Local governance and occupational choice among young people: First evidence from Vietnam

Using data from the School-to-Work Transition Surveys 2015 (SWTS 2015), the Enterprise Census data in 2014 (ECD 2014), and the Provincial Competitiveness Index 2014 (PCI 2014), this paper examines for the first time the effect of individual and family characteristics, firm agglomeration, and the quality of labour training (provided by provincial governments) on occupational choice among young people in Vietnam. Interestingly, we find that women are more likely than men to have better jobs, even after controlling for all other variables in the models. Higher levels of education were the most important factor in choosing non-manual jobs, while family background (as measured by the father’s occupation) plays a significant role in explaining young people’s occupational choice. More importantly, it was found that the quality of labour training increases young people’s chances of gaining better jobs. In addition, living in urban areas, the provincial GDP per capita, and firm agglomeration were also found to improve the probability of youth choosing better jobs.