Skill formation and transition to productive livelihood in Vietnam

Vietnam has attained outstanding performance in education during the past two decades. However, inequality in educational opportunities aggravates disparities among children and threaten the improvement of labour productivity. The underlying mechanism for transmitting inequality and role of skills in the process remaining unclear motivates this thesis. It aims to study how skills interact with environmental factors to determine outcomes on education and livelihoods in Vietnam. Firstly, Chapter 1 examines how skills predict dropping out Then Chapter 2 inspects whether full-day schooling reduces educational inequality. Finally, Chapter 3 investigates the relative importance of skills in determining labour market outcomes. To this end, the research applies diversified quantitative approaches using data from the Young Lives in Vietnam. The contributions of the thesis are threefold, namely taking into consideration the non-cognitive skill in the analysis, addressing the interaction between social background and school environment, and the measurement errors accompanied poor proxies for skills in Vietnam. The thesis hints at further levelling educational opportunities of children and enhancement of non-cognitive skills for greater outcomes in life and economic growth.

Keywords: Skills, inequality of opportunity, dropping out, full-day schooling, learning progress, returns to skills, Vietnam.