Minimum Wage: Does it Improve Welfare in Thailand?

Ximena Del Carpio (), Julian Messina and Anna Sanz‐ de‐Galdeano
Authors registered in the RePEc Author Service: Anna Sanz-de-Galdeano

Review of Income and Wealth, 2019, vol. 65, issue 2, 358-382

Abstract: We study the causal impact of the minimum wage on labor market outcomes, household consumption, inequality and poverty in Thailand by relying on policy variation in minimum wages over time across provinces. We find that minimum‐wage increases have a large and significant impact on the likelihood of working in the uncovered sector among workers with elementary education. However, the impact is very small and insignificant among other labor market groups. In contrast, the minimum wage has large positive effects on the formal sector wages of low‐earning workers, such as the young, elderly and low educated. Increases in the minimum wage are associated with reductions in household poverty and consumption inequality at the bottom half of the distribution.

Date: 2019
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https://doi.org/10.1111/roiw.12360

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Working Paper: Minimum Wage: Does It Improve Welfare in Thailand? (2014)
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