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Social Networks and Employment Performance: Evidence from Rural–Urban Migration in Vietnam

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Rural-Urban Migration in Vietnam

Part of the book series: Population Economics ((POPULATION))

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Abstract

This chapter considers the effects of social networks on the income and employment dynamics of rural–urban migrants in Vietnam. Estimation of a causal effect is challenging because unobserved factors affect both employment performance and social networks. I address this endogeneity problem by using the instrumental variable method. The results suggest that social networks improve migrants’ incomes and make wage-earners willing to change their jobs.

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Notes

  1. 1.

    The mean of the log of migrants’ current income is 8.44. The effect is calculated as 0.9/8.44 = 0.106 or 10.6% of the mean.

  2. 2.

    The main reason for using OLS rather than other estimators such as logit is that the coefficients estimated by OLS are easier to interpret.

  3. 3.

    On average, there are 12 districts in each province. The area of each district ranges from 27.8 to 3677.4 km2 and the mean is 660 km2. For the period 1975–2006, the data are taken from Thomas et al. (2010).

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Author information

Authors and Affiliations

  1. Department for Analysis and Forecast, National Centre for Socio-Economic Information and Forecast (NCIF), Ministry of Planning and Investment, Hanoi, Vietnam

    Duc Anh Dang

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  1. Duc Anh Dang
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Correspondence to Duc Anh Dang .

Editor information

Editors and Affiliations

  1. International and Development Economics, Crawford School of Public Policy, Australian National University, Canberra, ACT, Australia

    Amy Y. C. Liu

  2. College of Business & Economics, Australian National University, Canberra, ACT, Australia

    Xin Meng

Appendix

Appendix

Table 9 Logistic regression
Full size table
Table 10 LIML Fuller IV estimates: Impacts of number of urban calls on income dynamics
Full size table

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Dang, D.A. (2019). Social Networks and Employment Performance: Evidence from Rural–Urban Migration in Vietnam. In: Liu, A., Meng, X. (eds) Rural-Urban Migration in Vietnam. Population Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-94574-3_6

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