VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY LE THI THU TRANG OLDER PERSONS IN VIETNAM: EMPLOYMENT AND SOCIAL PROTECTION POLICY ISSUES MASTER'S THESIS VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY LE THI THU TRANG OLDER PERSONS IN VIETNAM: EMPLOYMENT AND SOCIAL PROTECTION POLICY ISSUES MAJOR: PUBLIC POLICY CODE: 8340402.01 RESEARCH SUPERVISOR: Associate Prof. GIANG THANH LONG Hanoi, 2021 ACKNOWLEDGEMENTS Foremost, I would like to express my special and sincere gratitude to my supervisor, Associate Professor Giang Thanh Long of the National Economics University, for his dedication, patience, motivation, and continuous support to my thesis study. His timely advices, scholarly advices have helped me in all the time of research and writing thesis. In the beginning, I was an inexperienced newcomer to this field and also the writing thesis activity.
Without his support and persistent help, I could not imagine that how to complete this task. Many thanks are dedicated to Dr. Nguyen Thuy Anh, Dr. Dang Quang Vinh, Dr.
Vu Hoang Linh, and Assoc. Phung Duc Tuan, Prof. Naohisa Okamoto in Master's Program in Public Policy (MPP) – Vietnam Japan University (VJU) for giving me great support and comments on my writing, providing invaluable guidance throughout my thesis procession. Their support with many academic experiences sharing helped me a lot in finishing the research.
Special thanks to Dr. Linh for your connection that help me have a precious opportunity to work with my advisor. I would also like to thank Ms. Pham Thi Lan Huong – Program Assistant of MPP who is always kind and helpful to me in many activities in the program.
Last but not least, I would say thanks to the Vietnam Japan University for giving me a chance to study here in the Master' program in public policy with many new things and new knowledge of the complexity and challenges of public policy as well as the capacity of solving the problem. That was the right choice to attending at VJU and MPP. CONTENT LIST OF FIGURES. iii LIST OF TABLES .iv LIST OF ABBREVIATIONS.
iii CHAPTER 1: INTRODUCTION .1 Overview of the research .4 The research structure .3 CHAPTER 2: LITERATURE REVIEW .1 Studies about the Vietnamese older persons .2 Studies about older persons in other countries .6 CHAPTER 3: DATA AND METHODOLOGY. 9 CHAPTER 4: FINDING AND DISCUSSION .1 Descriptive statistic of older persons and employment in Vietnam .2 Labour force participation of older persons .3 Characteristics of older person‟s work by the number of hours working in the past 7 days .4 Characteristics of older person‟s work by job position .5 Characteristics of older person‟s work by labour contract .6 Characteristics of older person‟s work by social insurance. 34 CHAPTER 5: POLICY IMPLICATIONS AND CONCLUSIONS.40 LIST OF FIGURES Page Figure 4. Working rate by age, gender and location.
Working rate by marital, house head, education level, professional skill 19 Figure 4. Number of hours working in the past 7 days. Labour force participation rate of older person by job position. Characteristics older person‟s work by job position.
Labour force participation rate of older person by labour contract. Characteristics of older person‟s work by labour contract (1). Characteristics of older person‟s work by labour contract (2). Characteristics of older person‟s work by social insurance.
33 i LIST OF TABLES Page Table 4. Descriptive statistics for the variables used. Workforce participation rate of older persons by characteristics. Number of hours working in the past 7 days.
Characteristics older person‟s work by job position. Characteristics of older person‟s work by labour contract. Characteristics of older person‟s work by social insurance. 32 ii LIST OF ABBREVIATIONS GSO: General Statistics Office ILO: International Labour Organization LFS: Labour Force Survey LFP: Labour Force Participation MOLISA: Ministry of Labor, Invalids and Social Affairs SDG: Sustainable Development Goals VHLSS: Vietnam Household Living Standards Survey VLSSL Vietnam Living Standard Survey VNAS: Vietnam National Aging Survey VHLSS: Vietnam Household Living Standards Survey iii CHAPTER 1: INTRODUCTION 1.1 Overview of the research The world is getting older: more than three quarters of countries will either be aging or already aged by 2050 (ILO 2020).
Population aging refers to changes in the age structure of a population such that there is an increase in the proportion of the elderly. The aging population is becoming one of the most urgent issues all over the world with about 147 countries which are going to be related to the aging population by 2050 (ILO 2020). As the population ages, so does the workforce, the world‟s older workers who participated in the labor market is increasing. As a consequence, the older workers in total workforce aged 55-64 years will increase significantly 13.2% in emerging countries, 17.7% in developed countries and 7.9% in developing countries by 2030 (ILO 2020).
Vietnam officially entered an aging period with many challenges from 2011. According to the General Statistics Office (GSO), by 2019, Vietnam has about 11.4 million older persons accounting for 12% of the total population, which including over 1.9 million (17%) people aged 80 and over, about 7.3 million (64%) elderly live in rural areas and over 3.1 million (27%) older people are enjoying pension and social insurance benefits. It is predicted that by 2050, Vietnam will be a "super old" population country with over 22 million elderly people, consist of 21% of the total population. Shortly, Vietnam will expectedly follow the trend of broadening older worker participation in the workforce.
As reported by the Ministry of Labour, Invalids and Social Affairs (MOLISA), a high rate of 60% of older people aged 60-69 and 30% of people aged 70-79 tend to continue work after retirement.2 Problem statement The becoming one of the fastest aging population in Asia that has created many challenges in developing policies and programs for the elderly in Vietnam. The majority of older persons are encountering difficulties and dilemmas in their lives, about 63.6 % of older persons live without pensions and social assistant (MOLISA, 1 2015), thus, they may live depending on their children‟s financial or other support and encounter multiple challenges in daily living. Due to the lower birth rate and the effects of rural-urban migration, the children‟s financial support will no longer ensure the income security for older people that make them tend to work more. The coverage of social protection programs for the elderly is limited because its schemes normally cover the good conditional households or working in the formal sector that can afford to make contributions to pension programs and the poor households that have able to get social assistance.
Thus, the middle group is missing in the social protection scheme. They might be middle income, older persons or workers in informal sector. A great number of older workers is confronting unstable income in Vietnam, because more than 60 percent of them have not been covered by any social insurance and retirement scheme (Evans et al. It means they have not been guaranteed a minimum income level regardless of their employment status.
Resolving the issues of old-age income security is important because of its large size, and it engages in inequality and poverty. Under the rapid aging of the population, a comprehensive and powerful social protection system might become a key solution to ensure and protect older person lives in Vietnam to “overcoming situations that adversely affect people's well-being” (UN Research Institute for Social Development). Paying attention to that issue, we do the research with a wide range of data, in particular, refer to employment factors to understand further the working status of Vietnamese older persons, as well as define the majority of work sectors they are taking part in, and labour contract status.3 Research objectives The general objective of this thesis is first to provide an overview of Vietnam‟s older workers. Secondly, identify the key issues and characteristics relevant to the employment of older persons and social protection.
Finally, from the working status findings of older people, we will make a discussion of policy implications to deal with social protection issues for the older workers in Vietnam. 2 The specific objectives are research questions as follows: How is the current situation of the employment and work sector among older people in Vietnam? What are the problems of employment and social protection system among older workers? What should the government of Vietnam address the social protection policy issues to protect the elderly in all work sectors? 1.4 The research structure Chapter 1: Introduction This chapter provides an overall review aging population, labour force trend and raises problem statement in term of the employment of older person and social protection policy need. It also provides the research objectives of the thesis. Chapter 2: Literature review This chapter will provide a review of previous studies on older employment all over the world as well as in Vietnam.
More significantly, from these papers, we will point out data collection and the method that studies used, and the social protection policy issues for elderly workers that they mentioned. Chapter 3: Data and methodology This chapter will make a description of data collection. Then, describe the methodology that will be used in this thesis as well as explain the variables in more detail. Chapter 4: Finding and discussion This chapter will discuss the result of the descriptive statistics in the previous part and explain how the variables relate to the working rate among older people.
Then, we will focus on what factors may risk the elderly workers and generate a discussion of major findings. Chapter 5: Policy implications and conclusions 3 From the estimated result in chapter 4, this chapter will prepare policy recommendations and key conclusions to address some social protection policy issues to support older people's work conditions are better and safer. 4 CHAPTER 2: LITERATURE REVIEW 2.1 Studies about the Vietnamese older persons Giang and Pfau (2010) discussed the working status and the determinants of taking part in the workforce of the Vietnamese elderly differentiated by gender. In this research, they mentioned three types of the working sector as non-agricultural work and agricultural work, and salary work.
By using data from VHLSS 2006 and employ logit models of groups of males, females, and all the elderly, the papers demonstrated that regardless of gender, senior citizens who live in urban areas, in households with more labour age people, live with higher income and enjoy social security are less likely to work than other elderly groups. Under the coverage of pension scheme in Vietnam still weak and limited, Ha Trong Nguyen et al. (2012) examined the impact of monetary transfers from non-coresiding children on the labour supply of their older person‟s parents. This paper used data from Vietnam Living Standard Survey conducted in 1997/98 by the Vietnamese General Statistical Office and a theoretical framework of Wolff (2006) and the econometric model covers two equations: one for the parents‟ labour supply and other for transfers made by non-coresiding children to their parents.
The research resulted that monetary transfers from non-coresiding children are greatly strong correlated with their senior citizen parents‟ needs. The amount of USD 83 (one million VND) of transfers per year is found to cut down the work supply of elderly mothers by half an hour per week. However, monetary transfers from children have no significant effect on the labor supply of older people fathers. Finally, monetary transfers will not be fully taking the place of parents‟ labor supply.
Refer to the main part of Vietnam‟s labour force, regarding informal sector research in Vietnam , Huong, Nguyen Thi Lan et al. (2013) provided comprehensive literature and data review. The effects of the informal work area on social protection and socio- economic development in Vietnam – a country that is growing economies in Asia but the coverage of social insurance is still low. One in five employees is covered by the public social insurance scheme.