The Roles of Formal Schooling in Workers' Job Self-selection and Income in Village-based Industrial Clusters: The Cases of Two Clusters in Northern Vietnam.

While village industries are known to play an important role in the development of rural areas in developing countries, little is known about village industries in transition economies. Also, little attention has been paid to the question of how human capital contributes to the choice of jobs and income of workers in these village industries. This paper inquires into the determinants of the workers' choice of jobs and income in two village-based industrial clusters in Northern Vietnam. We found that formal schooling plays an important role in the self-selection of jobs and income of workers in all of the villages.