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<p>This paper extends the literature on the effects of trade unions on mandatory fringe benefits by examining the role of grassroots unions in micro-, small-, and medium-sized enterprises (MSMEs) in rural and urban Vietnam. Using the Vietnamese firm-level panel data covering 5134 MSMEs (2005–2015), we first apply propensity score matching (PSM) to estimate the average treatment effects (ATE) of firm-level unionism, and then employ a multiple-period, doubly robust difference-in-differences (DRDiD) estimation to deeply identify the dynamic effects of grassroots unions from the time of their establishment onward. Our key findings are twofold. First, unionized MSMEs are more likely than their nonunion counterparts to provide mandatory fringe benefits; however, these positive effects and their significance evolve over time. Second, female employees in unionized MSMEs were more likely to receive paid maternity leave after the 2008 Labor Code; the effect was significant for unions formed in 2009 and weaker for those established the unions later. These findings underscore the need for reform in collective bargaining for workers in developing countries, such as Vietnam, to better protect workers’ mandatory non-wage benefits in MSMEs.</p>

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Does trade union protect fringe benefits for workers? Evidence from an emerging economy

  • 期刊论文

  • 发表日期：

    2026年1月28日

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  • Huong Quynh Nguyen,
  • Hanh Nguyen Pham,
  • Tien Ngoc Dao,
  • Hung Viet Nguyen

摘要

This paper extends the literature on the effects of trade unions on mandatory fringe benefits by examining the role of grassroots unions in micro-, small-, and medium-sized enterprises (MSMEs) in rural and urban Vietnam. Using the Vietnamese firm-level panel data covering 5134 MSMEs (2005–2015), we first apply propensity score matching (PSM) to estimate the average treatment effects (ATE) of firm-level unionism, and then employ a multiple-period, doubly robust difference-in-differences (DRDiD) estimation to deeply identify the dynamic effects of grassroots unions from the time of their establishment onward. Our key findings are twofold. First, unionized MSMEs are more likely than their nonunion counterparts to provide mandatory fringe benefits; however, these positive effects and their significance evolve over time. Second, female employees in unionized MSMEs were more likely to receive paid maternity leave after the 2008 Labor Code; the effect was significant for unions formed in 2009 and weaker for those established the unions later. These findings underscore the need for reform in collective bargaining for workers in developing countries, such as Vietnam, to better protect workers’ mandatory non-wage benefits in MSMEs.