This paper analyzes the relationship between the use of informal contacts and wage outcomes using matched employer-employee data from small and medium firms in Vietnam. We find that obtaining a job through knowing another worker in the firm generally is positively associated with individual wages, and this result holds when taking into account traditional wage determinants as suggested by the literature. Moreover, we show that the mechanism through which informal contacts are associated with wages differs depending on the type of contact used.
Economic Analysis Using Linked Employer and Employee Data: Cadernos Sociedade E Trabalho Nº15, 2011, p. 38-46
Faculty of Social Sciences; wage; recruitment method; Vietnam; informal contacts