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67TH Annual UN DPI/NGO Conference — Final Report Conference Programme Wednesday, 22 August 2018 Workshops 08:30 – 09:45 Youth Hub Caucus

Job Prospects for Youth,

Low-skilled and Women Workers

in the Greater Mekong Subregion

Edited by Vathana Roth

Job Prospects for Youth, Low-skilled and Women Workers in the Greater Mekong Subregion

Vathana Roth (Ed)

Job Prospects for Youth,

Low-skilled and Women

Workers in the Greater

Mekong Subregion

A GMS-Net Publication

Phnom Penh, January 2019

© 2019 Greater Mekong Subregion Research Network (GMS-Net) The designations employed in GMS-Net publications and the presentation of material contained therein do not imply any expression whatsoever on the part of the GMS-Net or its member institutions concerning the legal stat us of any country, territory, city or area or its authorities, or concerning the delimitation of its frontiers or boundaries.

ISBN 9789924500117

January 2019

This work was carried out with the aid of a grant from the International

Development Research Centre (IDRC) of Canada.

Citation: Vathana Roth, ed. 2019. Job Prospects for Youth, Low-skilled and

Women Workers in the Greater Mekong Subregion

. Phnom Penh: Cambodia

Development Resource Institute.

Editing: Peter Ford, Allen Myers, Susan Watkins

Cover design: Hiev Hokkheang

Layout: Oum Chantha

Printed and bound in Cambodia by Print Master Enterprise, Phnom Penh

Abbreviations vii

Acknowledgements ix

Foreword x

List of contributors xii

1. Towards Equitable Pay and Decent Job Opportunities for Youth,

Low-skilled and Female Workers in the Greater Mekong Subregion:

A Synthesis 1

Vathana Roth and Edgard R. Rodriguez

Part 1: Minimum Wage and Its Impacts

2. Impacts of the 300 Baht Minimum Wage Policy on Migrant Workers in Thailand 21 Jirawat Panpiemras, Boonwara Sumano Chenphuengpawn and

Ruttiya Bhula-Or

3. Impact of Minimum Wages on Employment and Wage Distribution in Vietnam: Gender and Age Perspectives 44

Vu Hoang Dat, Pham Minh Thai and La Hai Anh

4. Effects of Minimum Wage on Manufacturing Workers and Firms in

Myanmar: Initial Evidence and Policy Implications 76 Zaw Oo, Aung Myo Min, S. Kanady, Min Zar Ni Lin, Nguyen Hanh and Samu Ngwenya Part 2: Women's Employment, Wage Gaps and Social Insurance

5. Employment of Women in the Greater Mekong Subregion:

New Insights from the Gallup-ILO World Poll 123

Gordon Betcherman and Iftekharul Haque

6. Investigating the Gender Wage Gap in Cambodia 141

Cheng Savuth, Ngov Penghuy, Heng Molyaneth and Heng Seltik

7. Gender, Employment and Wage Disparities in Laos 166

Phothong Siliphong and Keophet Phoumphon

8. Labour Market Effects of Mandatory Social Insurance Policy: Some

Evidence from Vietnam

183
Nguyen Thi Kim Dung, Ngo Minh Tuan and Do Son Tung

Part 3: Skills and Training

9. Vocational Training and Labour Market Transitions: A Randomised

Experiment Among Cambodian Disadvantaged Young Adults 215

Chandarany Ouch

10. On School-to-Work Transitions in Cambodia: Young People

Navigating Opportunity Structures and the World of Work 241 Chivoin Peou, Sophannak Chhorn, Kreng Heng and Rosa Yi

11. Skills Shortage: Chinese Firms and the Lao Labour Market 273

Ying Chen, Shuhui Wen and Bowen Deng

vii vii

Abbreviations

ADB

Asian Development Bank

AEC

ASEAN Economic Community

ASEAN Association of Southeast Asian Nations

CAF

Centre for Analysis and Forecasting

CDRI

Cambodia Development Resource Institute

CESD

Centre for Economic and Social Development

CIEM

Central Institute of Economic Management

CMP cutting, making and packaging

CPI consumer price index CSES

Cambodia Socio-Economic Survey

EGBOK Everything's Gonna Be OK

FDI foreign direct investment FIE foreign-invested enterprise FTUB

Federation of Trade Unions of Burma

GDP gross domestic product

GMS

Greater Mekong Subregion

GMS-Net Greater Mekong Subregion Research Network

GWP Gallup World Poll

IDRC International Development Research Centre of Canada IES

Informal Employment Survey

ILO

International Labour Organization

IMF

International Monetary Fund

ITT intention-to-treat

IV instrumental variable

KHR

Khmer riel

KILM

Key Indicators of the Labour Market

KUST Kunming University of Science and Technology LAK

Lao kip

LECS

Lao Expenditure and Consumption Study

LFS

Labour Force Survey

LPM linear probability model LSB

Lao Statistics Bureau

LSMS

Living Standard Measurement Study

MMK

Myanmar kyat

MNE multinational enterprise

MOEYS Ministry of Education, Youth and Sport

viii MOLISA Ministry of Labour , Invalids and Social Affairs MOLVT Ministry of Labour and V ocational Training MOU memorandum of understanding MSME micro, small and medium-sized enterprise

MW minimum wage

NGO non-governmental organisation NWC

National Wage Committee

OECD Organisation for Economic Co-operation and Development OLS ordinary least squares

OT overtime

PSE

Pour un Sourire d'Enfant

PSMW Provincial Subcommittee on Minimum Wages

SD standard deviation SDG

Sustainable Development Goal

SEZ special economic zone SI social insurance SME small and medium enterprise

SODA Social Development Alliance Association

SOE state-owned enterprise STAR

Subcommittee on Technical Affairs and Review

STEP Skills Towards Employability and Productivity SWTS

School-to-Work Transition Survey

TDRI

Thailand Development Research Institute

TVET Technical and Vocational Education and Training

UNDP United Nations Development Programme

USD

US dollar

VASS

Vietnam Academy of Social Sciences

VHLSS Vietnam Household Living Standard Survey

VIE

Vietnam Institute of Economics

VND

Vietnamese dong

WDI

World Development Indicator

WEF

World Economic Forum

YUE

Yangon University of Economics

ix ix

Acknowledgements

This collection of research papers is the result of a three-year multi- country research program conducted under the Greater Mekong Subregion Research Network (GMS-Net) with the generous support of the International

Development Research Centre (IDRC) of Canada.

We would like to thank Dr Edgard R. Rodriguez, Senior Program Specialist at IDRC, who was very supportive during project implementation. His involvement from project inception to completion was instrumental to the success of this regional and collaborative undertaking. We would also like to extend our thanks to members of the selection committee: Dr Chhem Rethy, Dr Hay Hunleng, Dr Kyoko Kusakabe and Dr Edgard R. Rodriguez. They An important aspect of the project was mentorship - an expert was hired to assist each research team. The idea was to ensure high quality research and to put in place a strong and effective quality assurance mechanism. For that, we are grateful to all mentors for their guidance and advice: Thomas van den Aarssen, Thomas Bernhardt, Dr Gordon Betcherman, Sabina Dewan, Dr Philippe Doneys, Dr Franque Grimard, Dr Shannon Maloney, Dr Makiko

Matsumoto, Dr Jayant Menon and Gregory Randolph.

Dr Chhem Rethy, CDRI's executive director, was also supportive. We are grateful to Vathana Roth, project coordinator, whose leadership kept the project on track and ensured its success. The project would not have run as smoothly as it did without the administrative and logistical support provided by Buth Rithy, Pon Dorina, Sen Sina, Soung Kaclika, Sry Bopharath and

Thong Beauphara.

This publication is the product of various research studies conducted under the Greater Mekong Subregion Research Network (GMS-Net). The project was funded solely by the International Development Research Centre (IDRC) of Canada, and was implemented by the Cambodia Development Resource Institute (CDRI). In March 2015, CDRI called for proposals from researchers and research institutions in GMS countries on six research themes. The views and claims expressed in the introductory chapter and the subsequent chapters do not represent the views and claims of IDRC or CDRI nor do they represent the views or claims of the organisations and entities that worked with the research teams during data collection (quantitative and qualitative). The sole responsibility for any errors, omission, inaccuracies and incompleteness of information lies with the a uthor(s). x

Foreword

I remember joining a roundtable discussion in March 2015 in Phnom Penh. Cambodia Development Resource Institute (CDRI). The aim of the half-day event was to gather experts and economists from the region and beyond to discuss labour market issues and to collect feedback to inform the design of a project examining job prospects for young, low-skilled and female workers in the Greater Mekong Subregion. Three years later, it gives me great pleasure to present this publication. It is a collection of original research papers, and is an output of the Greater Mekong Subregion Research Network (GMS-Net). In 2015, GMS-Net and organisations in the region for policy and action research on six themes: earnings inequality; labour market regulation and wage setting; safety nets for low-income, low-skilled workers; private sector engagement in skills development; implications for labour market policies and institutions of the ASEAN Economic Community; and strategies to scale up investment in programs that support decent job creation and skills training for young people.

Eight research grants were awarded.

The policy projects explored and documented trends and policy reforms affecting low-skilled and young workers' wage or job prospects in terms of labour force participation, wages, gender wage gaps and women's engagement change. The action research projects included evaluation of labour standards compliance, innovative business programs and new business practices. The CDRI research team, led by Dr Chandarany Ouch, worked closely with Pour un Sourire d'Enfant to provide training on hospitality to disadvantaged young Cambodian women and men. The team then evaluated how the training could help trainees transition as well as advance in the job market. This is an added contributions GMS-Net provides. The themes covered tackle crucial aspects of the labour market in the region and for the target groups. This collection of research studies provides detailed research, policy and practice in the region. Over the three years, with support from the International Development Research Centre of Canada, CDRI provided management oversight of the research competition, coordinated mentorship, and ensured quality control and knowledge dissemination. GMS- Net also mentored talented young researchers with the aim of supporting thought and social change leaders. xi xi The GMS is a unique and dynamic region that has maintained robust economic growth. GMS countries, however, still face a number of development challenges, two of which are achieving sustainable economic growth and ensuring that growth is inclusive for young adults, the low-skilled and women in terms of decent job opportunities, pay equity and equitable pay, and gender equality in the labour market. Addressing these challenges requires major institutional and regulatory reforms. Policymakers and reformers will policies and regulations that can ensure optimal labour market outcomes. Thus it is of utmost importance that research be designed so that evidence is readily available when the topic demands their serious attention. This is what GMS-Net through this multi-country research program has achieved. The paper on the effects of minimum wages in Myanmar adds value to the research collection, and I would like to thank Zaw Oo and co-authors at the Centre for Economic and Social Development for their hard work even though their research was not funded by GMS-Net. deliver insights into some of the most important, sometimes controversia l, labour market issues in the GMS, and are applicable and relevant beyond the region. I am also optimistic that this output will be an asset to attract more interest, and perhaps opportunities for a new multi-stakeholder approach for funding research, in the region.

Dr Chhem Rethy

Executive Director, CDRI

xii

List of contributors

AUNG Myo Min is a research coordinator at the Centre for Economic and Social Development, Yangon, Myanmar: aungmyomin007@gmail.com

Gordon BETCHERMAN

is a professor at the School of International Development and Global Studies, University of Ottawa, Ontario, Canada: gordon.betcherman@uottawa.ca

Ruttiya BHULA-OR

is a researcher at the College of Population Studies, Chulalongkorn University, Bangkok, Thailand: ruttiya.b@chula.ac.th CHENG Savuth is a lecturer at Pannasastra University of Cambodia, Phnom

Penh, Cambodia: cheng_savuth@yahoo.com

BOONWARA Sumano Chenphuengpawn is a research fellow at the Thailand Development Research Institute, Bangkok, Thailand: boonwara@tdri.or.th CHHORN Sophannak is a lecturer at the Department of International Studies, Royal University of Phnom Penh, Phnom Penh, Cambodia: nak_chorn@ymail.com

Bowen DENG

is a lecturer at the Institute of Development Research, Yunnan University, Kunming, Yunnan province, China: dengbowen@ynu.edu.cn

Vu Hoang

DAT is a researcher at the Centre for Analysis and Forecasting, Vietnam Academy of Social Sciences, Hanoi, Vietnam: vhdat@yahoo.co.uk DO Son Tung is a researcher at the Vietnam Institute of Economy, Hanoi,

Vietnam: dosontung82@gmail.com

Iftekharul HAQUE

is a doctoral student at the School of International Development and Global Studies, University of Ottawa, Ontario, Canada: ahaqu057@uottawa.ca HENG Kreng is a lecturer at the Faculty of Education, Royal University of Phnom Penh, Phnom Penh, Cambodia: krengheng@gmail.com HENG Molyaneth is a lecturer at the Royal University of Phnom Penh,

Phnom Penh, Cambodia: molyaneth@gmail.com

HENG Seltik is women's economic empowerment specialist for the United Nations Development Program, Phnom Penh, Cambodia: seltik.heng@gmail.com S. KANADY is a research associate at the Centre for Economic and Social Development, Yangon, Myanmar: kanayde.cesd@gmail.com LA Hai Anh is a senior research fellow at the National Centre for Social and Economic Modelling, University of Canberra, Canberra, Australia: haianhla2011@gmail.com MIN Zar Ni Lin is deputy head of research for the Centre for Economic and Social Development, Yangon, Myanmar: minzarni.cesd@gmail.com xiii xiii NGO Minh Tuan is deputy director of the Department of Public Services Policy Studies, Central Institute for Economic Management, Hanoi,

Vietnam: minhtuan@mpi.gov.vn

NGOV Penghuy is a lecturer at the Royal University of Phnom Penh,

Phnom Penh, Cambodia: penghuy@gmail.com

Hanh NGUYEN is a research fellow at the Centre for Economic and Social Development, Yangon, Myanmar: hanhnguyen.cesd@gmail.com NGUYEN Thi Kim Dung is director (former) of the Department of Public Services Policy Studies, Central Institute for Economic Management,

Hanoi, Vietnam: kdungciem@gmail.com

OUCH Chandarany is a research fellow at the Cambodia Development Resource Institute, Phnom Penh, Cambodia: chandarany@cdri.org.kh Jirawat PANPIEMRAS is a former research fellow at the Thailand Development Research Institute, Bangkok, Thailand: panpiemras@gmail.com PEOU Chivoin is a lecturer at the Faculty of Social Sciences, Royal Universi ty of Phnom Penh, Phnom Penh, Cambodia: peouchivoin@gmail.com PHAM Minh Thai is a researcher for the Centre for Analysis and Forecasting, Vietnam Academy of Social Sciences, Hanoi, Vietnam: phamminhthai80@gmail.com Keophet PHOUMPHON is president of the Social Development Alliance Association, Vientiane, Laos: keophetpp.sodalaos@gmail.com

Edgard R.

RODRIGUEZ

is a senior program specialist for the International Development Research Centre, Ottawa, Canada: erodriguez@idrc.ca

Vathana ROTH

is a research fellow at the Cambodia Development Resource Institute, Phnom Penh, Cambodia: vathana@cdri.org.kh SAMU Ngwenya is a senior research assistant at the Centre for Economic and Social Development, Yangon, Myanmar: samundema@gmail.com SHUHUI Wen is a professor at Kunming University of Science and Technology, Kunming, Yunnan province, China: swen33@163.com Phothong SILIPHONG is the founder of the Social Development Alliance Association, Vientiane, Laos: phothong.sodalaos@gmail.com YI Rosa is a lecturer at the Faculty of Development Studies, Royal Univers ity YING Chen is a professor at the Institute of Development Research, Yunnan University, Kunming, Yunnan province, China: chen_ying@ynu.edu.cn ZAW Oo is executive director of the Centre for Economic and Social Development, Yangon, Myanmar: zawoo.cesd@gmail.com 1

Towards Equitable Pay and Decent Job

Opportunities for Women, Youth and Low-skilled

in the Greater Mekong Subregion: A Synthesis

Vathana Roth and Edgard R. Rodriguez

Highlights

1. Countries in the Greater Mekong Subregion (GMS) are growing fast, so is job creation. Working women are gaining ground, but most workers are still vulnerable.

2. The GMS countries have some of the lowest indicators of human capital, so young and ill-prepared workers are facing a bleak future in a rapidly evolving world economy where globalisation and international trade are and robotics).

3. Greater attention to gender perspectives and measures to support gender equality in the workplace remains an urgent policy priority to improve job prospects for girls and young women.

4. Minimum wages are found to help reduce wage inequality and increase the wages of covered formal workers, particularly the low-paid. Research resort to using informal sector workers, or because the minimum wage remains below the market wage.

5. Women are increasingly willing to work outside the home. Key barriers to women's employment are family-work balance, lack of affordable childc are, abuse-related factors, high transport cost and long commuting time. 6.

Gender wage gaps remain persistent. Women are paid less than men on average. The most important determinants contributing to wage differenti

als are social and cultural norms and workplace discrimination. 7. Skills shortages and mismatches persist in most, if not all, GMS countri es. Skills development remains critical for a region needing to boost its ba sic human capital indicators. Also, reskilling and retraining - an idea t hat is aligned with lifelong learning - is crucial, particularly for women a

nd youth. Technical or vocational education and training could be a solution, but impacts on employment and income are mixed, at least in the short term.

8. GMS countries need to invest more in their own domestic research capacity to analyse labour issues.

2Job Prospects for Youth, Low-skilled and Women Workers in the Greater Mekong Subregion

1.1 Context and motivation

The future of work can be both rewarding and worrying, particularly for those who cannot keep up with a fast-changing world. Towards a Reskilling Revolution: A Future of Jobs for All emphasises how economic growth "is increasingly based on the use of ever higher levels of specialized skillsquotesdbs_dbs17.pdfusesText_23

[PDF] [PDF] Job Prospects for Youth, Low-skilled and Women Workers in the

Job Prospects for Youth,

Low-skilled and Women Workers

Edited by Vathana Roth

Vathana Roth (Ed)

Job Prospects for Youth,

Low-skilled and Women

Workers in the Greater

Mekong Subregion

A GMS-Net Publication

Phnom Penh, January 2019

ISBN 9789924500117

January 2019

Development Research Centre (IDRC) of Canada.

Women Workers in the Greater Mekong Subregion

Development Resource Institute.

Editing: Peter Ford, Allen Myers, Susan Watkins

Cover design: Hiev Hokkheang

Layout: Oum Chantha

Contents

Abbreviations vii

Acknowledgements ix

Foreword x

List of contributors xii

1. Towards Equitable Pay and Decent Job Opportunities for Youth,

A Synthesis 1

Vathana Roth and Edgard R. Rodriguez

Part 1: Minimum Wage and Its Impacts

Ruttiya Bhula-Or

3. Impact of Minimum Wages on Employment and Wage Distribution in Vietnam: Gender and Age Perspectives 44

Vu Hoang Dat, Pham Minh Thai and La Hai Anh

4. Effects of Minimum Wage on Manufacturing Workers and Firms in

5. Employment of Women in the Greater Mekong Subregion:

New Insights from the Gallup-ILO World Poll 123

Gordon Betcherman and Iftekharul Haque

6. Investigating the Gender Wage Gap in Cambodia 141

7. Gender, Employment and Wage Disparities in Laos 166

Phothong Siliphong and Keophet Phoumphon

8. Labour Market Effects of Mandatory Social Insurance Policy: Some

Evidence from Vietnam

Part 3: Skills and Training

9. Vocational Training and Labour Market Transitions: A Randomised

Chandarany Ouch

10. On School-to-Work Transitions in Cambodia: Young People

11. Skills Shortage: Chinese Firms and the Lao Labour Market 273

Ying Chen, Shuhui Wen and Bowen Deng

Abbreviations

Asian Development Bank

ASEAN Economic Community

ASEAN Association of Southeast Asian Nations

Centre for Analysis and Forecasting

Cambodia Development Resource Institute

Centre for Economic and Social Development

Central Institute of Economic Management

CMP cutting, making and packaging

Cambodia Socio-Economic Survey

EGBOK Everything's Gonna Be OK

Federation of Trade Unions of Burma

GDP gross domestic product

Greater Mekong Subregion

GWP Gallup World Poll

Informal Employment Survey

International Labour Organization

International Monetary Fund

ITT intention-to-treat

IV instrumental variable

Khmer riel

Key Indicators of the Labour Market

Lao kip

Lao Expenditure and Consumption Study

Labour Force Survey

Lao Statistics Bureau

Living Standard Measurement Study

Myanmar kyat

MOEYS Ministry of Education, Youth and Sport

MW minimum wage

National Wage Committee

OT overtime

Pour un Sourire d'Enfant

PSMW Provincial Subcommittee on Minimum Wages