The latest study published in the book "Partial Identification in Econometrics and Related Topics" sheds light on the impact of Internet usage on Vietnam's labor market. Conducted by Associate Professor Vo Tat Thang, HAPRI's Director, and Vu Thi Thuong, HAPRI' Researcher, this study investigates how access to the Internet affects employment patterns and income in a developing economy context.
The researchers employed a Bayesian regression approach, utilizing the Random-walk Metropolis Hastings Markov chain Monte Carlo method to analyze data from the 2018 Vietnamese Household Living Standards Survey. This comprehensive dataset provided insights into household characteristics, income, and employment across the country, allowing for a nuanced examination of the relationship between Internet usage and labor market outcomes.
One of the study's key findings is that Internet usage significantly increases the probability of self-employment in non-farm sectors by 11.8%. This suggests that access to the Internet is opening up new opportunities for entrepreneurship and business activities outside of traditional agricultural work in Vietnam. Additionally, the research confirms the importance of education in shaping labor market outcomes, with each additional year of schooling increasing both the likelihood of non-farm self-employment and hourly wages.
Interestingly, the study reveals that the impact of Internet usage on earnings is not uniform across different demographic groups. Male-headed households and those in urban areas tend to see greater benefits from Internet access in terms of income. This finding highlights the potential for digital technologies to exacerbate existing inequalities if not implemented with careful consideration of diverse population needs.
An unexpected result of the study is the negative association between membership in local associations and both non-farm self-employment and earnings. This finding raises important questions about the current role and effectiveness of these associations in supporting workers and entrepreneurs in Vietnam's evolving economy.
The implications of this research are significant for policymakers in developing countries. It underscores the transformative potential of Internet access in driving shifts in employment patterns and potentially contributing to economic growth. The findings support policies aimed at expanding Internet infrastructure, particularly in rural areas, to promote more diverse economic opportunities. However, the study also highlights the need for a nuanced approach that considers how different groups may benefit from or be disadvantaged by increased digital connectivity.
As developing countries continue to expand their digital infrastructure, understanding the complex interactions between Internet access, employment, and income will be crucial for designing effective economic policies. This study provides a valuable contribution to that understanding in the context of Vietnam's rapidly changing economy, offering insights that may be applicable to other developing nations grappling with similar challenges and opportunities in the digital age.
KEYWORDS:
Internet usage
Self-employment
Labor income
Citation:
Vu, T. T., Vo, T. T., & Van Le, C. (2024). The Impact of Internet Usage on the Labor Market in Vietnam. In Partial Identification in Econometrics and Related Topics (pp. 619-633). Cham: Springer Nature Switzerland. 10.1007/978-3-031-59110-5_41
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