Informal-to-Formal Employment Transition: Cox Model Analysis of the 2020 Vietnam Labour Force Survey Data


Pham Ngoc Toan and Nghiem Thi Ngoc Bich

Abstract: The authors employed a survival rate analysis and a Cox model through the risk function to explore the impact of individual worker characteristics on the transition from informality to formal employment in Vietnam. The results of an analysis of panel data from the 2020 quarterly survey showed that the likelihood of transition from informal to formal employment does not differ by gender. Level of technical qualification and age of workers are the main factors that explain the movement of workers from informal to formal sectors. The analysis findings also revealed urban disparities that urban mobility of workers is easier than rural mobility. Furthermore, workers’ industry and occupation play a role in their ability to switch employment.
Keywords: job transition, informality, labour and employment, Cox model