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Distribution of Income, Labour Productivity and Competitiveness: Is the Thai Labour Regime Sustainable?

Author

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  • Bruno Jetin

    (CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique)

Abstract

This article takes the case of Thailand to present the distribution of income and the evolution of the profit rate in a low-wage country which belongs to the second generation of newly industrialising countries. We show that during the boom years the high rate of profit was not based on a continous process of modernisation, but rather on a redistribution of income in favour of capital. We also analyse the link between the distribution of income and competitiveness. We show that labour income repression is not necessary to maintain competitiveness. Quite to the contrary, in this period of international crisis the labour income share should recover lost ground if Thailand and other Asian countries want to rebalalance growth in favour of domestic demand.

Suggested Citation

  • Bruno Jetin, 2012. "Distribution of Income, Labour Productivity and Competitiveness: Is the Thai Labour Regime Sustainable?," Post-Print halshs-03227139, HAL.
    • Handle: RePEc:hal:journl:halshs-03227139
    DOI: 10.1093/cje/ber048
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03227139v2
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    References listed on IDEAS

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    1. Douglas Gollin, 2002. "Getting Income Shares Right," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 458-474, April.
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    6. Bruno Jetin, 2010. "Industrial upgrading and Educational upgrading: two critical issues for Thailand," Post-Print halshs-01995547, HAL.
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    Cited by:

    1. Cristina Froes De Borja Reis & Carlos Aguiar De Medeiro, 2014. "From Export Specialization In Natural Resources To Diversification In Manufacturing: The Development Strategies Of Indonesia, Malaysia And Thailand Since 1980," Anais do XLI Encontro Nacional de Economia [Proceedings of the 41st Brazilian Economics Meeting] 156, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    2. Bruno Jetin, 2009. "Le développement économique de la Thaïlande est-il socialement soutenable ?," Post-Print halshs-00531674, HAL.
    3. Bruno Jetin & Ozan Ekin Kurt, 2016. "Functional income distribution and growth in Thailand: A post Keynesian econometric analysis," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 39(3), pages 334-360, July.
    4. Dasgupta, Sukti. & Bhula-or, Ruttiya. & Fakthong, Tiraphap., 2015. "Earnings differentials between formal and informal employment in Thailand," ILO Working Papers 994896403402676, International Labour Organization.
    5. Sandrine Michel, 2015. "Education in Thailand: When economic growth is no longer enough," Post-Print hal-01671765, HAL.

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