Explaining the gender wage gap in Vietnam: Evidence from RIF decomposition

Abstract

This study examines the gender wage gap in Vietnam using pooled data from the Vietnam Household Living Standards Surveys (VHLSS) for 2010–2020. The Recentered Influence Function (RIF) decomposition is applied to assess the gap at the mean and across different points of the wage distribution. The results show that male workers earn more than female workers throughout the distribution, with larger gaps at the lower quantiles, indicating a pattern more consistent with a sticky floor than a glass ceiling. The wage-structure effect dominates across all quantiles, while the composition effect is negative at most points, suggesting that observable characteristics generally narrow rather than widen the gender wage gap. Higher education and occupational composition contribute increasingly to reducing the gap at upper quantiles, whereas sectoral allocation plays a more important role among low-paid workers. The findings imply that policies should focus not only on women’s human capital but also on unequal returns, sectoral segregation, and disadvantages faced by low-paid female workers.