Seminars & Events
APL (Ajiken Power Lunch)
Ian Coxhead (IDE-JETRO): Local labor market effects of FDI: job growth and skills demand in Vietnam
Date & time
Thursday, the 11th of June, 11:00 a.m. to 12:15 p.m.
Venue
Abstract
FDI concentrated in low value-added manufacturing creates jobs in labor-abundant developing economies, but does it extend the ladder toward a knowledge economy? We investigate the net contribution of FDI to employment growth and demand for skills in Vietnam, using labor force survey data from the recent era of rapid investment and GDP growth. Our estimates of the local FDI employment multiplier fall between 0.93 and 1.05. Decomposing the multiplier by industry and worker characteristics reveals that while the skill mix of FDI job creation broadly reflects that of the existing labor force, its indirect effect is to create service-sector jobs mainly in household firms employing workers with mainly below-average educational attainment. The net effect on the skill premium--an important measure of incentives to attain education beyond basic levels--is at best neutral and possibly negative.
Speaker
Moderator
Contact:
Institute of Developing Economies, APL Organizers
E-mail: APL