The impacts of households characteristics on the occupation opportunities of women the case study in vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY VIETNAM ERASMUS UNVERSITY ROTTERDAM INSTITUTE OF SOCIAL STUDIES THE NETHERLANDS VIETNAM – THE NETHERLANDS PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS THE IMPACTS OF HOUSEHOLD’s CHARACTERISTICS ON THE OCCUPATION OPPORTUNITIES OF WOMEN: THE CASE STUDY IN VIETNAM BY NGUYỄN THỊ TỐ VY MASTER OF ARTS IN DEVELOPMENT ECONOMICS HO CHI MINH CITY, JANUARY 2018 CERTIFICATION “I certify the content of this thesis has not already been submitted for any degree and is not being currently submitted for any other degrees I certify that, to be the best of my knowledge, any help received in preparing this thesis and all source used, have been acknowledged in this thesis.” Signature Nguyễn Thị Tố Vy Date 18th January 2018 i ACKNOWLEDGEMENT I would like to send my thanks to my lecturers in Vietnam Netherlands Program who helped me to achieve the knowledge through interesting lessons, usefull assignment, utility seminars and new information during my master studying I greatly express my special thanks to Dr Truong Dang Thuy for all his academic recommendations and supports through finishing thesis process I am gratefull to all the staffs in the Vietnam Netherland Office have delivered me books and necessary documents during the studying process My thanks are also extended to all my classmaters, who have sympathised and shared learning experiences with me through over last two years I deepest thank to all of my family’s members who have congrated and given me a lot of supports during last three years They have transfered my strong motivation into the practical actions to help me finish this course on time ii ABBREVIATIONS VHLSS ………………………………………………… Viet Nam Households Living Standard Survey VND …………………………………………………………………………………………………….Viet Nam Dong GSO ……………………………………………………………………….General Statistic Office of Vietnam BLS …………………………………………………………United State Bureau of Labour Statistics CPS……………………………… The March Current Population Survey of United States SOEP ……………………………………………………… … German Socio-Economic Panel GSO obs …………………………………………………………….…………………………………… … observations WEs ……………………………………………………………………………….women employment status FBS ………………………………………………………………Pakistan Bureaus of Statistics House VWU ……………………………………………………………………………… Vietnam Women Union ABSTRACT This study purposes to examine the factors affect Vietnamese women’s decision to participate in workforce and labor supply Our samples were taken from dataset of Vietnam Household Living Standard Survey in 2014 including women from 15 to 55 years of age in 63 provinces and cities in Vietnam We found that the married women’s employment was strong determined by their individual’s characteristics (age, head of household, particular by Vietnam Women Union) The age and head of household have strong negative impacts on the married women’s occupation opportunity The Women Union has strongly positive impacts on both married women and female group We also found that household size does not have any impact on female group Inversely, it has strong positive impacted on married women group The bigger household size increasing the opportunities of married women’s labor force participation, while the higher number of children reducing this opportunities down The rural married women have much more occupation opportunities than urban married women’s but the urban married women have to work with longer working hours Although increasing husband’s wage was driven the labor force participation of married women down but it can not support to improve the working hours of this women group The married woman’s occupation opportunity was not impacted by her and her husband’s education levels The phenomenon as married women more likely participate in to the economic activities than the unmarried women was also determined in our study TABLE OF CONTENTS CERTIFICATION i ACKNOWLEDGEMENT ii ABBREVIATIONS iii ABSTRACT iv LIST OF TABLES vi CHAPTER 1: INTRODUCTION .1 1.1 Problem statement 1.2 Research objectives 1.3 Scope of the study 1.4 Research structure CHAPTER 2: LITERATURE REVIEW AND EMPIRICAL STUDIES 2.1 Literature review of labour supply models 2.2 Review of empirical studies CHAPTER 3: RESEARCH METHODOLOGY AND DATA 17 3.1 Research methodology 17 3.2 Data 18 3.2.1 Data Source 18 3.2.2 Variables description 20 3.3 Collective household labor frame-work 24 3.4 Approached models 25 CHAPTER 4: RESEARCH RESULTS 30 4.1 Summary Statistics 30 4.2 Research results 58 4.2.1 Results of Probit, Tobit regression, marginal effects for the full sample .58 4.2.2 Results of Probit, Tobit Regression, marginal effects for the sub-sample of married women 63 4.3 Discussions 69 CHAPTER 5: CONCLUSIONS AND POLICY IMPLICATIONS 82 5.1 Conclusions 82 5.2 Policy implications 83 5.3 Limitations of the study 84 REFERENCE 85 APPENDIX .93 LIST OF TABLES Table 1: Definitions Variables Used in the Model 21 Table 2: Summary statistics for the full sample (N = 9,171) 32 Table 3: Summary statistics for the sample of married women (N = 4,077) 35 Table 4: Employment status 38 Table 5: Employment status and household size 40 Table 6: Employment status and number of children 42 Table 7: Employment status and number of old persons 43 Table 8: Results of Probit and Tobit regression with the full sample (N = 9,171) 60 Table 9: Results of Probit and Tobit Regressions for Married Women (N = 4,077) 66 Table 10: Compare Strongest Impacts on Women’s Employment status 77 CHAPTER 1: INTRODUCTION 1.1 Problem statement In the past, Vietnamese family size appeared to be much bigger than that in the present During the decades of 1980s, 1990s, one could easily find a family with 8-10 members or even 12-14 members Nowadays, there are only 3-4 members in an urban family as also in a rural one The over members of households are rarely in the modern Vietnamese society In generally, the traditional extended families were really substituted by popular nuclear families The previous house-wife women in these traditional families were becoming workers, officials, teachers, engineers, business or even leaders, government official However, according to the results of almost labor force investigations in Vietnam and all over the world, the participation rate of female is always lower than that of male in the labor market In the investigation of Vietnam General Statistics Office (GSO) in 2014, the participation rate of male of labor force is 82.5% and participation rate of female of labor force is 73.3% While the ratio of unemployment women is always higher than the ratio of unemployment man: the ratio of youth female unemployment is 7.15% while the ratio of youth male unemployment is 5.51% only These show that the participative opportunities of women in labor force market should be paid attention by government, policy makers, offices and everyone The results from the study of Rahmah Ismail & Noorasiah Sulaiman (2014) showed that even though the entrance of female labor in almost economic sectors is increasing over years, their participation rate is still low in Malaysia It is the similar situation in Sudan (Julliffe, 2004) in which presented female career is less than 50 % out of the total career in these countries The age of married women and the number of children are deeply influenced on the supply of female labor As the rate of entrance of women labor attributed to several reasons, an investigation of determinants of female labor supply is really responsible, as they are important for policy design and the further benefits of females In several researches as Francois (1998), Basu (2006), Atal (2010) have investigated the relationships between the supply of female labor and the process of decision by the household They found that the participation of female in labor workforce is decided by the household and the distribution of power is formed endogenously among the household members The occupation opportunity of women indicates that the contribution of women income to their families will determine the distribution of her power This will increase in the household when she could receive more benefits It means that she has more opportunities to get another job but not house-working only Thus, the decision of woman whether work outside or stay at home as a house-wife is determined by the collective utility of the household and the market wage is as an economic incentive only Moreover, participation of females to the labor force market is always dependent on several factors 1.2 Research objectives The aim of this research is to examine the impacts of household characteristics, especially household size on married women’s occupation opportunities in Vietnam Model of Probit, OLS and Tobit are used to analyze the decision to participate in workforce and the number of working hours of women Several variables are used as independent variables Household size is defined as the number of members in the household in our study Beside, the other characteristics of the household and woman are also analyzed, including: household’s ownership asset, household’s total income, number of children in household, household poverty status, household locality status or woman’s marriage status, woman’s education, woman’s age, her husband’s wage, her husband’s education, her husband’s employment status and other variables This study attempts to answer one main reseach question as follow: • Which factors affect Vietnamese women’s decision to participate in the workforce and labor supply? 1.3 Scope of the study We attempt to examine the employment of female and married women in 63 provinces in Vietnam and base on the dataset taken from Vietnam Household Living Standard Survey (VHLSS) in 2014 Subjects of the study include women from 15 to 55 years of age 1.4 Research structure The proceeds of this study as follows: Chapter one is the introduction Chapter two presents the literature review and empirical theories Chapter three introduces the collected dataset and the methodology we used to analyze the data in this study Chapter four presents the estimation results and discussions parts The conclusion, policy implication and limitation are presented in the section five tab poverty, sum (WEs) Summary of WEs poverty Mean Std Dev Freq 96769025 98493976 17684507 12197641 3745 332 Total 96909492 17308178 4077 tab oldpp60, sum (WEs) Summary of WEs oldpp60 Mean Std Dev Freq 97005208 96626181 1704714 18067645 3072 741 96470588 18488508 255 Total 96909492 17308178 4077 tab children15, sum (WEs) Summary of WEs children15 Mean Std Dev Freq 96930764 97085202 17254446 16828411 1401 1338 96719775 1782022 1067 965 18424094 200 96 19794866 50 18 Total 96909492 17308178 4077 tab locality, sum (WEs) Summary of WEs locality Mean Std Dev Freq 98080877 93960311 13722018 23832355 2918 1159 Total 96909492 17308178 4077 tab illness, sum (WEs) illness Summary of WEs Mean Std Dev Freq 96808181 97258297 97368421 96969697 1 17580955 16341318 16077942 17407766 0 3227 693 114 33 Total 96909492 17308178 4077 100 tab areacode, sum (WEs) Summary of WEs areacode Mean Std Dev Freq 94202899 99020675 23382987 09852872 828 919 98356808 1272042 852 98275862 13035699 348 95249406 2129715 421 95909732 19820459 709 Total 96909492 17308178 4077 tab age, sum (WEs) Summary of WEs Mean Std Dev age Freq 16 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 1 1 875 1 95454545 1 98947368 99242424 98387097 98275862 1 99363057 98507463 96732026 97810219 99324324 95774648 97159091 98192771 96527778 97315436 98089172 97777778 96575342 9556962 93288591 92666667 96376812 91803279 90441176 86111111 0 0 35355339 0 21070705 0 10259784 08703883 12648281 13073429 0 07980869 12170929 1783809 14688698 08219949 2018791 16661255 13361598 18371437 16217728 13734374 14795454 18248792 20642349 2510634 26155618 18754738 27544596 2951127 34744282 8 13 21 24 44 50 71 65 95 132 124 116 120 124 157 153 134 153 137 148 142 176 166 144 149 157 135 146 158 149 150 138 122 136 108 Total 96909492 17308178 4077 116 tobit WORKHOURS hhsize attendsch children15 oldpp60 illness totalinc locality assets poverty a > veragecapinc husbandwk husbandwages hprimarysch hsecondsch hhighsch hhigherhsch vwunion headh > age areacode primarysch secondarysch highsch higherhsch, ll Tobit regression Number of obs LR chi2(24) Prob > chi2 = = = 4077 132.85 0.0000 Log likelihood = -17691.761 Pseudo R2 = 0.0037 WORKHOURS Coef Std Err t P>|t| [95% Conf Interval] hhsize attendsch -6.015734 8023829 3.201552 3.18145 -1.88 0.25 0.060 0.801 -12.29253 -5.435007 2610662 7.039773 children15 oldpp60 2.237392 -3.443975 3.868439 4.535567 0.58 -0.76 0.563 0.448 -5.346874 -12.33618 9.821658 5.448229 illness totalinc -6.572261 002063 4.653866 0010308 -1.41 2.00 0.158 0.045 -15.69639 0000421 2.551874 004084 locality assets 13.71488 20.75531 6.63059 13.89065 2.07 1.49 0.039 0.135 7152776 -6.478002 26.71448 47.98863 poverty averagecapinc 1.234226 -.0085858 10.62096 0041082 0.12 -2.09 0.907 0.037 -19.58869 -.0166401 22.05714 -.0005314 husbandwk husbandwages 57.85986 -.0000783 5.8565 0011321 9.88 -0.07 0.000 0.945 46.3779 -.0022978 69.34182 0021412 hprimarysch hsecondsch 4.04212 -9.460778 8.661515 9.390253 0.47 -1.01 0.641 0.314 -12.93921 -27.87083 21.02345 8.949278 hhighsch -8.343512 11.05936 -0.75 0.451 -30.02593 13.33891 hhigherhsch vwunion 6794953 -4.692445 14.93228 5.914804 0.05 -0.79 0.964 0.428 -28.59598 -16.28871 29.95497 6.90382 headh age 2.452979 -.433382 9.035837 3266882 0.27 -1.33 0.786 0.185 -15.26223 -1.07387 20.16819 2071064 areacode primarysch -2.258016 2.189266 1.760634 8.335084 -1.28 0.26 0.200 0.793 -5.709826 -14.15208 1.193794 18.53061 secondarysch highsch 6.889419 13.16548 9.387283 12.72106 0.73 1.03 0.463 0.301 -11.51481 -11.77479 25.29365 38.10575 higherhsch _cons -4.261935 64.2201 12.76432 25.90375 -0.33 2.48 0.738 0.013 -29.28703 13.43451 20.76316 115.0057 /sigma 159.3977 2.484485 154.5267 164.2687 Obs summary: 1555 left-censored observations at WORKHOURS sets illness areacode age marriage headh vwunion primarysch secondarysch highsch higherhsch, l > l Tobit regression Number of obs LR chi2(19) Prob > chi2 Pseudo R2 Log likelihood = -39691.245 WORKHOURS Coef Std Err hhsize attendsch children15 oldpp60 poverty totalinc averagecapinc locality assets illness areacode age marriage headh vwunion primarysch secondarysch highsch higherhsch _cons 2.026888 -.1414306 -3.583468 -1.867062 -5.568928 -.000469 0016439 3.27789 4.326641 1.181128 -2.759193 -.5002472 12.46126 669086 -2.270554 2238081 -9.133192 -2.336579 -7.986141 84.41126 1.804757 2.444859 2.899191 3.367946 7.576577 0002587 0009351 4.244475 9.2605 3.192052 1.126907 2054215 5.066589 6.377775 4.372262 6.043942 6.010433 7.108194 7.217277 14.99527 /sigma 162.0486 1.695618 Obs summary: 3530 5631 t P>|t| 1.12 -0.06 -1.24 -0.55 -0.74 -1.81 1.76 0.77 0.47 0.37 -2.45 -2.44 2.46 0.10 -0.52 0.04 -1.52 -0.33 -1.11 5.63 0.261 0.954 0.216 0.579 0.462 0.070 0.079 0.440 0.640 0.711 0.014 0.015 0.014 0.916 0.604 0.970 0.129 0.742 0.269 0.000 = = = = 9161 24.00 0.1960 0.0003 [95% Conf Interval] -1.51084 -4.933901 -9.26653 -8.468989 -20.42071 -.0009761 -.0001892 -5.042229 -13.82601 -5.076006 -4.968183 -.9029193 2.529612 -11.83278 -10.84116 -11.62367 -20.91498 -16.27023 -22.13362 55.01719 5.564615 4.65104 2.099594 4.734866 9.282857 0000382 003477 11.59801 22.47929 7.438263 -.5502032 -.0975751 22.39291 13.17095 6.300057 12.07128 2.648599 11.59707 6.161336 113.8053 158.7248 165.3724 left-censored observations at WORKHOURS illness areacode age vwunion headh primarysch secondarysch highsch higherhsch Iteration 0: log likelihood = -1739.5711 Iteration 1: log likelihood = -1560.2558 Iteration 2: log likelihood = -1552.9884 Iteration 3: log likelihood = -1552.9733 Iteration 4: log likelihood = -1552.9733 Probit regression Log likelihood = -1552.9733 Std Err z Number of obs = 6491 LR chi2(18) = 373.20 Prob > chi2 = 0.0000 Pseudo R2 = 0.1073 WEs Coef P>|z| [95% Conf Interval] hhsize attendsch -.11038 1703328 0232695 0386071 -4.74 4.41 0.000 0.000 -.1559873 0946644 -.0647727 2460013 children15 -.0272997 0433144 -0.63 0.529 -.1121942 0575949 oldpp60 0627034 0461084 1.36 0.174 -.0276675 1530742 poverty -.0541106 1112151 -0.49 0.627 -.2720882 163867 totalinc -6.00e-07 2.94e-06 -0.20 0.838 -6.37e-06 5.17e-06 averagecapinc 0000102 0000118 0.86 0.388 -.0000129 0000333 locality -.4602912 0548257 -8.40 0.000 -.5677476 -.3528349 assets -.1348051 1259113 -1.07 0.284 -.3815868 1119766 illness -.113269 0389515 -2.91 0.004 -.1896125 -.0369254 areacode -.1372113 0153682 -8.93 0.000 -.1673324 -.1070903 age 0063157 0027501 2.30 0.022 0009257 0117057 vwunion 3655484 0604689 6.05 0.000 2470315 4840653 headh -.0636959 0832645 -0.76 0.444 -.2268913 0994995 primarysch 1253159 0766641 1.63 0.102 -.0249429 2755747 secondarysch 0092862 0802524 0.12 0.908 -.1480057 166578 highsch -.1724913 0957291 -1.80 0.072 -.3601168 0151342 higherhsch 1235664 0933859 1.32 0.186 -.0594665 3065993 _cons 2.099606 2144044 9.79 0.000 1.679381 2.519831 sum Variable Obs Mean Std Dev Min Max wpi hpi C WEs hhsize 493 493 493 493 18350.87 10118.45 579 35771 9127789 3.484787 2824454 1.744408 1 1 11 attendsch children15 oldpp60 poverty totalinc 493 493 493 493 493 1.296146 862069 2454361 0689655 7801.231 1.11235 9398805 5690211 2536529 7927.034 0 0 621.0833 101833.3 averagecap~c locality assets illness areacode 493 493 493 493 493 2496.531 3144016 9513185 2251521 3.373225 2105.647 4647487 21542 6148701 1.763062 171.375 0 21041.67 1 age marriage vwunion headh primarysch 493 493 493 493 493 43.357 4523327 7160243 3407708 9.311804 4982282 4513832 4744498 17 0 0 55 1 secondarysch highsch higherhsch 493 493 493 2697769 0770791 1034483 4442946 2669878 3048528 0 1 probit WEs hhsize attendsch children15 oldpp60 poverty totalinc averagecapinc locality assets > illness areacode age marriage vwunion headh primarysch secondarysch highsch higherhsch note: marriage omitted because of collinearity Iteration 0: log likelihood = -145.95801 Iteration 1: log likelihood = -123.59047 Iteration 2: log likelihood = -121.66522 Iteration 3: log likelihood = -121.6469 Iteration 4: log likelihood = -121.64688 Iteration 5: log likelihood = -121.64688 Probit regression Number of obs LR chi2(18) Prob > chi2 Pseudo R2 Log likelihood = -121.64688 WEs Coef hhsize attendsch children15 oldpp60 poverty totalinc averagecapinc locality assets illness areacode age marriage vwunion headh primarysch secondarysch highsch higherhsch _cons 0182142 2859583 -.4564283 2802619 528359 -.0000161 0000378 -.3800577 -.0499459 -.0865613 -.1521056 -.0359442 5527498 3027309 002662 -.1497104 3918096 -.3436353 3.353994 Std Err .0910632 1778339 1906972 1963935 5475677 0000122 0000555 199892 3893323 148384 0586825 011551 (omitted) 2291087 2693792 2544448 2797683 5547985 3716347 7918647 z P>|z| = = = = 493 48.62 0.0001 0.1666 [95% Conf Interval] 0.20 1.61 -2.39 1.43 0.96 -1.32 0.68 -1.90 -0.13 -0.58 -2.59 -3.11 0.841 0.108 0.017 0.154 0.335 0.186 0.496 0.057 0.898 0.560 0.010 0.002 -.1602664 -.0625898 -.830188 -.1046622 -.544854 -.00004 -.0000711 -.7718388 -.8130233 -.3773886 -.2671211 -.0585837 1966949 6345064 -.0826687 665186 1.601572 7.79e-06 0001467 0117234 7131314 204266 -.0370901 -.0133046 2.41 1.12 0.01 -0.54 0.71 -0.92 4.24 0.016 0.261 0.992 0.593 0.480 0.355 0.000 1037049 -.2252427 -.4960405 -.6980462 -.6955755 -1.072026 1.801967 1.001795 8307044 5013646 3986253 1.479195 3847554 4.90602 ... cross-derivative condition and the validity of Pareto affection The results show that the main determinant of the household labour supply in all of researched region in this paper including: the women and their... the distribution of power is formed endogenously among the household members The occupation opportunity of women indicates that the contribution of women income to their families will determine... mentioned, we study the decision of women (in the age group of 15-55 years) to participate in labor force activities and the factors that impact on the decision of women (also in the age group of