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Abstract
This paper investigates the impact of international migration on job creation in the informal sector in Vietnam. Using the national representative household data on international migration in 2008, the results find no self-employment differential between migrant and non-migrant households. International migration matters only if business scale is taken into account. Estimations using the propensity score matching method reveal that Vietnam's migrant households are either poor or rich families. This points to the effectiveness of government labour export programmes designed to reduce poverty and the tendency of rich families to send children to study abroad. The results also show that international migration has no impact on entrepreneurship, and thus employment generation in the informal sector, raising concerns about the lasting impact of migration.
Notes
Bureau of Administration on Overseas Workers – The Ministry of Labour, Invalids and Social Affairs, Vietnam.
DotM defines migrants and migrant households as follows:
| • | An absent migrant is a person who was born in the country of study but who, within the last 10 years, has left to go and live in another country. An absent migrant is still living abroad. An absent migrant household is a household that contains one or more absent migrants. | ||||
| • | A returned migrant is a person who was born in the country of study and who lives there now but who, at some point, has lived in another country for three months or more. A returned migrant household is a household that contains one or more returned migrants. | ||||
| • | A non-migrant household is a household that does not contain any migrant member. | ||||
This is, however, based on the assumption that a migrant's contribution to household income before migration is zero.