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The relationship between human capital and intention to work extra hours: evidence from the Vietnam labor force
Vo Thanh Tam1, Pham Huynh Nhu Y2, Nguyen Phuong Thao2
1University of Economics Ho Chi Minh City, Ho Chi Minh City, Vietnam. vothanhtam@ueh.edu.vn.
Background:
The study examines the relationship between human capital, including education and work experience, and the intention of Vietnamese workers to work extra hours. Working extra hours is common but poses risks to health and productivity, especially in developing economies with large informal sectors.
Methods:
We used data from the Vietnam Labor Force Survey with 200,242 observations. Because the dependent variable is a rare event, we applied Firth bias‑corrected logistic regression combined with the Karlson-Holm-Breen decomposition method to test the mediating role of income.
Results:
Employees with higher education or longer work experience have significantly lower intention to work extra hours. Income statistically accounts for a small portion of this association for education, but a negligible portion for experience. People with short‑term or no contracts, those working in individual businesses, or heads of households tend to be more willing to work extra hours. In contrast, lower intention is associated with working in the public sector, medium- and large-sized enterprises, or having an indefinite-term contract.
Conclusions:
High human capital is associated with reduced need for working extra hours intentionally, mainly through non-financial channels rather than through income. Investing in education, vocational training, expanding formal contracts, and improving incomes may be associated with reduced pressure to work involuntary extra hours.
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