The Impact of Trade and Technology on Skills in Viet Nam
Market-oriented reforms, such as liberalizing trade and encouraging foreign direct investment, can generate large efficiency gains for a country. However, there is also concern that lower-skilled workers are increasingly being replaced by technology and that more globalized markets are harming employment opportunities. We investigate these issues by exploring household surveys from Viet Nam, combined with information on the task content of occupations, industrial exposure to international trade, and access to technology across the country. We assess the extent to which exposure to foreign markets and access to digital technologies affect the demand for different types of skills, by exploiting the fact that provinces vary in the degree of access to digital technologies and industries vary in the degree of exposure to foreign markets. We also extend much of the literature to consider the interplay between trade and technology on labor demand.