Fukase, Emiko2013-09-042013-09-042013-04https://hdl.handle.net/10986/15565This paper explores how the expansion of labor-intensive manufacturing exports resulting from the United States-Vietnam Bilateral Trade Agreement in 2001 translated into wages of skilled and unskilled workers and the skill premium in Vietnam through the channel of labor demand. In order to isolate the impacts of trade shock from the effects of other market-oriented reforms, a strategy of exploiting the regional variation in difference in exposure to trade is employed. Using the data on panel individuals from the Vietnam Household Living Standards Surveys of 2002 and 2004, and addressing the issue of endogeneity, the results confirm the existence of a Stolper-Samuelson type effect. That is, those provinces more exposed to the increase in exports experienced relatively larger wage growth for unskilled workers and a decline of (or a smaller increase in) the relative wages of skilled and unskilled workers. During the period 2000-2004, the skill premium increased for Vietnam's economy as a whole in the sample of panel individuals. Thus, the Stolper-Samuelson type effect appears to have mitigated but did not outweigh the impacts of other factors that contributed to the rise in the skill premium.en-USCC BY 3.0 IGOACCOUNTINGAGRICULTURAL TRADEAGRICULTURAL TRADE LIBERALIZATIONAGRICULTUREANTIDUMPINGANTIDUMPING DUTIESAPPARELAVERAGE WAGEBILATERAL TRADECAPITAL FLOWSCAPITAL GOODSCOBB-DOUGLAS PRODUCTION FUNCTIONCOEFFICIENT ESTIMATECOMPARATIVE ADVANTAGECOUNTRY MARKETSCREATING JOBDEFLATORSDEMAND SHOCKSDEVELOPED COUNTRIESDEVELOPING COUNTRIESDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDOMESTIC PRODUCTIONDOWNWARD BIASECONOMIC GROWTHECONOMIC INTEGRATIONECONOMIC POLICYECONOMIC SECTORSECONOMIC STRUCTUREECONOMIC THEORYECONOMICS RESEARCHEDUCATIONAL ATTAINMENTELASTICITYELASTICITY OF LABOR SUPPLYELECTRONICS INDUSTRYEMBARGOEMPLOYMENTEMPLOYMENT COMPOSITIONEMPLOYMENT EFFECTEMPLOYMENT EFFECTSEMPLOYMENT GENERATIONEMPLOYMENT GROWTHEMPLOYMENT LEVELEMPLOYMENT SHAREEXOGENOUS VARIABLESEXPORT GROWTHEXPORT INTENSITYEXPORT MARKETSEXPORT OPPORTUNITIESEXPORT ORIENTATIONEXPORT PATTERNSEXPORT PERFORMANCEEXPORT PROCESSINGEXPORT PRODUCTSEXPORT QUOTASEXPORT SECTOREXPORT SECTORSEXPORT SUBSIDYEXPORT-ORIENTED ACTIVITIESEXPORTERSEXPORTSFINAL GOODSFIRM LEVELFOREIGN DIRECT INVESTMENTFOREIGN FIRMSFORMAL SECTOR WORKERSFREE TRADEFREE TRADE AREAFULL EMPLOYMENTGDPGENERAL AGREEMENT ON TARIFFSGENERAL EQUILIBRIUMGENERAL EQUILIBRIUM MODELGLOBALIZATIONGROSS DOMESTIC PRODUCTGROSS OUTPUTGROWTH RATEHIGH WAGEHOUSEHOLD ENTERPRISESHOUSEHOLD INCOMEHOUSEHOLD SURVEYSHUMAN CAPITALIMPACT OF TRADEIMPACT OF TRADE LIBERALIZATIONIMPACT OF TRADE REFORMSIMPORT PENETRATIONIMPORT PROTECTIONIMPORTSINCOME INEQUALITYINDUSTRIAL POLICYINDUSTRIAL SECTORINDUSTRIALIZATIONINFORMAL SECTORINTERNATIONAL ECONOMICSINTERNATIONAL MARKETINTERNATIONAL MARKETSINTERNATIONAL STANDARDINTERNATIONAL TRADEJOB CREATIONJOBSLABOR COSTSLABOR DEMANDLABOR INTENSITYLABOR MARKETLABOR MARKET REFORMSLABOR MARKETSLABOR MOBILITYLABOR MOVEMENTSLABOR REALLOCATIONLABOR RELATIONSLABOR SUPPLYLABOR-INTENSIVE GROWTHLABOURLIVING STANDARDSMARKET ACCESSMARKET ECONOMYMARKET INTEGRATIONMULTIPLIER EFFECTNON-TARIFF BARRIERSNORMAL TRADE RELATIONSOCCUPATIONOCCUPATIONSOIL PRICESOUTSOURCINGPREVIOUS STUDIESPRIMARY EDUCATIONPRODUCT PRICESPRODUCTION WORKERSPRODUCTIVE FIRMSPRODUCTIVITYQUANTITATIVE RESTRICTIONSREAL WAGEREAL WAGESREGIONALISMSERVICE SECTORSKILL PREMIUMSKILLED OCCUPATIONSPECIALIZATIONSUNK COSTSSURPLUS LABORTARIFF ACTTARIFF BARRIERSTARIFF CHANGESTARIFF RATETARIFF RATESTARIFF REDUCTIONTARIFF REDUCTIONSTARIFF SCHEDULETOTAL EMPLOYMENTTOTAL LABOR FORCETOTAL WORKERSTRADABLE GOODSTRADE AGREEMENTTRADE COSTSTRADE DATATRADE LIBERALIZATIONTRADE OPENNESSTRADE PATTERNTRADE PATTERNSTRADE POLICIESTRADE POLICYTRADE POLICY REFORMSTRADE REFORMTRADE REFORMSTRADE REGIMESTRADE SHOCKSTRANSITION ECONOMIESUNSKILLED LABORUNSKILLED WORKERUNSKILLED WORKERSURUGUAY ROUNDVALUE ADDEDVALUE OF OUTPUTWAGE CHANGESWAGE CONVERGENCEWAGE DIFFERENTIALSWAGE EMPLOYMENTWAGE GAPWAGE GROWTHWAGE INEQUALITYWAGE LEVELSWAGE PREMIUMWAGE SECTORWAGE STRUCTUREWELFARE GAINSWHITE-COLLAR OCCUPATIONSWORKING HOURSWORLD TRADEWORLD TRADE ORGANIZATIONWTOWorld Bank10.1596/1813-9450-6419