Abstract
PurposeThis paper examines the effects of sub-national union coverage on the youth's labor market outcomes.Design/methodology/approachIn the context of the private business sector in Vietnam, this study link individual labor market data with union coverage at provincial level in the period 2013–2016 to investigate the effects of sub-national union coverage on the youth's labor market outcomes. Contingent on the outcome variable, we use the OLS and probit model that control for diverse individual characteristics, year- and industry-fixed effects, and particularly control for selection bias in the labor market.FindingsThe empirical results show that the union coverage is positively associated with a wide range of the youth's labor market outcomes, including employment status, wage rate, work hour, and job formality. Also, the coverage is complementary to individual labor contract in determining the youth's wage rate.Practical implicationOur empirical results indicate positive associations between union coverage and the youth's multi-dimensional labor market outcomes, which contribute to this young age cohort's smooth school-to-work transition, provided that the role of trade union is challenged both in developing and developed countries.Originality/valueThis study provides an in-depth study on the interplay between trade union and the youth's labor market outcomes that contributes to the literature of labor market institutions and youth employment policies in a dynamic transitional economy of Vietnam.
Highlights
There are a large number of studies on the effect of trade union, or collective bargaining, on wages and employment, but little research has been undertaken on the effect of trade union on the youth’s multi-dimensional labor market outcomes
In this study we examine the relationship between trade union coverage and the youth’s labor market outcomes in Vietnam during the period 2013–2016
This study examines the effects of trade union coverage on the youth’s various labor market outcomes, including employment status, wage rate, work hours, and job formality
Summary
There are a large number of studies on the effect of trade union, or collective bargaining, on wages and employment (for example; to name a few, Kahn, 2000; Card, 2001; Bryson and Blanchflower, 2003; Yao and Zhong, 2013 and Torm, 2018), but little research has been undertaken on the effect of trade union on the youth’s multi-dimensional labor market outcomes. What are the effects of trade union coverage on the youth’s multi-dimensional labor market outcomes, including employment status, wage rate, work hour and job formality? A deeper study on the effect of union coverage at the sub-national level on the youth’s various labor market outcomes is believed to contribute to the related literature of labor market institutions and youth employment policies in a dynamic transitional economy of Vietnam.
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
