Luận văn thạc sĩ UEH leaving unemployment of an individual, the impact of unemployed benefits and

UNIVERSITY OF ECONOMICS

HO CHI MINH CITY

VIETNAM

INSTITUTE OF SOCIAL

STUDIES

THE HAGUE

NETHERLANDS

VIETNAM – NETHERLANDS

PROGRAMME FOR M.A IN DEVELOPMENT

ECONOMICS

LEAVING UNEMPLOYMENT OF AN

INDIVIDUAL: THE IMPACT OF

UNEMPLOYED BENEFITS AND FAMILY’S

INCOME

By

LE THI CAM NHUNG

MASTER OF ARTS IN DEVELOPMENT ECONOMICS

Ho Chi Minh City, December 2015

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ABSTRACT

This paper aims to analyze the determinants to affect the probability of having a job after a

period of being unemployed of Vietnamese labor by using Vietnam household living

standard survey. The study covers 1,156 observations by filtering all people in labor age

who were unemployed in 2010 to analyze their situation in 2012. Demographic

characteristics of each person are focused in order to discover the reasons to help people

find a job meanwhile the macroeconomics factors are considered to be unchanged.

Findings in this research emphasize that income of family, unemployed benefits, money

spending for inpatient fee contributed to demotivate people in seeking a job. On the

contrary, higher education could be helpful for an individual to leave unemployed

circumstance.

Keywords: unemployed people, determinants for having a job, income, education, fee

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ACKNOWLEDGEMENT

Foremost, I would like to sincerely thank Dr. Pham Thi Bich Ngoc. I am grateful to her

enthusiastic instruction crucial advice and valuable guidance during the time I worked with

this thesis.

In addition to this, I would like to express my respect and thank Dr.Truong Dang Thuy

who gave me very useful advice and comments. More special thanks to all professors and

staff of Vietnam-Netherlands Program as well as classmate and Vietnam-Netherlands

Program alumni.

Finally, I would like to thank you, my family, who motivated me with the master program

and support me to finish this thesis.

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ABBREVIATIONS

GDP Gross Domestic Product

VHLSS Vietnam Household Living Standard Survey

Sd Standard deviation

Coef. Coefficient

NBS National Bureau Statistics

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TABLE OF CONTENTS

ABSTRACT..........................................................................................................................i

ACKNOWLEDGEMENT.................................................................................................. ii

ABBREVIATIONS ........................................................................................................... iii

TABLE OF CONTENTS....................................................................................................iv

LIST OF TABLES..............................................................................................................vi

LIST OF FIGURES .......................................................................................................... vii

CHAPTER 1: INTRODUCTION........................................................................................1

1.1. Problem statement......................................................................................................1

1.2. Research objectives....................................................................................................2

1.4 Data and methodology................................................................................................3

1.5. Thesis structure .............................................................................................................3

CHAPTER 2: LITERATURE REVIEW.............................................................................5

2.1. Some definitions and concepts...................................................................................5

2.1.1. Unemployment definition......................................................................................5

2.1.2. Type of unemployment..........................................................................................5

2.1.3 Definition of leaving unemployment......................................................................6

2.2. Literature review..........................................................................................................6

2.2.1. The influence of demographic characteristics on leaving unemployment ............6

2.2.2. The impacts of unemployment benefits.................................................................9

2.2.3. Income and leaving unemployment.....................................................................10

2.2.4. Health status and being unemployed ...................................................................11

2.2.5. Summary of empirical researches about leaving unemployment ........................12

CHAPTER 3: DATA AND METHODOLOGY ...............................................................15

3.2. Data description........................................................................................................15

3.3. Analytical framework...............................................................................................18

3.4. Econometric model ..................................................................................................19

3.4.1 Modeling for probability of leaving unemployment.............................................19

3.4.2. Econometric model in thesis................................................................................21

3.5. Data consolidation and list of variables ...................................................................23

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CHAPTER 4: SUMMARY STATISTICS, EMPIRICAL RESULTS,

AND ANALYSIS..............................................................................................................27

4.1. Overview of unemployment in Vietnam..................................................................27

4.2. Statistics summary....................................................................................................28

4.2.1. Unemployed benefits...........................................................................................28

4.2.2. Expenditure for healthcare..................................................................................28

4.2.3. Family income .....................................................................................................29

4.2.4. Demographic characteristics................................................................................30

4.3. Regression and analysis ...........................................................................................32

4.3.1. Empirical result .................................................................................................32

4.3.2. T-test for significant statistics variables .............................................................38

4.3.3. Descriptive statistics for type of jobs of employed people..................................40

CHAPTER 5: CONCLUSION AND POLICY IMPLICATION ......................................46

5.1. Some findings...........................................................................................................46

5.2. Policy implications .....................................................................................................48

5.3. Limitations..................................................................................................................49

REFERENCES ..................................................................................................................50

APPENDICES ...................................................................................................................54

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