THÔNG TIN TÀI LIỆU
1 The thesis was completed at: MINISTRY OF EDUCATION AND TRAINING NATIONAL ECONOMICS UNIVERSITY - NATIONAL ECONOMICS UNIVERSITY Science instructor: Assoc.Prof.Dr ĐOAN THI THU HA BUI THANH HA Reviewer 1: IMPACTS OF LABOR WITH VOCATIONAL TRAINING ON MULTI-DIMENSIONAL POVERTY REDUCTION IN THE NORTHWEST Reviewer 2: Reviewer 3: Major: MANAGEMENT SCIENCE Code: 9310110 The thesis is defended by Thesis grading Committee National Economics University PHD THESIS SUMMARY At: Date month The thesis can be found at: National Library National Economics University Library HA NOI, 2021 2021 INTRODUCTION training, there can be contribution to develop the society, increase work productivity, improve income and create more jobs Then, the objective of sustainable poverty reduction can be achieved This study, therefore, clarifies the interactive relationship between labor with vocational training and multi-dimensional poverty reduction in an underdeveloped area like the Northwest It works on the topic entitled “Impacts of labor with vocational training on multi-dimensional poverty reduction in the Northwest” The research findings would point out short-term and long-term impacts of labor with vocational training on multidimensional poverty reduction in the Northwest In particular, there should be clarification of impacts of labor with vocational training on job opportunities, labor income and accessibility to basic social services (healthcare, education, housing, information, etc) of local households The research findings can also provide evidences to reflect how previous theoretical models can be applied into a new context Especially, in current setting, when the identification of poverty level is dependent on two criterion, namely income-based poverty (general poverty) and multi-dimensional poverty according to Decision No 59/2015/QĐ-TTg by the Prime Minister Significance of the thesis Theories on human resource by Becker (1975) stated that vocational training would create skills to improve productivity of workers This theory also confirmed the relationship between vocational training and poverty, of which, the former should be one of useful tools to reduce the latter This relation could be found out in both micro and macro levels based on poverty rate and educational background In fact, thanks to vocational training, labor can be so skillful that they might have new job opportunities to increase their income (Nickell, 2004) In addition, Krueger (1983) argued that poverty should be rooted from impacts of real income of labor with neither skills nor financial resource It was demonstrated that human should have been equipped with essential skills to take part in socio-economic development Labor, in fact, would build up a huge number of learners in vocational training centers As a matter of fact, vocational training meant that llabor’s working skills have been improved thanks to learning process High quality labor would promote socio-economic growth, create job opportunities, enhance work productivity, improve living conditions and reduce poverty in rural areas (Zhang Cong Cheng, 2008) Vocational training would be the best way to handle poverty-related problems because it should help learners have higher income (Nasir Muhammad, 2016) The workforce in Northwest region in the period of 2014 - 2018 underwent few changes Most of labor came from rural areas, which accounted for more than 82% of total labor in the regional and seemed to increase year by year Additionally, according to poverty line based on multi-dimensional approach, in the period of 2016-2020, this region had highest number of poor households and near poor ones with 29,14% and 10,69% respectively Then, this region was regarded as nationwide core poverty Espcially, there have been certain provinces with 30% of poor households In the past years, poverty reduction in the Northwest has reflected various advantages In there, all provinces have well integrated various supporting funds to carry out solutions to poverty reduction Different high quality agricultural models have been established, which has gradually built up product area in the Northwest However, poverty reduction in this region has been mainly dependent on policies by the Government Actually, local residents have been neither active nor self-concious about overcoming poverty There have been drawbacks in vocational training for labor; job seeking support, job self-creation; as well as difficulties in helping local residents guarantee their own income and living condition, which would contribute to poverty reduction, especially in remote areas and minor ethnic places Therefore, if there is imporovement in the number of labor with vocational Research objectives 2.1 General objectives: This research worked on how jobs and income of labor with vocational training (labor being trained with vocational knowledge) has put impacts on multidimensional poverty It applied theories on human resources and economic growth; those on human resource and labor income as well as those on human resource in poverty redution 2.2 Specific objectives: - Systemizing theoretial basis for the impacts of labor with vocational training (labor being trained with vocational knowledge) on multi-dimensional poverty reduction through labor’s jobs and income - Establishing appropriate research models and research methods to analyze, and evaluate the research subject on an objective manner - Providing an analysis and evaluation on the real impacts of labor with vocational training on multi-dimensional poverty reduction in the Northwest in the period of 2014 – 2018 This was clarified based on the rate of labor with vocational training having jobs and income, which would help in measuring its impacts on multi-dimensional poverty reduction - Proposing solutions to vocational training for local authorities in the Northwest so that they can work on poverty reduction in the period of 2020 - 2025 Research subject and research scope 3.1 Research subject: Impacts of labor with vocational training (the number of labor being trained with vocational knowledge at household level) on multi-dimensional poverty reduction based on labor’s jobs and income in the Northwest 3.2 Research scope * In regard of contents: - Reality of labor with vocational training in the Northwest; - Impacts of labor with vocational training on labor’s jobs and income in the Northwest - Impacts of labor with vocational training on multi-dimensional poverty reduction in the Northwest - Multi-dimensional poverty was identified according to the Decision No 59/2015/QĐ-TTg by the Prime Minister on issuing poverty line for multi-access to poverty in the period of 2016 - 2020 + Regarding the shortage of access to basic social services, there were specific ones in the research, including healthcare, education, housing, water, sanitation and hygience as well as information + Regarding indicators for the measurement of the above shortage, there were 10 ones, including access to healthcare service; health insurance; academic background of the adults; schooling status of children; quality of housing; housing area per head; water resource for daily use; toilet; telecommunication; assesst for information access * In regard of space: The thesis worked on the Northwest region, with representatives namely Điện Biên, Lai Châu, Sơn La, Hồ Bình, Lào Cai, n Bái These are the core poor areas nationwide with great number of poor households, huge dependence on agriculture, large propotion of rural labor with low income * In regard of time: The data was collected for the period of 2014 - 2018 Research questions In order to achieve the research objectives, the following questions were given: + Research question 1: How has labor with vocational training put impacts on job opportunities and income of labor in the Northwest? + Research question 2: How has labor with vocational trainined put impacts on income of local residents in the Northwest? + Research question 3: How has labor with vocational training put impacts on multi-dimensional poverty reduction in the Northwest? New contributions of the thesis Vocational training has a direct impact on multi-dimensional poverty reduction in the Northwest The more workers in a household receive vocational training, the more likely they are to fall into poverty; Next to labor through vocational training has a strong impact on employment and income of households in the Northwest, through vocational training will create high-quality human resources CHAPTER 1: LITERATURE REVIEW 1.1 Studies on impacts of vocational training on employment International and domestic studies showed that: Social capital created jobs for labor in all regions, among which, urban ones accounted for a large proportion (Norwood, 2001) It was demonstrated that impacts of social capital’s characteristics on job quality were minimal compared with human resource Improving vocational training and labor occupational skills should be the most effective measures to promote employment and reduce unemployment In addition, he pointed out that poor working skills made up the reason for dismissal and unemployment in cities and provinces Therefore, it should be emphasized that vocational training would be the key to enhance relabor for the unemployed Investment into vocational training would help in increasing personal skills and working capabilities as well as creating business opportunities for both men and women 1.2 Studies on the impact of vocational training on employment of workers International and domestic studies showed that: Theories on human resource confirmed that vocational training would create working skills with highworkmanship in order to improve productivity Normally, there is a big gap in regard of income between labor with and without vocational training Salary has been paid based on working productivity and quality; employers should pay in a fair manner regardless of gender in the case that both men and women the same job Education level at all levels reflects the correlation of workers with higher education (experiences and workmanship) which has a positive impact on higher wages 1.3 Studies on impacts of vocational training on poverty reduction and multidimensional poverty International and domestic studies showed that: Education and vocational training might help in increasing income by improving productivity, which would considerably reduce poverty Impacts of education and vocational training on poverty are reflected through not only income or productivity (direct impacts) but also other external factors (indirect impacts), for example, decrease in infant mortality, better decision, better health and more effective parental education 1.4 Research gap There have been few studies on this field in Vietnam Especially, the approach to multi-dimensional poverty has been put into research and implemented since the issue of the Decision No 59/2015/QĐ-TTg dated November, 19th 2015 by the Prime Minister about multi-diomensinal approach to poverty threshold in the period of 2016 – 2020 Also, the measurement scale of multi-dimensional poverty in Vietnam is different from that in the world, which is due to the plus of income dimension CHAPTER THEORETICAL BASIS ON LABOR WITH VOCATIONAL TRAINING AND POVERTY REDUCTION 2.1 Vocational training and labor with vocational training 2.1.1 Vocational training and mode of training 2.1.1.1 Vocational training From my personal viewpoint, vocational traning is understood as the following "Vocational training is providing labor with occupational capabilities (knowledge, skills and attitude) so that they can work on their own or to be employed " 2.1.1.2 Mode of training Law on vocational training (2006) regulated three levels namely pre-intermediate training, vocational school and vocational college In terms of traning mode, there should be both full-time education and regular training 2.1.2 Labor with vocational training Defintion "Labor with vocational training refers to workers having completed at least one training program of a specific occupation in a particular training institution (includingmanufaturing business), who are qualifiedwith certificate and degree or accepted according to current regulations " 2.2 Poverty and multi-dimensional poverty reduction 2.2.1 General viewpoint about poverty 2.2.1.1 Worldwide viewpoint about poverty - Definition of poverty: “Poverty is the status that a part of population cannot afford their fundamental demands and have lower living standard than the average one on all aspects of the community” 2.2.1.2 Vietnam’s viewpoint about poverty “Poverty is the status that a part of population can neither get benefits from nor satisfy their basic demands, which are recognized by the society and differ from one province to another due to specific socio-economic conditions” This thesis used the definition of pocerty given by Trần Xuân Cầu and Mai Quốc Chánh (2008), demonstrating that “Poverty is the status that a part of population can partially satisfy basic demands of their life and have lower living conditions than the average one of the community on all aspects” 2.2.2 Perspectives on multidimensional poverty Mesaurement scales for multi-dimensional poverty by Alkire and Foster (AF) and Sabina Alkire and James Foster have been researched and applied by different nations depening on their own conditions From the above concepts, it can be conceptualized as follows: "Multidimensional poverty is a situation where people not meet at a minimum the basic needs in life" 2.2.2.1 Approaches to measurement scales of multi-dimensional poverty in Vietnam In general, approaches to multi-dimensional poverty in Vietnam have been based on human rights to be satisfied with basic demands, which are equally important and should be supplied all to guarantee a normal life 2.2.2.2 Measurement of multi-dimensional poverty Methodology for the measurement of multi-dimensional poverty in Vietnam is derived from the methods given by Alkire&Foster,which was developed by Oxford Poverty and Human development Initiatives (OPHI) 2.2.2.3 Limited dimensions and multi-dimensional poverty threshold The selection of these limited dimensions depends on specific nations In the case of Vietnam, the selected ones are based on basic demands as regulated in the Constituion 2013, Resolution15-NQ/TW, and Resolution 76/2014/QH13 There are dimensions in total, covering healthcare, education, living conditions, jobs and information access 2.2.2.4 Multi-dimensional poverty threshold If the amount of lack in a household is much lower than the lacking level, it is socalled multi-dimensional poverty threshold According to international multidimensional poverty threshold, a household lacking 1/3 and above of total score on lacking, it is recognized as multi-dimensional poverty 2.3 Framework for analyzing the impact of vocational training workers on multidimensional poverty reduction 2.3.1 The theoretical basis for the impact of vocational training workers on multidimensional poverty reduction 2.3.1.1 Theories on human capital and economic growth There are three important factors having influence on productivity They are physical capital, human capital, and technological progress 2.3.1.2 Theories on human capital and income of labor Theory on human capital demonstrated that “all behaviors of humans derive from their demands for economic benefits for freelancers in a competitive market Other kinds of symptoms are uncovered in the scale and variance of this theory” Investment into human capital can create prosperity for a nation because: firstly, education brings about jobs and income for each person (personal benefits) secondly, human capital promotes economic growth thirdly, human capital contributes to social sustainability 2.3.1.3 Theories on human capital in poverty reduction Theories on human capital also confirmed that there is relationship between vocational training and poverty, which implies that the former is the facility for the latter 2.3.2 Factors affecting the impact of vocational training workers on multidimensional poverty reduction - Proactiveness of local authorities in implementing vocational training and poverty reduction policies - People's initiative in vocational training to rise out of poverty 2.4 Research model on the impact of vocational training workers on multidimensional poverty reduction The following framework is based on the identification of poor income to calculate poverty rate in the Northwest There is the combination of both qualitative and quantitative methods to analyze impacts of labor with vocational training on multidimensional poverty reduction in this region normally, the number of female labor was bigger than that of male Particularly, in 2017, the number of female labor was about 80.453 people higher than that of male However, in 2018 that discrepancy was about 21.795 people 3.1.2.3 In regard of age: The workforce of the Northwest during 2014-2018 was mainly young people, the number of those under 35 years old accounted for 50% of total labor in the region This made up potential force, belonging to the gold age in the labor structure which could help developing the economy of the region 3.1.2.4.In regard of technical competence: Although the workforce in the Northwest region was huge, its technical background was not good Most labor had no technical profound (accounting for more than 83% of total labor in the region) 3.1.2.5 In regard of job status: If the workforce in the period 2014-2018 had been devided according to job status, it would be clear that most labor got a job, only 1% of people in the working age was unemployed 3.2 Research methods for impacts of labor with vocational training on multi-dimensional poverty reduction 3.2.1 Primary data collection methods: collected through survey in the Northwest - Survey areas: Northwestern provinces: Điện Biên, Lai Châu, Sơn La, Hịa Bình, Lào Cai, Yên Bái 3.2.2 Secondary data collection methods: widely released documents 3.2.3 Methods of analyzing and processing research data This thesis used bot quantitative and qualitative methods to research the above theoretical frame - Documentary review: studying, reviewing and synthesizing related documents (from website, journal articles, etc) - Qualitative methods: carrying out in-depth interview, group discussion with participants to evaluate vocational training for labor, advantages and disadvantages, practicality of labor, as well as the role of vocational training in employment, income and multi-dimensional poverty reduction in the Northwest - Quantitative methods: using estimations of economic models to analyze impacts of vocational training on job opportunities, income and multi-dimensional poverty reduction of labor in the Northwest - Data processing methods: the qualitative data was collected based on specific contents and issues to provide analysis and assessment of vocational training and to deal with job problems and poverty reduction in the Northwest The quantitative data was processed by statistical methods with comparison, analysis and consolidation where relevance The application of quantitative models through Stata 14 reflected the relationship between vocational training and job opportunities, income as well as poverty reduction in the Northwest Poverty reduction Labor with vocational training • Jobs • Income - Proportion and number of labor with vocational training Control elements - Household characteristics - Labor characteristics Diagram 2.1 Research model CHAPTER 3: METHODS AND ACCESSORIES TO RESEARCH IMPACTS OF LABOR THROUGH VOCATIONAL TRAINING TO MULTI-DIMENSIONAL POVERTY REDUCTION 3.1 Rationales for the selection of research model and research methods 3.1.1 Natural, socio-economic features of the Northwest The Northwest covers the following provinces: Điện Biên, Lai Châu, Sơn La, Hồ Bình, Lào Cai, n Bái 3.1.2 Workforce features of the Northwest 3.1.2.1 In regard of areas: The workforce engages people from 15 years old and above In the period of 2014-2018, the workforce in this region experienced few changes, most of which took place in rural areas with the number of rural labor reaching more than 82% of total labor in the region and increasing year by year 3.1.2.2 In regard of gender: There were no huge differences in terms of genderbased labor in this region in the period of 2014-2018 However, it can be seen that 10 11 3.3 Model for the analysis into impacts of labor with vocational training on multi-dimensional poverty reduction 3.4.1 Impacts of labor with vocational training on possibility of employment This thesis used logistic regression model with binomial variable as dependent one namely paid job (Paidjob), paidjob would be equal to if a labor in the region received salary and Paidjob would be if a labor did not receive salary Independent variables in this model included labor characteristics (X) like Gender, Skill, Age, and Urban The focus of this thesis was modelizing the probability of poor household as a function of educational background of households’ heads and other features of the households Binary logistic regression model was estimated for the probability of a poor household with different educational background (Greene, 2008; Demaris, 1995; Wooldridge, 2009) π: probability of a household having multi-dimensional poverty and specified as the following: , Zi = β0 + β1CMKTi + β2Marriedi + β3Genderi + β4TTNTi + β5Agei + yeari + ei CMKT refered to technical skills, including: no technical skills, pre-intermediate training, vocational school, vocational college and higher education and above; Variable Married meant marital status, equal to in the case of having married, equal to in other cases Variable Gender meant gender of the labor, equal to in the case of female TTNT meant rural, urban areas, equal to in the case of rural area Age meant the age of labor Year meant the year, appearing in the model, reflecting changes through the time but not being possibly observed 3.4.2 Impacts of vocational training on labor’s income This study based on model by Mincer to estimate impacts of labor with vocational training on labor’s income, following is the model: Lnwagei = β0 + β1agei + β2agei2 + β3CMKTi + β4Marriedi + β5Genderi + β6TTNTi + β7FDIi + β8Statei + β9branchi + β10occupi+ β11year + ei (*) age and age2 meant age and squared age respectively, making them as proxy for experience variable According to Mincer (1993) and (Franz, 2003), salary would have positive relation with age variable, however the older the age was, the lower the income would be CMKT meant dummy variable for skill and training levels from college to university According to certain academics (Becker,1964; Mincer, 1993; Heckman, 1999; Fanz, 2003; Lynch, 1992 and Blundell et al, 1999), human capital would be reflected through levels of education, the higher the level was, the higher the rate of reture would be, then, labor with vocational training would have chance of increasing income Gender: gender dummy variable (equal to in the case of male and equal to in the case of female), hypothesis assumed that salary of male labor would be higher than that of female (Trostel et al, 2002; Jacobson et al, 2005) 3.4.3 Impacts of labor with vocational training on multi-dimensional poverty reduction π = Probit(Yi = 1) = 1+ e βi X i ) (a+ variable to differentiate multi-dimensional variable was based on the definition and classification of poor households in Vietnam as mentioned above Therefore, this study used data VHLSS 2014, 2016 and 2018 to calculate lacking indicators of multidimensional poverty This helped to identify which category a household would belong to (poor, near poor, multi-dimensional poor) X represented for vector of explainatory variables, including personal characteristics of household heads and households’ characteristics CHAPTER ANALYSIS OF THE IMPACT OF LABOR THROUGH VOCATIONAL TRAINING TO MULTI-DIMENSIONAL POVERTY REDUCTION IN THE NORTHWEST PERIOD 2014 - 2018 4.1 Current status of vocational training institutions and the number of students participating in vocational training in the Northwest region 4.1.1 Number of vocational training institutions by type, type of establishment and province/city It can be said that the number of vocational training institutions in the northern mountainous provinces has increased rapidly between 2014 and 2018 4.1.2 Number of vocational teachers at vocational training institutions in the Northwest region The number of vocational teachers at vocational training institutions of the Northwest provinces has changed significantly in the period 2014-2018 4.1.3 Number of students participating in vocational training (those receiving vocational training) in the Northwest Region The number of students participating in vocational training and vocational training in the Northwest is not high, the rate is still low 4.2 Reality of labor with vocational training in the Northwest 4.2.1 In regard of areas The proportion of labor with vocational training having jobs during 2014-2018 in rural areas aws higher than that kind of labor in urban area In 2014, this discrepancy 12 13 was small at above 11%, in 2017, it was 16,58% However, in recent years, that number was greater, especially, in 2018, the proportion of labor with vocational training in urban area was 37,54%, whereas that number in rural areas was up to 62,46% (showing nearly 25% discrepancy), which was about 1,7 times higher 4.2.2 In regard of gender During the research time, the proportion of labor with vocational training having jobs between male and female did not change much However, in general, the number of labor with vocational training having jobs through those years was higher among males than females The proportion of male labor in this case was usually higher than 60%, whereas the rest belonged to female 4.2.3 In regard of age group Similar to the analysis into the workforce, the group of young labor under 35 years old acquiring vocational training and having jobs accounted for the largest number, which was about 46,21%, nearly times higher than that number for the group above 55 years old The rest 38,19% belonged to the group of labor at middle age, between 35 to 54 years old 4.2.4 In regard of paid labor The proportion of labor with vocational training having paid jobs was usually higher than that of labor having unpaid jobs In the context of labor market development, in the period of 2014-2018, labor with vocational training got nearly 10% higher salary than labor without this kind of training 4.2.5 In regard of manufacturing sectors Among business sectors, that of other services attracted a large number of labor with vocational training, which fluctuated from 30% to 40%, depending on different year 4.2.6 In regard of occupation and specialization Labor with vocational training having jobs was mainly simple labor, or labor with technical skills at middle level At the same time, labor with high technical skills accounted for small number 4.2.7 In regard of business type It can be seen that labor with vocational training in the Northwest did not meet the requirements of foreign employers This was reflected through small number of labor with vocational training working in foreign-invested enterprises in the period of 2014-2018 During this time, 2016 was the year with high number of that kind of labor with 1,22% 4.3 Reality of income of labor with vocational training in the Northwest in the period of 2014-2018 4.3.1 In regard of areas It can be seen that the impacts of vocational training on income of labor in the Northwest during 2014-2018 was apparent In 2014, the average income was 2.886,14 (thousand VND/month), in 2018, this number increase to 5.009,06 (thousand VND/month) This means that during years from 2014 to 2018, average income per head of labor in this region increased by 2.122,92 (thousand VND/month), equal to an increase by 13,20%/year The increase in income of labor with vocational training in urban area was much higher than that of labor in rural area 4.3.2 In regard of gender In general, the income of male with vocational training was higher than that of female during the period of 2014-2018 4.3.3 In regard of age group If categorized by age group, income of labor from 45 to 49 years old was the highest with 4.994,32 (thousand VND/month), the group with the lowest average income was labor at above 60 years old with 1.640,5 (thousand/month) 4.3.4 In regard of paid jobs There was obvious difference in the income of labor with vocational training based on their job features Labor having paid jobs got much more income than labor having unpaid jobs 4.3.5 In regard of economic sector If categorized by different economic sectors, lanor with vocational training working for exploratory industry had the highest income compared with the average rate with 6.666,58 (thousand/month), while the lowest number belonged to fisheries sector with the average number of 1.026,59 (thousand/month) 4.3.6 In regard of jobs Simple labor was the one the the lowest income within labor having vocational skills with average income of 1.180,7 (thousand VND/month), which was much lower than the average income of the whole region in the period of 2014 -2018 with 3.834,46 (thousand VND/month) 4.3.7 In regard of business type Average income of labor with vocational training in the period of 2014-2018 of the public sector was the highest, which was followed by foreign invested sector and the non- public sector (the income of public sector was 1,8 times higher and that of foreign invested one was 1,6 times higher than that of non-public sector) 4.4 Reality of poverty reduction and multi-dimensional poverty reduction in the Northwest 4.4.1 Results of implementation of poverty reduction in the Northwest Thanks to widely implemented policies on vocational training in Northern mountainous area, the number of poor households dramatically declined Although the 14 15 number of near-poor households fluctuated, it did not change as much as that of poor households However, in the period of 2014-2018, the number of near poor households in the region slightly increased compared with that of poor households In particular, there were 1.300 near poor households, which was 1% increase compared with 2014 4.4.2 Results of implementation of muli-dimensional poverty reduction in the Northwest In this section, the thesis used VHLSS data to analyze fluctuations of multidimensional poverty reduction in the period of 2014-2018 among hosueholds in the Northwest In the period 2014-2018, the number of households being in poor and near-poor conditions in the Northwest was in the upward trend By contrast, the number of poor and near-poor households in this time decreased despite unconsiderable changes In particular, in 2014 the number of poor households was 613, in 2018 that number increased about 20 households, reaching 632 ones The number of near poor households increased largely with more than 38 households, from 290 ones in 2014 to 328 ones in 2018, which was 13,1% rise compared with 2014, while the number of poor households grew up by about 3,18% Lacking dimensions of households The lacking level in multi-dimensional access to households in the Northwest was largely different in different aspects However, there was a downward trend in the lacking level in the late years of the research time This showed an improvement in the access to services and daily life of local people 4.4.2.1 In regard of areas Rich poor gap between urban and rural areas was apparent The number of households in poor and near poor conditions in rural area was much higher than that in urban one On the other hand, the number of both poor and near poor households in ural and urabn areas was in the downward trend in the late years of the research time 4.4.2.2 In regard of gender of the household head In general, hosueholds with femal heads usually had more positive economic conditions Therefore, the proportion of poor and near poor households with male heads was higher than that kind with female ones In 2014, the number of poor households with male heads was 21,63%, meanwhile that number for female heads was 13,96%, which was about 8% lower, and gap of near poor households between those with male and female heads was 2% In 2018, the number of poor households with male heads decreased to 19,64% compared with that number in 2014 However, the number of near poor households with male heads increased by nearly 1% 4.4.2.3 In regard of age group of household heads It can be seen that the number of poor and near poor households gradually decreased when the age of household heads increased At the same time, the proportion of poor households was in the downward trend through the research years, by contrast, the proportion of near poor households was in the upward trend in the same period 4.4.2.4 In regard of ethnic group Although the number of poor and near poor households among different ethnic groups decreased over the period, specific number for the ethnic minorities was much higher than that for the Kinh/ Chinese 4.4.3 Relationship between labor with vocational training and multi-dimensioanl poverty in the Northwest 4.4.3.1 Relationship between vocational training and lacking dimension Table 4.23 Correlation among the number of labor with vocational training and household features Lacking indicator Correlation Lacking indicator Correlation Educational background of the adults -0.105 Housing area -0.056 Schooling status of children -0.036 Water source -0.070 Access to healthcare service 0.015 Toilet -0.174 Engagement in healthcare insurance -0.006 Telecommunication usage -0.058 Housing quality -0.101 Assets for information access -0.089 Source Calculation based on VHLSS 2014-2018 data 4.4.3.2 Training level of household heads and educational lack The rate of educational lack within adults considerably improved in recent years In particular, the most intensive reduction happened among the group without training Other groups of college and university background experienced almost no changes The average rate of educational level within adults seemed to decline in the last years of the research time In 2014, that number was 14,14% whereas in 2018 it went down by 4,83% to 9,31% 4.4.3.3 Training level of household heads and healthcare lack The rate of joining healthcare insurance dramactically declined in recent years In addition, the highest reduction wsa recognized among different levels of training Research findings demonstrated that in terms of groups with different training levels, the rate of healthcare lack obviously improved In 2018, that number was 0,53%, reducing by 2,95% compared with 2014, at the same time, the group of different training levels including college and university background did not decline much, with only 0,72% 4.4.3.4 Training level of household heads and housing lack Similar to the above analysis, lack of housing seemed to decline in recent years and the group of college and university background experienced the lowest lack However, in terms of housing criteria, thr group without training gor the most improvement 16 17 4.4.3.5 Training level of household heads and living condition lack The rate of living condition lack in recent years semmed to decline even with only 1% In terms of housing aspect, the group without training experienced the most improvement However, in terms of living conditions, the group with college and university background improved the most 4.4.3.6 Training level of household heads and information access lack In general, the use of telecommunication of local people improved, which meant that the lack of telecommunication usage dramatcailly declined In terms of the criterion for telecommunication usage, the number in 2014 was 9,83%, but that number in 2018 was 3,58%, equal to 6,25% decline 4.5 An analysis into impacts of labor with vocational training on job opportunities, income and multi-dimensional poverty reduction in the Northwest 4.5.1 An analysis into impact of labor with vocational training on possibility of job and income 4.5.1.1 An analysis into impact of labor with vocational training on possibility of job for labor - Impact of technical skill variable on opportunity of paid job: The group without certificate was regarded as the basic variable for the comparison among dummny variables, pre-intermediate training level variable was reflected through CMKT2 dummy variable, college and university level was reflected through variables CMKT3, CMKT4, CMKT5 respecrtively The estimation of these variables received statistical power With positive index of technical skill variable, which increased gradually from preintermediate level, it was clear that labor without technical skills got 0.2 lower probability of paid jobs than that of inter-mediate training level, 0.436 lower than labor with vocational school background, 0.541 lower than labor with college background and 0.693 lower than labor with university background - Impacts of marital variable on paid job opportunity: variable “married” gor estimation of - 0.0478 0, showing fewer unpaid jobs for labor with vocational training in the case of increasing age - Impact of variable year on paid job opportunity: In the research model, 2014 was selected as the basic research year to make relevance comparison with other years in the period Estimation of the year variable showed negative number of 2014 and 2017, that of the rest years was positive This meant that paid job opportunity for labor increased compared with 2013, whereas probability for paid jobs in other years was lower than 2013 4.5.1.2 An analysis into impact of vocational training on labor’s income - Impact of age variable on income of labor with vocational training: variable “age” reflected age of labor with regression index of 0.057, showing statistical power of 99% This meant income of labor in the Northwest had positive relation with their age, meaning that the older the labor was, the higher income they would have - Impact of technical skill variable on income of labor with vocational training: the group without technical skills was put as the basic variable for the comparison with dummy variables, pre-intermediate training level was reflected by CMKT2 variable, training at vocational school was reflected by CMKT3 variable, training at vocational college was reflected by CMKT4 variable, training at university was reflected by CMKT5 variable, all estimations got statistical power Research findings showed that thr group of labor with university background got higher average income than the one without technical skills (e0,245 - 1)*100%=27,38%; labor with college background had higher average income than the one without technical skills (e0,227 - 1)*100%=25,48%; labor with vocational school background had higher average income than the one without technical skills (e0,132 - 1)*100%=14,11%; labor with intermediate level had higher average income than the one without technical skills (e0,163 1)*100%=17,70% It can be said that in the Northwest, the higher the training level was, the higher the income would be Labor with university background was the one with the highest income, which followed by labor with college background - Impact of marital variable on income of labor with vocational training: variable “married” got estimation of 0.0618, showing statistical power with 99% of reliability This meant that married labor with vocational training got postitive impact on their income - Impact of rural and urban variable on income of labor with vocational training: estimation of dummny variable “urban” was 0.120 with statistical power of 99%, showing income of labor in the urban Northwest was higher than that of labor in rural one12,75% (e0.120- 1)*100% =12,75%) 18 19 - Impact of gender vairble on income of labor with vocational training: estimation showed that in the Northwest, average income of male labor was that of female (e0.266- 1)*100% =30,47% - Impact of labor with vocational training on labor’s income in different economic fields the Northwest: research findings showed that in this region, labor in agriculture, forestry got the lowest income In here, labor in hospitality and restaurants got higher income compared with the previous field143,27% = (e0.889- 1)*100%), labor in mining industry was higher than that of agriculture and forestry field 130,94% = (e0.837- 1)*100%), fishery field got higher income than agriculture and forestry one 11,07% = (e0.1051)*100%) - Impact of labor with vocational training on income of labor in different occcupations in the Northwest:research findings showed that in this region, there were kinds of occupations with lower income than simple labor, which included officer (7,64% lower = (e0.0736- 1)*100%) and skilled labor in agri-fishery (5,07% lower= (e0.0494- 1)*100%)), the rest kinds of occupations got higher income than simple labor, among which labor in local authorities at different levels was the highest compared with simple one 90,59% higher= (e0.645- 1)*100%), followed by labor with high technical skills 78,06% higher = (e0.577- 1)*100%), and labor with middle technical level, 68,03% higher= (e0.519- 1)*100%) - Impact of labor with vocational training on different income in different types of business: estimations showed that labor in the Northest working for FDI sector got higher income than labor in the public sector (24,73% higher (=(e0.221- 1)*100%); and labor in the public state was lower than that of labor in non-public sector 1,94% = (e0.0192- 1)*100%) - Impact of policies on vocational training on different income in different years: it can be said that policies on vocational training put positive impact on income of labor through the period 2012 was selected as the basic year for comparison with other years Accordingly, in 2013, income of labor with vocational training in the region was higher than that in 2012 with only 19,24% = ((e0.176- 1)*100%), however, in the latter years, income of labor got improvement with that of labor having vocational training in 2017 higher than 2012 at 54,03% = ((e0.432- 1)*100%), in 2018, the discrepancy in the income was 58,09% = ((e0.458- 1)*100%) These results provided more evidences for precise policies on vocational training in the Northwest 4.5.2 An analysis into labor with vocational training on multi-dimensional poverty reduction in the Northwest - Impact of proportion with vocational training in a household on the status of multi-dimensional poverty: estimation showed that “tyledtao” was -0.031
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