The Impact of Internet Usage on the Labor Market in Vietnam

This study investigates the impact of Internet usage on the probability of working in the non-farm self-employment sector and labor income in Vietnam. We employ the random walk Metropolis-Hastings Markov chain Monte Carlo method with data from the Vietnamese Household Living Standards Survey in 2018. Empirical results show that Internet usage increases the probability of self-employment in the non-farm sector by 11.8%. Educational attainment facilitates access to non-farm self-employment. Household characteristics such as age, gender, place of residence and marital status are also important factors that impact the probability of self-employment in the non-agricultural sectors. The impact of Internet usage on earnings is heterogeneous across gender, and dwelling areas. Internet significantly enhances earnings for male-headed households, and dwelling in urban areas. The results also point out that it does no good to participate in local associations which tend to reduce the probability of self-employment in the non-agricultural sectors as well as labor income.