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Minimum Wage: Does It Improve Welfare in Thailand?

Ximena Del Carpio (), Julian Messina () and Anna Sanz-de-Galdeano

No 7911, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We study the causal impact of the minimum wage on employment and welfare in Thailand using a difference-in-difference approach that relies on exogenous policy variation in minimum wages across provinces. We find that minimum-wage increases have small disemployment effects on female, elderly, and less-educated workers and large positive effects on the wages of prime-age male workers. As such, increases in the minimum wage are associated with increases in household consumption per capita in general, but the consumption increase is greatest among those households around the median of the distribution. In fact, rises in the minimum wage increased inequality in consumption per capita within the bottom half of the distribution.

Keywords: employment; poverty; household consumption; minimum wage; uncovered sector (search for similar items in EconPapers)
JEL-codes: J31 D31 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2014-01
New Economics Papers: this item is included in nep-lab, nep-lma, nep-ltv and nep-sea
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Citations: View citations in EconPapers (5) Track citations by RSS feed

Published in: Review of Income and Wealth, 2019, 65(2), 358-382

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