Empirical Analysis of Factors Affecting Labor Restructuring in Vietnam: An Approach Based on Spatial Regression

Abstract

The paper to assess the factors affecting labor restructuring across sectors in 63 provinces/cities of Vietnam. We apply a spatial regression model for firm-level panel data during the period 2010-2019. The results show the structural shift of intra-industry labor and the shift of labor structure between industries on different levels. Besides the fundamental factors that directly affect the labor restructuring, the spatial interaction amongs localities is also an essential factor that has a spillover effect on the labor gap between sectors and regions. Based on the empirical evidence, the study proposes some important policy implications to help evaluate and propose recommendations on a more comprehensive and synchronous labor restructuring to make positive contributions to the workforce for economic growth.