Factors Associated with Participation of Vietnamese Informal Workers in Voluntary Social Insurance Scheme

Abstract

This study estimated impacts of demographic and employment factors on the voluntary social insurance participation of Vietnamese informal workers by using data from the Labour Force Survey and Heckman’s two-step probit selection model for four groups of informal workers. The results showed that age, the highest education level, number of school-age children in household, number of household members participating in the social insurance system, job position and income level of informal workers had significant impacts on their decision to participate in the scheme. Moreover, these impacts were different for informal workers when considering their job positions. Based on the findings, this study recommended various policies considering the aforementioned characteristics of informal workers.