Does Gender Influence the Provision of Fringe Benefits? Evidence From Vietnamese SMEs

Abstract

This contribution studies the provision of fringe benefits using a unique survey of small and medium-sized enterprises (SMEs) in Vietnam. Analysis of the survey reveals that women who own SMEs are more likely than men who own similar firms to provide employees with fringe benefits such as annual leave, social benefits, and health insurance. This gender effect exists especially with regard to mandatory social insurance and is robust to the inclusion of standard determinants of wage compensation. The study also explores whether this finding is linked to gender differences in social networks and workforce structure, worker recruitment mechanisms, and the degree of unionization. However, these factors cannot fully account for the observed differences in fringe benefits along the “gender of owner” dimension. There remains a sizable and unexplained fringe benefits premium paid to employees in women-owned firms.

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