Minimum Wage and Lives of the Poor: Evidence from Thailand

Wannaphong Durongkaveroj

No 76, PIER Discussion Papers from Puey Ungphakorn Institute for Economic Research

Abstract: Studying how the poor respond to the minimum wage policy in Thailand, I find that a notable increase in the minimum wage has no significant impact on employment among the poor even though wage plays a vital but heterogeneous role in determining employment. Also, this policy can significantly boost expenditure among the poor residing in provinces where the minimum wage is adjusted dramatically. Surprisingly, food does not account for the largest share of consumption as the income of the poor rises. The results are still robust to additional controls and redefinition of the poverty.

Keywords: Minimum Wage; Employment; Poverty (search for similar items in EconPapers)
JEL-codes: E24 I38 J31 J38 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2017-11
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