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Career Crisis? Impacts of Financial Shock on the Entry-Level Labor Market: Evidence from Thailand

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Author Info
Machikita, Tomohiro

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Abstract

We utilize Thailand's the financial crisis in 1997 as a natural experiment which exogenously shifts labor demand. Convincing evidence from the Thailand Labor Force Survey support the hypothesis that both employment opportunities and wages shrunk for new entrants after the crisis. We find that workers who entered before the crisis experienced job losses and wage losses. But these losses were smaller than those of new entrants after the crisis. We also find that new entrants after the crisis experienced a 10% reduction in the overtime wages compared to new entrants before the crisis.

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File URL: http://ir.ide.go.jp/dspace/bitstream/2344/335/1/ARRIDE_Discussion_No.83_machikita.pdf
File Format: application/pdf
File Function: First version, 2006
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Publisher Info
Paper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number 83.

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Date of creation: Dec 2006
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Publication status: Published in IDE Discussion Paper. No. 83. 2006.12
Handle: RePEc:jet:dpaper:dpaper83

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Related research
Keywords: Crisis; Financial crises; Entry-Level labor Market; Job loss; Treatment Effects; Thailand; Labor market; Employment; Wages;

Find related papers by JEL classification:
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search

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This page was last updated on 2009-12-8.

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