The impact of labor structure transfer on productivity growth in Vietnam

Abstract

This study used Shift-Share Analysis (SSA) method to find out the impact of labor structure transfer on labor productivity growth in Vietnam. Unlike other studies in Vietnam, the authors considered not only “static” shift effects but also “dynamic” shift effects for 9 economic sectors. The results showed that in the period of 1995- 2013, the transfer of labor contributed about 40% to the overall productivity growth in Vietnam annually. The contribution was also different across sectors, and such sectors as: industrial processing; building; trade, hotels and restaurants; and finance, credit, real estate contributed strongly to the growth of the overall productivity of the economy.