Knowledge Note

"Women forego higher pay to work in occupations and industries which offer better non-monetary benefits, a choice which might be driven by an unequal distribution of house- and care- work."

Despite making significant progress in educational attainment and labor force participation, women in Vietnam continue to earn less than men, which is partly explained by their sorting into lower-paid occupations. We explore three hypotheses for why women choose lower-paid occupations and find that women may forego higher pay to work in occupations and industries which offer better non-monetary benefits: paid leave, lower weekly hours, health insurance, and social insurance. This choice may be driven by an unequal distribution of house- and care- work.

The Australia World Bank Partnership Program II (ABP-II) carries out comprehensive data and evidence-based analysis on emerging challenges to gender equality and provides support to policymakers and innovative activities to address these challenges and increase women’s economic empowerment.

The East Asia and Pacific Gender Innovation Lab (EAPGIL) carries out impact evaluations and inferential research to generate evidence on what works in closing gender gaps in assets, economic opportunities, and agency, and how closing these gaps can help achieve other development outcomes.