The gender wage gap among highly educated workers in Vietnam: patterns and explanations

Highly educated workers play an important role in economic growth and productivity, yet gender wage disparities may persist even among workers with similar levels of education. This study examines the gender wage gap among highly educated workers in Vietnam, a rapidly growing market-oriented economy undergoing significant structural transformation. Using data from the 2018 Vietnam Household Living Standards Survey, the analysis applies Ordinary Least Squares regression and the Blinder–Oaxaca decomposition to investigate gender wage differentials. The sample includes 7167 working-age individuals who were continuously employed during the previous 12 months. The results indicate that highly educated women earn significantly lower hourly wages than similarly educated men. While differences in observable characteristics explain part of the gender wage gap, a substantial portion remains unexplained. The decomposition results show that approximately 44% of the wage gap can be attributed to differences in observable characteristics, with age contributing the largest share, whereas 56% of the gap is associated with differences in returns to similar characteristics. By focusing specifically on highly educated workers, this study contributes to the literature on gender wage inequality in transition economies by demonstrating that wage disparities persist even within segments of the labor market where differences in human capital are relatively small. The findings highlight the importance of structural labor market dynamics that shape unequal returns to similar characteristics. From a policy perspective, the findings highlight the importance of improving pay transparency and ensuring equitable career opportunities within the labor market.