The impact of social capital on wages of labors at SMEs in Vietnam

Abstract

Using multivariate regression models, this study assesses the impact of social capital on wages of workers in small and medium-sized enterprises (SMEs) in Vietnam. The estimation results show that workers who use personal social capital such as those from friends, relatives and colleagues to find jobs have significantly lower wages than with selfemployed workers through employment agency or recruitment sites. In addition, experience, education, occupation and gender are also important factors that affect workers’ wages.