The Effects of Provincial ICT Development on Employability: Evidence from Vietnam Labor Force

This research investigates the impact of Information and Communication Technology (ICT) development on employability and employment quality in Vietnam, utilizing data from the Vietnam Labor Force Survey and ICT datasets for the period 2015–2021. Using a two-stage least squares model, the study finds a statistically significant positive relationship between the ICT index and indicators of employability and employment quality. Key findings show a significant positive correlation between improvements in a province’s ICT index and the probability of residents securing employment. Specifically, a 0.1-point increase in the ICT index, representing a 10% improvement on its 0–1 scale, was associated with a 7.91 percentage point increase in the number of wage-earning jobs among the employed population. Additionally, there was a 9.27 percentage point increase in the likelihood of obtaining a job in the formal sector and a 5.23 percentage point increase in the overall probability of securing a formal job. Conversely, the same increase in the ICT index was associated with a 12.98 percentage point decrease in the likelihood of individuals being employed in vulnerable jobs. These results suggest that ICT development enhances employment quality in Vietnam by promoting formal employment and reducing labor vulnerability. JEL Classification O15, J24, O33, R11