Nghiên cứu các nhân tố ảnh hưởng đến kết quả tìm việc trở lại của thanh niên thất nghiệp trên địa bàn thành phố hà nội TT TIENG ANH

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INTRODUCTION

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1. Necessity
Unemployment always leaves long-term consequences for the unemployed,
their families and the whole economy. Particularly for the young workforce, youth
unemployment is seen as a global economic problem, a waste of labour resources in
the long run, especially for countries that are entering the population aging period
like Vietnam.
In Hanoi, there were about 70,000 unemployed people in 2019, of which youth
unemployment accounted for 67.2% (corresponding to 46.7 thousand unemployed
youth), leading to be one of the localities with the highest youth unemployment rate
nationwide. This is a very alarming number when the core of the workforce accounts
for a large proportion of the total unemployed, posing many challenges to the socioeconomic and social protection fields in the Capital. Therefore, youth unemployment
in Hanoi is always the top concern of researchers and policy makers in order to limit
the negative consequences as well as utilize young labour force in the context that
Vietnam is in the demographic window period and is starting to enter the aging
population.
For a long time in the world, there have been many studies, including qualitative,
quantitative or empirical research, long-term or cross-sectional study on the topic of
return to work (or re-employment) of the unemployed has made a significant
contribution in terms of theoretical and practical basis to enhance understanding of reemployment, being a basis for policy makers to propose solutions to solve

unemployment, improve the quality of re-employment activity. In Vietnam, the topic of
unemployment has also been studied in the early 2000s with a number of studies on
issues related to job creation for workers, thereby contributing to unemployment
reduction. However, there is still a lack of in-depth research to understand the theory and
practice related to the results of re-employment as well as the factors affecting the reemployment outcomes of unemployed youth – youth accounting for 42.1% of the total
workforce in the world as estimated by the International Labour Organization.
Therefore, it iss necessary to do a research on the topic : “Research on factors
affecting re-employment outcomes of unemployed youth in Hanoi city” to synthesize,
develop theories and analysis of factors affecting the re-remployment outcomes of
unemployed youth, thereby discussing some solutions to improve the return- to-work
results of this group.
2. Research objectives and questions
The doctoral thesis is carried out with the following objectives:
To identify the characteristics of unemployed youth and the problems of youth
unemployment
- To determine factors reflecting the re-employment outcomes of unemployed youth
To determine the factors affecting the re-employment outcomes of unemployed
youth, thereby building a research model among these factors as a theoretical
framework for the thesis.
To analyze the impact level of factors affecting the re-employment outcomes of
unemployed youth.


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To discuss a number of solutions to overcome the work on management, support
unemployed youth to re-employ, policy orientation for the period 2021-2025.
The doctoral thesis aims to answer the following research questions:
- What are the characteristics of unemployed youth? What are the factors
reflect the re-employment outcomes of unemployed youth?
- What are the factors affect the return to work of unemployed youth and to
what extent?
- What are the measures/solutions should be taken by state management
agencies in charge of labour and policy makers to promote the return-to-work
outcomes of unemployed youth?
3. Research object and scope
Research object: factors affecting the return to work of unemployed youth.
Research scope:
Scope on space/subjects: unemployed youth in the formal sector in Hanoi city.
Scope of data and time frame: The study was conducted on a group of youth who had
time to declare unemployment and receive unemployment insurance (UI) benefits
from January 1, 2017 to the end of December 31, 2018.
Scope of content: Factors reflecting re-employment outcomes and factors affecting
re-employment outcomes.
4. Research method
To answer the research questions and achieve the research objectives, the
author uses quantitative research method.
Building measurements and questionnaires: the measurement of variables in
the research model is inherited and developed from previous studies. For the new
variables proposed in the research model to overcome the research gap, the author
proposes a measurement suitable for the research objectives.
Data collection and analysis: the doctoral thesis uses primary data collected
through a survey by questionnaire with the support of the Hanoi Employment Service

Center and secondary data from the report of the Department of Employment (Ministry
of Labour - Invalids and Social Affairs). The data is processed and analyzed on
Microsoft Excel and IBM SPSS 22 software.
5. New contributions of the doctoral thesis
Theoretical aspect:
Systematizing theories related to re-employment, re-employment outcomes, and at
the same time defining a clear viewpoint of re-employment and re-employment
outcomes of the unemployed to use in the thesis.
Building and testing a new model on factors (human capital, job search motivation
and UI policy) affecting the return-to-work of unemployed youth in the formal
section in Hanoi city through the intermediary factor is job search behavior.
Supplementing the factor of satisfaction level with income reflecting the reemployment results of unemployed youth.
Supplementing factors related to the Vietnamese context affecting the re-employment
outcomes of unemployed youth such as foreign language proficiency, job search
skills, family pressure and social pressure into the research model; The factor of UI


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policy to support unemployed people under the Vietnamese law is also included in
the research model.
Practical aspect:
- The thesis has specifically determined the degree of influence of each factor on the
re-employment outcomes of unemployed youth in the formal sector in Hanoi in 20172018.
- The analysis results show that: (i) human capital (including factors: work experience,
qualifications, working skills, foreign language proficiency and job search skills) has
an both direct and indirect impact (through job-seeking behavior) on the reemployment outcomes of unemployed youth. In which, the impact of working skills is
the most significant, and foreign language proficiency plays an increasingly important

role in the job search process due to the increasing demand for skilled workers to meet
the requirements in terms of both technical qualification and communication at
workplace; (ii) The factors of job search motivation have an impact on re-employment
outcomes through job search behavior. Two factors that have been newly added in the
study which are family pressure and social pressure, play a dominant and equal role
in the positive impact on re-employment results; (iii) All three unemployment support
regimes under the current UI policy in Vietnam have a positive relation with reemployment outcomes through job search behavior. The job counseling and
recommendation regime has the most significant impact on re-employment results,
and unemployment benefits not only compensate people after being unemployment,
but also motivate them to continue participating in the job search process.
- From the research findings, some recommendations are proposed that will help state
management agencies on UI, policy makers, socio-political organizations and
associations in the following directions: (i) Strengthening the legal framework and
organizing the implementation of UI policy in a strict, transparent and fair manner;
(ii) Ensuring proper and sufficient unemployment benefits for the unemployed to find
suitable jobs soon; (iii) Adjusting to improve the quality of the vocational training
support benefit, focusing on improving working skills combined with additional
training to improve the foreign language of unemployed youth to meet the
requirements of the labour market; (iv) Improving the quality of job counseling and
recommendation activity and supplementing counseling/training on job search skill;
(v) Propagating to raise awareness among young people about the consequences of
unemployment, the role and meaning of participating in social insurance (SI) in
general and UI in particular to be protected by insurance policies when facing risks.
6. Thesis structure
The main content of the thesis is structured as follows:
- Chapter 1: Literature review
- Chapter 2: Theoretical basis, research model and hypotheses
- Chapter 3: Research method
- Chapter 4: Research findings
- Chapter 5: Discussions and recommendations

CHAPTER 1. LITERATURE REVIEW


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1.1. Factors affecting re-employment outcomes of unemployed
From the late 1990s, studies confirmed that re-employment (or return-to-work)
outcomes is a rather complicated concept and needs to be reflected by multidimensional factors, because the component factors used to determine the return to
work outcomes are quite complex. Factors to measure return to work are often
interrelated. The factors reflecting the return to work of the unemployed that these
scholars propose are also varied, summarized in the table below:
No.

Factor

1

Employment status

2

Wage

3

Degree of compatibility
between professional
qualifications and work

4

Intention to turnover

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Satisfaction on new job

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Job search duration

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Number of job offers

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Job improvement

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Author
Brasher and Chen (1999)
Kanfer et al. (2001)
Pransky et al. (2005)
Young et al. (2005)
Wasiak et al. (2007)
Wanberg et al. (2016)

Brasher and Chen (1999)
Wanberg et al. (2002)
Wanberg et al. (2016)
Brasher and Chen (1999)
Wanberg et al. (2002)
Wanberg et al. (2016)
Brasher and Chen (1999)
Wanberg et al. (2002)
Wasiak et al. (2007)
Wanberg et al. (2002)
Pransky et al. (2005)
Young et al. (2005)
Kanfer et al. (2001)
Wanberg et al. (2002)
Wanberg et al. (2016)
Kanfer et al. (2001)
Wanberg et al. (2002)
Pransky et al.(2005)
Young et al. (2005)
Wasiak et al. (2007)

1.2. Factors affecting re-employment outcomes of unemployed people


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Many international studies have been carried out in order to build models of
factors affecting the return to work of unemployed people from different perspectives

and approaches.
Approach from the impact of internal factors of human capital on reemployment outcomes of the unemployed done by scholars such as Maxwell (1989),
Moynihan et al., (2003), McArdle et al., (2007), Riddell and Song (2011), Dănăcică
(2015), Amato et al., (2016) and Gnambs (2017) have shown that human capital
includes characteristics such as qualifications, working skills, and work experience
that have a direct and indirect impact (through job search behavior) on return-to-work
outcomes of the unemployed.
Approach from the impact of external factors, including factors on job
search motivation and UI policies to support unemployed people to find job.
For job search motivation, including factors such as network of relationships
(Wanberg et al., 2000) or social support, financial difficulties of the unemployed
(Šverko et al., 2008) have an positively indirect relations with re-employment
outcomes through job search behavior. Adaptability to work and career orientation
are considered as motivation for job seeking in the study of McArdle et al., (2007).
Quantitative analysis has shown that both these factors contribute significantly to the
job search results of the unemployed through the intermediary factor of job search
activity. This result is supported by Koen et al., (2010) in the research on the impact
of job seekers' job adaptability on the quality of jobs found (expressed in the number
of job offers). Based on the theory of planned behavior, research by Van Hooft (2014)
has shown that motivational factors (such as financial need, job-seeking attitude,
social pressure on job-seeking activities, assessment on self-efficacy in job search)
has an indirect positive impact (through positive job search behavior) on job search
results.
Some scholars study the re-employment outcomes of unemployed people
by looking at the impact of UI policies such as Vouri and Vesalainen (1999),
Graversen and Van Ours (2008) or Graversen and Van Ours (2008). They all
agreed that UI programs (such as labour market information, compulsory
employment program) create a positive change on job search activities, thereby
having a clear impact on the ability to find job of the unemployed.
In Vietnam, the topic of unemployment has also been interested in since the

early 2000s, such as Le Thi Hoai Thu (2005), Nguyen Quang Truong (2016), Tran
Minh Thang (2018). These researchers studied insurance unemployment from the
perspective of state management of UI and support regimes for employees when
being unemployed in order to set out directions and solutions to improve the legal
framework for UI, strengthen the state management of UI, thereby improving the
effectiveness of UI policy. Besides, there have also been a number of studies on
issues related to job creation for workers, thereby contributing to reduce
unemployment such as the studies of Bui Ton Hien (2009), Nguyen Le Minh (1990),
Nguyen Van Quang (2003), Bui Anh Tuan (1999). In particular, Ngo Quynh An


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(2012) studied the factors affecting the self-employment ability of young people in
order to enhance the ability to create self-employment for young people in Vietnam.
Although the author's target is Vietnamese youth in general, regardless of the
employed or unemployed, researches have also shown that the demographic
characteristics, social capital, human capital (experience, education, training) have an
effect on youth's ability to create self-employment, thereby reducing the youth
unemployment rate in general.
1.3. Conclusion
Scientists/researchers have studied and developed factors reflecting the reemployment outcomes of unemployed people, but there are still some research "gaps"
as follows:
Firstly, the content of the factors reflecting the re-employment outcomes is still
overlapping, for example, using both the job search duration (the speed of finding a
new job) and the duration of receiving UI. Moreover, the job search duration does not
completely reflect the results of finding a job again because it depends a lot on the
wishes and aspirations of the job seekers.

Secondly, instead of wage, it is necessary to consider the income from the new
job (including non-salary/wage income) to more comprehensively reflect the
satisfaction level of job seekers in terms of economic aspect. In addition, previous
studies only integrated salary along with other factors reflecting general job
satisfaction or welfare (internal and external) of employment, but did not analyze
independently.
Studies on factors affecting re-employment outcomes of unemployed people are
approached by scientists according to three main groups of factors: human capital,
job search motivation and support policies. Besides, in many studies, job search
behavior is an intermediary factor in the relation between influencing factors and job
search results. However, there are still some research "gaps" that need to be further
studied as follows:
Firstly, all studies are conducted in European countries, where the social
protection system, especially UI, is highly developed. Therefore, many social aspects
have not been mentioned. For example, factors stemming from socio-cultural aspect,
pressure to have a job from family, social pressure, personal honor.
Secondly, although human capital factors are concerned in most of the studies,
the factor of foreign language proficiency has not been considered. However, in
Vietnam, when the process of international integration is taking place strongly, many
foreign-invested companies and corporations established in Vietnam use a lot of local
workers, so their foreign qualifications are not good enough can negatively affect the
re-employment outcomes.
Thirdly, many authors are interested in the impact of the unemployed's ability
(knowledge, experience, working skills, etc.) on their job search results, but the factor
of job search skills has not been mentioned.


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Fourthly, studies were done on the sample of unemployed people in general,
not many specific studies for the group of unemployed youth.
Fifthly, In Vietnam, recently, there have been a number of studies on youth
employment and unemployment, but there is a lack of research on the factors
affecting the job search process and re-employment outcomes of the unemployed to
be a basis for a multidimensional approach to unemployment in general and youth
unemployment in particular.
From there, this thesis focuses on: (i) proposing factors to reflect the reemployment outcomes in a comprehensive way, in which to overcome the research
gap related to job search duration and the wage/salary in previous studies; (ii)
building a research model with three groups of factors (human capital, job search
motivation, UI policy) affecting re-employment outcomes in accordance with the
characteristics of the legal system and policies on UI, labour market and Vietnam's
culture - society through the addition of factors on UI policy and job search
motivation factors (family pressure, social pressure affecting job search results).
Besides, foreign language proficiency and job search skills will be newly added
compared to previous studies to examine the impact of human capital on job search
results; (iii) conducting research on the unemployed youth in formal sector to address
the research gap in previous studies.
CHAPTER 2. THEORETICAL BASIS, RESEARCH HYPOTHESES AND
RESEARCH MODEL
2.1. Theoretical basis
2.1.1. Unemployment
2.1.1.1. Definition
Unemployment is a situation in which people who are in working age, able to
work, looking for a job and willing to work, but not in employment.
2.1.1.1 Classification of unemployment
Unemployment can be classified into three main categories: temporary
unemployment, cyclical unemployment and structural unemployment.
2.1.1.3. Consequences of unemployment

Unemployment always leaves negative long-term consequences for the
unemployed, their families, society and the economy.
2.1.2. Unemployed youth
2.1.2.1. Definition
The Youth Law no.57/2020/QH14 regulates “The youth are Vietnamese
citizens aged between full sixteen and thirty years old (National Assembly, 2020).
The thesis applies the youth definition under the Youth Law 2020 to identify the
research object: “unemployed youth are Vietnamese citizens aged between full sixteen
and thirty years old who are able to work, looking for a job and willing to work but
not in employment”.
2.1.2.2. Youth unemployment


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Like unemployment in general, youth unemployment is always a top concern
of all countries and economies because it brings negative impacts on the economy
and society, affecting life of the unemployed individuals and their families.
Sustainable underemployment, especially among youth, often affects workers' future
employment prospects in the long term, and they often accept unsuitable jobs for the
rest of their lives (ILO, 2006). There is clear evidence of a link between youth
unemployment and social exclusion in young people from feelings of vulnerability,
even idleness, of being useless when being unemployed in long time (Ryan, 2001).
2.1.3. Re-employment and re-employment outcomes
2.1.3.1. Re-employment
Re-employment of the unemployed is a movement process to achieve the
purpose of finding a job after a period of unemployment. This process includes
various steps such as searching for job vacancies, preparing a resume, submitting a

job application, participating in a job interview and receiving a job offer.
2.1.3.2. Re-employment outcomes
Re-employment outcomes are a combination of measurable characteristics,
reflecting the job search results of unemployed people.
2.1.4. The foundation theories related to the research
2.1.4.1 Lý thuyết hành vi có kế hoạch
Theory of planned behavior (TPB) developed by Ajzen (1991) said that
intention is the determining factor of behavior, and is determined by three variables
(attitude, subjective norm and perceived behavior control). In the thesis, TPB is
applied to build an overall model for the research, in which the job search behavior is
the mediating factor in the relationship between the impact factors and reemployment outcomes. Attitude and perceived behavior control are represented by
factors related to the human capital of the unemployed, while the subjective norm is
the impact of external factors on the job search process (including social pressure,
and supporting policies).
2.1.4.2. Person-Environment Fit Theory
Person-Environment Fit Theory (P-E fit) originated in the 1980s with studies
of stress stemming from the individual-environment relationship (Caplan, 1983;
Caplan, 1987; Caplan and Van Harrison, 1993). The basic rationale of this theory is
very simple: If you work in an optimally compatible environment, everything good at
work will come, for example, improving work attitude and work performance, less
stress… The theory of P-E fit is applied in the thesis in 2 aspects. First, it
supplements the basis to propose human capital factors affecting re-employment
outcomes. Second, based on P-E fit, the thesis proposes three factors reflecting the
quality of job found by the unemployed, including: (i) the satisfaction level of income
to current needs; (ii) the match between qualifications and work experience with the
new job; (iii) intention to turnover.
2.2. Research hypotheses and research model
2.2.1. Determining the factors reflecting the re-employment outcomes of the
unemployed

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(a)
(b)
(c)
(d)

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In order to fully reflect the re-employment outcomes of unemployed youth in
formal sector in Vietnam, the author proposes 3 factors including:
Satisfaction level of income
The match between qualifications and working experience with the new job
Intention to turnover
2.2.2. Proposing factors affecting the re-employment outcomes of the
unemployed and research hypothesis
To overcome the research gaps, the author focuses on the following groups of
factors:
Human capital factors: working experience, qualifications, working skills, foreign
language proficiency, job search skills.
Job search motivation factors: social network, family pressure, social pressure,
career orientation.
UI policy: unemployment benefits, job counseling & recommendation, vocational
training support
Mediating factor: Job search behavior
From the literature review, combined with the foundation theories, the author
proposes the research hypotheses, as follows:

Hypothesi
Content
s
H1.1a
Working experience has a direct positive impact on re-employment
outcomes
H1.1b
Qualifications have a direct positive impact on re-employment
outcomes
H1.1c
Working skills have a direct positive impact on re-employment
outcomes
H1.1d
Foreign language proficiency has a direct positive impact on reemployment outcomes
H1.1e
Job search skills have a direct positive impact on re-employment
outcomes
H1.2a
Working experience has a positive impact on job search behavior
H1.2b
Qualifications have a positive impact on job search behavior
H1.2c
Working skills have a positive impact on job search behavior
H1.2d
Foreign language proficiency has a positive impact on job search
behavior
H1.2e
Job search skills have a positive impact on job search behavior
H2a
Social network has a positive impact on job search behavior

H2b
Family pressure has a positive impact on job search behavior
H2c
Social pressure has a positive impact on job search behavior
H2d
Career orientation has a positive impact on job search behavior
H3a
Unemployment benefit has a positive impact on job search behavior
H3b
Job counseling & recommendation has a positive impact on job search
behavior


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H3c
H4.1
H4.2

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Vocational training support has a positive impact on job search behavior
Job search behavior has a positive impact on re-employment outcomes
Job search behavior mediates the relation between human capital, jobsearch motivation, UI policy and re-employment outcomes
2.2.3. Research model
The model is as shown below:

CHAPTER 3. RESEARCH METHOD
3.1. Design research process
3.1.1. Research approach
There are two research approaches: deductive approach and inductive

approach, this study uses a deductive approach. Saunders and Lewis (2012) have
defined “Deductive approach involves the testing of a theoretical proposition by
using a research strategy designed to perform this test”. In other words, the deductive
approach should be used when a researcher needs to develop a theory or hypothesis,
then design a research strategy to test this theory/hypothesis (Thornhill et al., 2009)
3.1.2. Selection of research method
In the doctoral thesis, in order to achieve the research objectives, the author
chooses to use the quantitative research method to match the deductive research
approach and the author's intention in collecting and analyzing data.
3.1.3. Research process
The research process consists of 8 steps proposed by the author: (1) Identify
the general research topic; (2) Literature review; (3) Research questions; (4)
Developing research models and research hypotheses; (5) Building measurements,


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data collection tools; (6) Conducting data collection; (7) Analyzing and processing
data; (8) Research findings.
3.2. Measurements and questionnaire
The list of measurements used in the thesis are as follows:
Notation
EXP1
EXP2
QUA1
QUA2
QUA3
SKIL1

SKIL2
SKIL3
SKIL4
LANG1
LANG2
LANG3
JFSK1
JFSK2
JFSK3
JFSK4
SN1
SN2
SN3
SN4
SN5
SN6

Content
Working experience
My working experience is enough for me to find a job that I want
Companies/employers will be impressed with my working experience
Qualifications
My qualifications are enough to get a job in the field of training
My qualifications can meet the requirements of the job I want to find
Companies/employers will be impressed with my qualifications
Working skills
My working skills are enough to find a suitable job
My working skills can meet the requirements of the job I want to find
The skills to do the jobs I want are always updated
Companies/employers will be impressed with my working skills

Foreign language proficiency
My foreign language proficiency is enough to find a suitable job
My foreign language proficiency can meet the requirements of the job I want to
find
Companies/employers will be impressed with my foreign language proficiency
Job search skills
I know my strengths to increase my chances of finding a job
I have the ability to prepare a good resume
I can contact recruiters and convince them to consider hiring me
I can make the best impression of myself in a job interview
Social network
I reached out to friends or acquaintances for advice and guidance regarding
employment
I called or met some people in person to inquire about a particular job or a
particular company
I asked acquaintances for referrals to some people who might have useful
information or advice about job
I talked to my former boss or former colleagues about potential job opportunities
for me that they knew about
I contacted people in the field of my work who could help me find a job
I contacted some people who will help me find a job
Family pressure


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Notation
FPR1
FPR2

FPR3
SPR1
SPR2
SPR3
SPR4
CO1
CO2
CO3
CO4
CO5
UIA1
UIA2
JR1
JR2
JR3
VS1
VS2
VS3
JSB1
JSB2
JSB3
JSB4
INC1
INC2
INC3

Content
My family's financial/economic status was affected after I lost my job
I feel the tension increase in my family after unemployment
Family members think I should find a job as soon as possible

Social pressure
Most of my relatives think that I should find a job as soon as possible
Most of my friends think that I should find a job as soon as possible
Most of my former colleagues think that I should find a job as soon as possible
Most of my other acquaintances think that I should find a job as soon as possible
Career orientation
I have a clear idea of the job I want to find
I have a clear idea of what kind of company I want to work for
I can decide for myself if I should change careers or not
I can decide for myself what kind of work I really enjoy
I can make my own career change plan
Unemployment allowance
Unemployment allowance helps me overcome financial difficulties during
unemployment
Unemployment allowance is really necessary in the process of finding a new job
Job counseling and recommendation
I registered and participated fully in job counseling and recommendation sessions
I got useful information from job counseling and recommendation activities
Job counseling and recommendation activities were really necessary in the
process of finding a new job
Vocational training support
I registered and participated fully in vocational training support
Vocational training support helped me improve my working skills
Vocational training support was really necessary for me to find a new job
Job search behaviour
I actively looked for work through different channels
I spent time every day looking for job-related information
I was ready to do a job that I love
I was ready to do a job that's not my favorite
Income satisfaction

The income at my new job helped me overcome financial difficulties
The income at the new job meets my current needs
I am more satisfied with current income than my previous job
The match between qualifications and working experience with new job


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Notation
MATCH1
MATCH2
MATCH3
INTENT1
INTENT2

Content
What I trained before is suitable for the new job
My working experience matches the new job
Career opportunities at the new job are clearer than the old one
Intention to turnover
I will be looking for a new job next year
I often think about quitting my job

3.3. Data collection and analysis
3.3.1. Sample size
Based on a number of studies in the world, the representativeness of the sample
selected for the survey will be appropriate when the sample size is 5 observations for an
estimate. The survey model in the thesis includes 54 variables, so the required sample
size to achieve the required accuracy is from 54 * 5 = 270 observations or more. The

sample used in the survey is 542 observations, so the representativeness of the sample is
guaranteed for the research.
3.3.2. Data collection method
In the study, the author collects primary data through survey by questionnaire
with unemployed youth in formal sector (who declared and enjoyed UI benefits) in
Hanoi using convenience sampling method. The initial total of observations was 585,
after checking and cleaning for invalid observations, the final sample of the study
was 542 observations (43 observations were excluded due to age exceeding 30 at the
time of unemployment).
3.3.3. Data processing method
The whole process of data analysis was performed on IBM SPSS 22 software
in 7 steps as follows: (i) Data collection and processing; (ii) Descriptive statistics;
(iii) Scale reliability check; (iv) Exploratory Factor Analysis (EFA); (v) Confirmatory
factor analysis (CFA); (vi) Test hypothesis by linear structural model (SEM); (vii)
one-way ANOVA.
CHAPTER 4. RESEARCH FINDINGS
4.1. Research context
4.1.1. Unemployment situation in Hanoi
Unemployment situation and UI implementation in Hanoi in the period 20152019 are shown in the table below.
Content
Total labour force (mil. people)
Total number of unemployed (people)
Unemployed youth (15-29) (people)
Gender
+ Male
+ Female
Area
+ Urban

2015

3,82
73.830
55.036

2016
3,82
72.966
51.394

2017
3,83
79.489
57.652

2018
3,85
74.264
39.772

2019
4,12
69.584
46.739

31.466
23.569

25.564
25.830

35.369
22.283

18.945
20.827

21.358
25.382

35.415

32.370

37.660

28.684

26.722


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+ Area
Qualification
No qualification
Elementary-level
Intermediate-level
College
University/higher
Number of
Total

people having
<= 24 years old
decision to
Male 25- 40 years old
receive
>40 years old
monthly
unemploymen Femal <= 24 years old
25- 40 years old
t allowance
e
>40 years old
(người)
Number of people receiving job counseling &
recommendation
In which: Number of people were introduced
jobs
Number of people having decision on vocational
training support (people)
Average unemployment allowance (mil. dong)
Average duration of unemployment allowance
(month)

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19.620

19.025

19.992

11.088

20.017

19.469 16.464 21.820 16.552
995
1.051
2.272
601
1.606
2.499
3.099
1.790
12.292
9.626 11.120
5.247
20.674 21.755 19.341 15.582
32.715 39.685 47.822 57.741
1.688
1.171
1.062
1.248
10.782 13.688 16.942 20.671
2.303
2.702
3.538
4.480
3.168
2.421

2.098
2.669
12.985 17.420 21.084 25.238
1.789
2.283
3.098
3.435

16.422
776
2.696
5.585
21.260
68.691
1.708
23.103
5.386
3.258
30.387
4.849

32.173

40.362

48.229

58.336

69.490

4.620

4.821

4.451

10.991

25.678

1.979

2.148

1.970

2.652

9.080

2,89

3,17

3,60

3,87

4,34

4,04

4,21

4,49

4,65

4,59

4.1.2. Sample description
The official sample of the doctoral thesis has 542 observations with some key
demographic characteristics presented in the table below:
Characteristic
Number (people)
Rate (%)
1. Gender
Male
285
52,6
Female
257
47,4
2. Marital status
Single
226
41,7
Married
299

55,2
Divorced
17
3,1
3. Immigration status
No permanent residence in Hanoi
445
82,1
Permanent residence in Hanoi
97
17,9
4. Number of dependents in the family and have to take care of
0
203
37,5
1
171
31,5
2-3
144
26,6
From 4
24
1,6
5. Number of working years before unemployment
3 years or less
102
18,8
From 3-5 years
220

40,6


15

15

Over 5 years
220
40,6
4.2. Scale reliability analysis (Cronbach’s Alpha)
The results of the reliability analysis are shown in the table below.
No.
Factor/Component
Cronbach's Alpha
1 Human capital
Working experience
0,674
Qualifications
0,813
Working skills
0,859
Foreign language proficiency
0,894
Job search skills
0,649
2 Job search motivation
Social network
0,887
Family pressure

0,650
Social pressure
0,763
Career orientation
0,637
3 UI policy
Unemployment allowance
0,679
Job counseling & recommendation
0,830
Vocational training support
0,910
4 Job search behaviour
0,672
5 Re-employment outcomes
Income satisfaction
0,730
Match between qualifications and working
0,846
experience with new job
Intention to turnover
0,689
Thus, Cronbach's Alpha coefficient shows that the scale is reliable.
4.3. Exploratory factor analysis results (EFA)
The results of analysis by EFA show that using factor analysis is appropriate
with research data. The KMO coefficient is greater than 0.5, the Bartlett test has pvalue < 0.05, the factor loading coefficients of variables are all greater than 0.5, the
TVE is greater than 50%.
4.4. Confirmatory factor analysis (CFA)
In the results of CFA analysis, the measurement model is relatively consistent
with the basic required values shown in the following table:

CMIN/df
<2
1,805
The results of CFA analysis of model have Chi-square/df = 1,805 < 2 with p =
0.000. Other indicators show that this model is consistent with the research data (CFI
= 0.943; TLI = 0.933; GFI = 0.907; RMSEA = 0.039 < 0.08). Thus, there is no
correlation between the errors of the variables, so unidirectionality is achieved. The


16

16

correlation coefficient between the components is less than 1 with standard deviation
less than 0.05. Therefore, the scales used in the thesis all achieve discriminant
validity. The normalized weights all meet the allowable standards (>=0.5) and have
statistical significance of 0.000. It can be concluded that, the variables used to
measure and the total variance extracted are >0.5, so these components are all
reliable.
4.5. Structural Equation Modeling (SEM)
The general objective of the thesis is to study the impact of human capital, job
search motivation and UI policy on job search behavior and then on re-employment
outcomes through two impacts: (i) direct impact of human capital on re-employment
outcomes (direct impact) and (ii) mediating impact through job search behavior. The
SEM results are shown below:

From the analysis results of the SEM, it has been shown that the model is
completely consistent with the survey data. This result shows that the parameters have
fully met the criteria of the measurement model with the survey data (Nguyen Dinh Tho
and Nguyen Thi Mai Trang, 2008)

CMIN
df CMIN/df
P
TLI
CPI RMSEA
Standard values
>>
>0
<2
< 0,05 > 0,9 > 0,9 < 0,08
Results
1832,36 1091
1,680
0.000 0,926 0,934
0,035
The results of estimation of unstandardized coefficients, normalized
coefficients, standard errors, critical values and test of statistical values are shown in
the table below.
StandUnstandImpact
dardize
SE
R
P
ardized
d


17
OUT
OUT

OUT
OUT
OUT
JSB
JSB
JSB
JSB
JSB
JSB
JSB
JSB
JSB
JSB
JSB
JSB
OUT

-

-

-

-

-

-

17

<--- EXP
0,018
0,017
0,002
10,296
***
<--- QUA
-0,003
-0,005
0,045
-0,066
0,948
<--- SKIL
0,276
0,393
0,018
15,204
***
<--- LANG
0,038
0,057
0,003
11,189
***
<--- JFSK
0,315
0,21
0,025
12,675

***
<--- EXP
0,149
0,166
0,012
12,538
***
<--- QUA
-0,039
-0,072
0,004
-10,99
***
<--- SKIL
0,063
0,102
0,006
11,411
***
<--- LANG
0,021
0,036
0,002
10,708
***
<--- JFSK
0,004
0,003
0,103
0,039

0,969
<--- SN
0,017
0,024
0,002
10,377
***
<--- FPR
0,279
0,272
0,021
13,384
***
<--- SPR
0,204
0,27
0,015
13,72
***
<--- CO
-0,054
-0,076
0,005
-11,078
***
<--- UIA
0,135
0,159
0,011
11,764

***
<--- JR
0,103
0,165
0,008
12,323
***
<--- VS
0,032
0,081
0,003
11,48
***
<--- JSB
0,036
0,031
0,003
10,492
***
The results of estimating the direct impact of human capital factors on reemployment outcomes show that:
The impact coefficient of QUA on OUT is not clear because the P value > 0.1 (not
statistically significant at 10%). Therefore, there is not enough basis to accept
hypothesis H1.1b.
The impact coefficients of the variables EXP, SKIL, LANG and JFSK are positive,
showing a positive impact of the variables on OUT with statistical significance at
99%. This result supports the research hypothesis H1.1a, H1.1c, H1.1d and H1.1e
The results of estimating the impact of human capital factors on the mediating
variable of JSB show that:
EXP, SKIL and LANG have a positive impact on job search behavior with the
estimated coefficient greater than 0 and statistically significant at 99%. Therefore,

hypotheses H1.2a, H1.2c and H1.2d are accepted.
The impact coefficient of QUA on JSB is negative, showing the negative relation
between these two variables, so the hypothesis H1.2b is not accepted.
Similarly, hypothesis H1.2e on the positive impact of JFSK on JSB is also not
accepted because the impact coefficient is not statistically significant with P>0,1.
Job search motivation factors:
The coefficient to estimate the impact of 3 out of 4 factors on the mediating variable
JSB has a positive value, including: SN, FPR and SPR. At the same time, these
estimates are statistically significant at 99%, so the study accepts the hypothesis H2a,
H2b and H2c.
Career orientation factor has a negative effect on job search behavior with a negative
impact coefficient and at the 99% statistical significance level, so the hypothesis H2d is
not accepted.


18
-

-

18

UI policy:
All three factors of UI policy including UIA, JR and VS have positive coefficients on
job search behaviour with statistical significance of 99%, therefore hypotheses H3a,
H3b and H3c are supported by the results of the analysis.
Job search behaviour (JSB):
The impact of the mediating variable JSB on re-employment outcomes (OUT) is
positive with an impact coefficient of 0.031 and statistically significant with P<0.01,
so the hypothesis H4a is supported. Therefore, it can be concluded that job search

behavior is the mediator in the relation between human capital, job search motivation,
UI policy and re-employment outcomes (hypothesis H4b is supported).
Indirect impacts of factors on human capital, job search motivation and UI
policy on re-employment outcomes through the regulation of the mediating variable
of job search behavior are shown in the table below:
Impact
Coefficient
Human capital
OUT
<--EXP
0,0051
OUT
<--JFSK
0,0001
OUT
<--QUA
-0,0022
OUT
<--LANG
0,0011
OUT
<--SKIL
0,0032
Job search motivation
OUT
<--CO
-0,0024
OUT
<--SN
0,0007

OUT
<--FPR
0,0084
OUT
<--SPR
0,0084
UI
OUT
<--UIA
0,0049
OUT
<--JR
0,0051
OUT
<--VS
0,0025
The results of estimating the indirect impact of human capital on reemployment outcomes also show that only the qualification (QUA) has a negative
impact on re-employment outcomes while other factors have a impact.
For the factors of job search motivation, there are 3 variables that have an
indirect positive impact on re-employment outcomes, which are mediated by job
search behaviour with the following order of impact level: family pressure (FPR) >
social pressure (SPR) > social network (SN). The indirect impact of career orientation
(CO) on re-employment outcomes is negatively.
All three factors on UI policy have an indirect positive impact on reemployment outcomes, in order of impact level: unemployment allowance (UIA) >
job counseling and recommendation (JR) > vocational training support (VS).
On the basis of quantitative analysis, the thesis synthesizes the research
hypothesis tests in the table below:
Hypothesi
Content
Result

19
s
H1.1a

19

Working experience has a direct positive impact on re- Accepted
employment outcomes
H1.1b
Qualifications have a direct positive impact on re- Not
employment outcomes
accepted
H1.1c
Working skills have a direct positive impact on re- Accepted
employment outcomes
H1.1d
Foreign language proficiency has a direct positive impact Accepted
on re-employment outcomes
H1.1e
Job search skills have a direct positive impact on re- Accepted
employment outcomes
H1.2a
Working experience has a positive impact on job search Accepted
behavior
H1.2b
Qualifications have a positive impact on job search Not
behavior
accepted

H1.2c
Working skills have a positive impact on job search Accepted
behavior
H1.2d
Foreign language proficiency has a positive impact on job Accepted
search behavior
H1.2e
Job search skills have a positive impact on job search Not
behavior
accepted
H2a
Social network has a positive impact on job search behavior Accepted
H2b
Family pressure has a positive impactt on job search Accepted
behavior
H2c
Social pressure has a positive impact on job search Accepted
behavior
H2d
Career orientation has a positive impact on job search Not
behavior
accepted
H3a
Unemployment benefit has a impact on job search behavior Accepted
H3b
Job counseling & recommendation has a positive impact on Accepted
job search behavior
H3c
Vocational training support has a positive impact on job Accepted
search behavior

H4.1
Job search behavior has a positive impact on re- Accepted
employment outcomes
H4.2
Job search behavior mediates the relation between human Accepted
capital, job-search motivation, UI policy and reemployment outcomes
4.6. Analyzing the difference in the re-employment outcomes of unemployed
youth in Hanoi city
The one-way ANOVA test to find out the difference in the re-employment
outcomes of unemployed youth in Hanoi according to 3 basic characteristics shows
that:


20

20

- There is a difference in the mean value of income satisfaction intention to
turnover by gender (male and female).
- There is a difference in the mean value of income satisfaction and intention to
turnover by qualifications of unemployed youth.
- There is a difference in the mean value of the income satisfaction by duration
of unemployment.
CHAPTER 5. DISCUSSIONS AND RECOMMENDATIONS
5.1 Discussions
5.1.1. Human capital and re-employment outcomes
Human capital (including factors: working experience, qualifications, working
skills, foreign language proficiency and job search skill) has both direct and indirect
impact on the re-employment outcomes of unemployed youth.
The level of impact of the factor of working skills on re-employment outcomes

is the largest in the direct impact, and stands the second place in the indirect effect,
showing the importance of working skills in the job search process of unemployed
youth. This result is fully supported by Vinokur and Schul (2002) and Wanberg et al.
(2002), according to which recruitment decisions are greatly influenced by working
skills of job seekers or recruiters often pay more attention to working skills when
making decision.
Job search skill is a new factor proposed by the author to the model, which is
also proven to have a significant direct and indirect impact on re-employment
outcomes (ranked 2nd in the group of human capital factors). Similar to working
skills, the factor of foreign language proficiency is also proposed by the author to be
more suitable with the actual context in Vietnam. The results of quantitative analysis
show that foreign language proficiency has a direct and indirect positive impact on
the outcomes of job search. Currently, workers in general, especially in industrial
parks and export processing zones, are increasingly required to equip necessary
foreign language skills to serve their jobs. At least, it is necessary to have basic
communication with foreign shift leaders and managers, and understand simple
instructions on machinery for work.
With a sample of the unemployed in formal sector in Hanoi, the thesis found
that working experience positively contributed to their re-employment results. The
role of working experience in job search activities of the unemployed is completely
consistent with the results in many studies around the world such as Moynihan et al.
(2003), Gnambs (2017), etc.
The analysis results have shown that there is no evidence that qualification has
a significant positive impact on the re-employment outcomes of the unemployed (due
to P>0.1). This is not consistent with some previous research results such as Maxwell
(1989), Riddell and Song (2011), Moynihan et al., (2003), etc. The data in the thesis
show that today employers have may not really pay attention to the qualifications and
formal training levels of the employees. In recent years, employers have given more
priority to workers with experience, vocational skills, foreign languages, etc., which
are factors that can be effectively verified and applied right at work. Having a good

21

21

degree/certificate but lacking working experience or skills is a common problem
among young people who are unemployed, especially those who have just graduated
from universities. In addition, people with a higher level of training often have higher
requirements on salary as well as working conditions or even want to work in large
companies in order to "commensurate" with their qualifications. Therefore, this is
also a barrier that makes it difficult for unemployed youth to return to work as from
an unemployment status. It totally contrasts to when they are employed and looking
for a new job to change.
5.1.2. Job search motivation and re-employment outcomes
From the theoretical model and the results of quantitative research, it has been
confirmed that the factors of job search motivation have an indirect impact on the reemployment outcomes through the mediating variable, which is job search behavior.
In which, two new factors proposed by the author to the research model are family
pressure and social pressure, which play a dominant and equivalent role in the
positive impact on return-to-work results (with an equal positive coefficient). The
idea of studying these two factors comes from the socio-cultural context in Vietnam.
Pressures from family or society motivate unemployed people to participate more in
job-seeking activities, so they will have more active job-seeking behavior (impact
coefficient on mediating variable of family and social pressure is the largest positive
and equivalent among the four factors of job search motivation). From there, it will
help them find jobs soon and direct them to jobs with income that meet their current
financial needs. This result is also consistent with the theoretical model of planned
behavior (TPB) and social cognitive theory. Accordingly, when unemployed people
feel pressure, they will adjust their behavior accordingly to get rid of these pressures.
The relation between social network and re-employment outcomes is positive

and indirect through job search behavior. This result is supported by the studies of
Wanberg et al. (2000), Wanberg et al. (2002), Bonoli and Turtschi (2015). Social
network is strongly associated with positive job search behavior and in turn increases
the likelihood of re-employment.
Career orientation of unemployed youth in the sample is proven to have a
negative impact on job search results through job search behavior, however, this
finding contradicts the views of some scholars such as Wanberg et al. (2002),
McArdle et al. (2007), Zikic and Saks (2009). This contrast can partly be explained
because when people have a clear career orientation, they believe in their own ability
to find a job, so the level of positivity in job search activities decreases. Instead, they
are only aiming for some job positions that are really suitable for them and are not
ready for job opportunities that they consider less favorable. Therefore, the clearer the
career orientation, the less job search activities, thus indirectly affecting the job
search results.
5.1.3. UI policy and re-employment outcomes
All three support benefits for unemployed people under the UI policy proposed
by the author to be included in the study are confirmed to have a positive relationship
on the re-employment outcomes through the mediating of job-seeking behavior.
Although the UI benefits are different according to the specifics of each country, this


22

22

result is similar to the findings from studies of many scholars around the world such
as Vouri and Vesalinen (1999), Graversen and Van Ours (2008) and Koen et al.
(2015).
Quantitative results show that the job counseling and recommendation benefit
plays a key role in the relation between UI policy and re-employment results,

followed by unemployment allowance. The job counseling and recommendation help
to grasp the job needs and abilities of the employees, serve as a basis for providing
information on employment, labour market suitable for employees, and advice on job
selection or participation in training to improve qualifications and skills before
applying for a job. Participating in job counseling and recommendation sessions (to
provide information on the labour market, job vacancies, improving job-seeking
skills as well as understanding of the unemployed) creates a positive change on jobseeking activities, promoting job-seeking behavior of unemployed. Furthermore, the
job counseling and recommendation sessions also act as a bridge between the
unemployed and employers that have recruitment needs in accordance with the
qualifications, capacity and aspirations of the unemployed. Thereby, helping to
shorten the time to find a job and increase the ability to find a suitable job.
Unemployment allowance plays an important role in compensating workers for
income lost after unemployment. Currently, policy researchers are recommending
that governments, especially developed countries, be wary of unemployment
allowance that is too "generous", because it may discourage unemployed people from
looking for job, leading to the reverse effect because the unemployed are too
dependent on the allowance. Currently in Vietnam, according to the Law on
Employment, the monthly unemployment allowance is equal to 60% of the average
monthly wage of 6 consecutive months before the worker becomes unemployed on
which unemployment insurance premiums are based, but must not exceed 5 times the
basic wage level, for workers receiving wages under the State-prescribed regime, or
must not exceed 5 times the region-based minimum wage level under the Labor
Code, for workers who pay unemployment insurance premiums under the wage
regime decided by employers at the time of termination of the labour contract or
working contract. The duration of allowance receipt does not exceed 12 months. With
this regulation, the unemployment allowance in Vietnam is assessed to be enough for
the unemployed to maintain their life and still create a positive motivation for them to
find a job soon, not relying on the allowance. Therefore, the positive relationship
between unemployment allowance and re-employment outcomes is completely
consistent with reality.

The vocational training support for the unemployed is designed to create
conditions for the unemployed to have the opportunity to learn a new occupation to
change careers and return to work in a sustainable way. The analysis results of the
thesis are supported by previous studies such as Jacobson et al. (2005), Stenberg and
Westerlund (2008), Cavaco et al. (2013). However, from the quantitative results, it
can be seen that the impact coefficient on re-employment outcomes of the vocational
training support factor is only equal to half of that of job counseling and
recommendation. This shows that the influence and role of vocational training on re-


23

-

-

23

employment outcomes of the unemployed is not really large compared to
expectations.
5.2. Recommendations to improve the re-employment outcomes of
unemployed youth
Based on the analysis of the impacts of factors on the re-employment outcomes
of unemployed youth presented above, the author will make recommendations for the
Government and state management agencies of unemployment insurance, sociopolitical organizations, associations and unemployed youth in order to improve the
re-employment outcomes in the direction of:
- Strengthening the legal framework and the implementation of UI policy.
- Ensuring allowance so that unemployed can find suitable jobs soon
- Adjusting the vocational training support, focusing on improving working
skills in combination with raising the foreign language of the unemployed to meet the

requirements of the labour market
- Improve the quality of job counseling and recommendation activities and
supplementing job search skills in counseling.
- Propaganda to raise awareness of youth about the consequences of
unemployment, and the role and meaning of social insurance in general and
unemployment insurance in particular.
- Vocational training institutions affiliated to socio-political organizations need
to research and develop vocational training and orientation programs; connecting
labour supply and demand in accordance with the needs of the labour market and
capacity of each individual youth; helping youth to have a clear career orientation and
equip them with the necessary skills and knowledge to return to work.
- Promoting the role as a bridge between employers and youth, helping
unemployed youth quickly find sustainable jobs.
- Regularly keeping in touch, paying attention to unemployed youth to have
timely solutions to solve financial difficulties, relieve psychological stress, family and
social pressure in order to avoid negative consequences of prolonged stress.
- It is necessary to strictly comply with the regulations on declaration of
employment status information during the period of unemployment, to avoid frauds
and violations;
5.3. Some limitations of the doctoral thesis and research plan of the author
In addition to the above research results and findings, this thesis still has
limitations and needs further research in the future specifically:
The study is currently only on a sample of unemployed youth in formal sector in
Hanoi, so in order for the findings and recommendations to be applicable across the
country, it is necessary to expand the scope of the research in terms of research
objects and space.
In order to accurately and sustainably reflect the re-employment outcomes of youth, it
is necessary to carry out a longitudinal study to monitor the quality of employment
for at least 1-3 years after when re-employed. From there, the basis for assessing the
job quality and the job satisfaction being more convincingly.

24

-

24

Therefore, in the near future, the author will conduct further researches in the
following direction:
Expanding the scope of research throughout the country, or at least over 6 provinces
representing 6 socio-economic regions
Conducting longitudinal research to have enough time to assess the employment
status and quality of jobs that workers find after unemployment.
Adding a group of unemployed youth in the informal sector as a control group in the
study, from which it is possible to compare the differences between the two groups in
the impact of factors on the re-employment outcomes, especially the factors of
unemployment insurance policy.
CONCLUSION
The research results bring both theoretical and practical significance, creating
an overall picture of the factors affecting the re-employment outcomes of
unemployed youth in formal sector as well as the factors reflecting the reemployment results. This is also the basis for the author to propose recommendations
to improve the return to work of unemployed youth in formal sector.
However, the study still has some limitations in terms of scope, sampling
method, sample size as well as choosing a more comprehensive research method. In
addition, there may be other factors affecting the return to work of unemployed youth
that have not been exploited, mentioned in this study. These will be suggestions for
the author to carry out further research directions in the future.