Minimum Wage: Does It Improve Welfare in Thailand?
AbstractWe 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.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7911.
Length: 32 pages
Date of creation: Jan 2014
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Find related papers by JEL classification:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-02-08 (All new papers)
- NEP-LAB-2014-02-08 (Labour Economics)
- NEP-LMA-2014-02-08 (Labor Markets - Supply, Demand, & Wages)
- NEP-LTV-2014-02-08 (Unemployment, Inequality & Poverty)
- NEP-SEA-2014-02-08 (South East Asia)
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