• 23 Mar 2023
• 2023

CELG seminar: "Rapid structural change and better jobs: Special Economic Zones, FDI and Labour Markets in Vietnam"

Dear Lecturers, Researchers and Students,

The College of Economics, Law and Government would like to respectfully invite lecturers/ researchers to come and share your experiences at the CELG seminar:

Topic: Rapid structural change and better jobs: Special Economic Zones, FDI and Labour Markets in Vietnam

Presenter: Mr.Tevin Tafese, Research Fellow at the German Institute for Global and Area studies and doctoral student at the University of Göttingen

Time: 10:30 AM (Time in Vietnam), Thursday, March 23rd, 2023

Location: Room B1-204, University of Economics Hochiminh city, 279 Nguyen Tri Phuong St, Ward 5, Dist 10, HCMC

Abstract:
This paper investigates the labour market impacts of special economic zones (SEZs) in a lower middle-income country using a new and unique dataset on the expansion of such zones in Vietnam. Over the past 20 years, Vietnam has established more than 300 SEZs across the country. We use historical satellite images from Google Earth to trace how the built-up area of these zones changed over time (2000-2020). These data are used to construct a district-year measure of exposure to SEZs, which we link it to annual nationally representative Vietnamese labour force surveys. In a difference-in-differences framework with continuous treatment we examine the labour market impacts of SEZ exposure, including on labour market participation, structural change (sectoral and occupational choices), and wages. We find strong effects of SEZs on labour markets with an important gender dimension: In districts that are exposed to SEZs employment is higher, people work less hours, and they move out of agriculture and household enterprises into manufacturing and private as well as foreign firms. These occupational choice changes are particularly strong for women. Further, wage income increases in SEZ-exposed districts, and hourly wages increase even more; again, most so for women. However, the effects of SEZs are largely confined to manufacturing occupations and workers in foreign manufacturing firms. There are only limited and heterogeneous spillovers to domestic firms, which are often partially replaced by foreign firms.

About author:

• Research Fellow at German Institute for Global and Area studies and doctoral student at the University of Göttingen (//www.giga-hamburg.de/en/the-giga/team/tafese-tevin)
• Research coordinator of BMZ-funded project on Sustainable Global Supply Chains (//www.sustainablesupplychains.org/)
• Development economist focusing on topics related to GVCs, digitalization, and labour markets in developing countries

To receive CELG seminar information, please fill out this form: //go.sbdweb.com/CELGSseminarinformation

To present and submit a report, please fill out this form: //go.sbdweb.com/CELGseminarpresenter

Yours faithfully,
CELG