DOI:

Abstract

This study examines the wage differentials between migrant and non-migrant workers. Based on data from Vietnam Migration Survey in 2004, earnings equations with and without Instrumental Variable (IV) are estimated for migrant workers and non-migrant workers. From these results, the study compares the wage structure for migrant workers and non-migrant workers. Oaxaca decomposition of the wage differentials of the two groups workers are carried out. Results, which are controlled for observed characteristics and selection bias, indicate some main points. The wage differentials between non-migrant and migrant workers are mostly due to the difference in structural factors. Besides, there are differences in endowment factors.

Keywords

Migration; Education; Worker's Earnings; Income Gap.