Effect of minimum wage increase on employment and wage levels
We assess the employment and wage effects of the minimum wage increase in Thailand. We first explore the effects in the private non-agricultural sectors, which is covered by the minimum wage legislation, by exploiting the geographical variation in the minimum wages across provinces. Using differen...
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格式: | Final Year Project |
語言: | English |
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Nanyang Technological University
2021
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在線閱讀: | https://hdl.handle.net/10356/148527 |
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機構: | Nanyang Technological University |
語言: | English |
總結: | We assess the employment and wage effects of the minimum wage increase in Thailand. We first explore
the effects in the private non-agricultural sectors, which is covered by the minimum wage legislation,
by exploiting the geographical variation in the minimum wages across provinces. Using difference-in-differences (DD) approach we assess whether the provinces where the minimum wage increase “bites”
strongly into the provincial wage distribution exhibit a greater impact on the provincial labour market.
Subsequently, we disaggregated the analysis by conducting pairwise comparison of adjacent provinces
in four distinct regions. We found that an increase in minimum wage is associated with an increase
in employment but not with wage levels in the covered labour market. In addition, the results for
employment level are relatively consistent when we disaggregated the analysis for both covered and
uncovered labour markets. Lastly, we show that the minimum wage change may have caused uncovered
government employees including state-owned enterprises to enter the covered sector. At the same time,
we also observed an increase in proportion of private agricultural workers in the economy, suggesting
that more workers have entered this sector. |
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