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Mapping Digital Skill Demands: Insights From Wage Patterns and Productivity in Vietnam

Economics of Transition / The Economics of Transition

Published online on

Abstract

["Economics of Transition and Institutional Change, EarlyView. ", "\nABSTRACT\nThis study examines the relationship between digital skill requirements and posted wages in online job advertisements in Vietnam from 2019 to 2024. Regression analyses incorporating fixed effects and augmented inverse‐probability weighting (AIPW) methods indicate widespread demand for digital skills across most occupational categories. Specifically, job postings explicitly requiring digital skills offer posted wages approximately 7.9% higher compared with similar positions without these skill requirements. Further analysis by digital skill proficiency reveals that specialist digital skills are associated with the highest wage premium, reaching 9.5%. In contrast, generic and complementary digital skills yield significant but comparatively lower premiums (around 5%). Conversely, explicitly listed foundational digital skills, such as proficiency with standard office software, correlate slightly negatively with posted wages, suggesting that employers increasingly view these competencies as minimum expectations.\n"]