Heterogeneous firms in international markets and gender inequalities: new evidence from Vietnam

Recent contributions in international economics have highlighted structural differences between firms actively participating in global markets and firms mostly operating in the domestic economy. Using Vietnamese firm-level data, we found that foreign and domestic firms with global ties – exporters, MNEs, and domestic firms belonging to Global Value Chains (GVCs) – play an important role in reducing gendered differences in employment opportunities in the formal sector, in particular for low-skilled female workers. Female workers are more likely than male workers to be employed in low-wage firms, but this gender gap is lower in MNEs, in particular those belonging to GVCs. This study provides evidence of important within-sector heterogeneity not only based on firms’ ownership but also on the intensity of participation in GVCs.