470*

−0.0196**

0.0012

−5.00**

0.29

 

[0.0103]

[0.0307]

[0.0627]

[0.0799]

[0.0085]

[0.0322]**

[2.21]

[8.39]

Upper secondary

0.2880***

0.2434***

0.3250***

0.2626**

0.0131

0.0166

3.34

4.23

 

[0.0104]

[0.0281]

[0.0634]

[0.1041]

[0.0098]

[0.0328]

[2.53]

[8.47]

Post secondary

0.2968***

0.0454***

0.8917***

0.9052***

0.2259***

−0.0023

57.58***

−0.59

 

[0.0106]

[0.0107]

[0.0670]

[0.1367]

[0.0258]

[0.0259]

[7.65]

[6.68]

Constant

  

6.1056***

6.7598***

    
   

[0.1796]

[0.2509]

    

Observations

  

2008

566

    

R-squared in regression

  

0.39

0.30

    

Decomposition

        
 

ln(Y nm) − ln(Y m)

Contrition of X

Contrition of β

Contrition of α

Contrition of β and α

  

Absolute

0.3923***

0.3339***

0.7127**

−0.6542**

0.0585*

   
 

[0.0296]

[0.0274]

[0.2999]

[0.3087]

[0.0330]

   

Percentage

100***

85.10***

181.66**

−166.76**

14.90*

   
 

[0]

[7.85]

[81.02]

[83.69]

[7.85]

   
  1. Note: Non-migrants are individuals who have a registration book in Hanoi or HCMC. Migrants are individuals who do not have a registration book in the cities. Short-term migrants are migrants who have lived in the cities since 2008. Robust standard errors in brackets. Standard errors are estimated using bootstrap with 500 replications (standard errors are corrected for sampling weights and cluster correlation)
  2. *Significant at 10 %; **significant at 5 %; ***significant at 1 %
  3. Source: Estimation from the 2009 UPS
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