Labor and Its Efficiency in Equitized State-owned Enterprises in Vietnam

Abstract

This study is conducted for evaluating changes in labor efficiency of state-owned enterprises after equitization. Data were collected from audited financial statements and reports of labor and average income in 138 state owned enterprises after equitization. After calculating labor efficiency according to revenue and earnings of enterprises in the sample, we apply the comparative method for labor, average income and labor efficiency before and after equitization. Then, we use the Wilcoxon Signed-Rank Test to compare the fluctuation in the ratios between two years after equitization with one year prior to equitization. The results show that after equitization, enterprises achieve an increase in average number of labor, improved average labor income and enhanced labor efficiency.

Keywords: Equitization, state-owned firm, labor efficiency, Vietnam.

DOI: 10.7176/RJFA/10-5-10

Publication date:March 31^st 2019