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The determinants of income inequality in Thailand: A synthetic cohort analysis

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  • Paweenawat, Sasiwimon Warunsiri
  • McNown, Robert

Abstract

This paper presents tests and estimates of the human capital model of income inequality using synthetic cohort data for Thailand: 1992–2011. The model focuses on four primary determinants of income inequality: mean per capita income levels, the variances in years of education, in the number of children, and in the number of earners in the household. All of these factors are important sources of income inequality in Thailand, with relative impacts that differ across demographic groups and types of household structure. An inverted-U relation between mean per capita income levels and inequality is found, reflecting gender differences of the head of household, differences in household composition, and variation in access to finance. Although the human capital model emphasizes education, estimates presented here show other household characteristics, such as number of children and number of earners, can be even more important sources of inequality.

Suggested Citation

  • Paweenawat, Sasiwimon Warunsiri & McNown, Robert, 2014. "The determinants of income inequality in Thailand: A synthetic cohort analysis," Journal of Asian Economics, Elsevier, vol. 31, pages 10-21.
  • Handle: RePEc:eee:asieco:v:31-32:y:2014:i::p:10-21
    DOI: 10.1016/j.asieco.2014.02.001
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    Cited by:

    1. repec:taf:applec:v:50:y:2018:i:5:p:527-544 is not listed on IDEAS
    2. Lusi Liao & Sasiwimon Warunsiri Paweenawat, 2018. "Educational Assortative Mating and Income Inequality in Thailand," PIER Discussion Papers 92, Puey Ungphakorn Institute for Economic Research, revised Aug 2018.
    3. repec:wsi:serxxx:v:62:y:2017:i:02:n:s0217590815501167 is not listed on IDEAS
    4. repec:spr:jknowl:v:8:y:2017:i:4:d:10.1007_s13132-016-0431-3 is not listed on IDEAS
    5. Usman Qamar Sheikh & Muhammad Zafar Iqbal & Hafiz Khalil Ahmad, 2016. "The Impact of Foreign Aid, Energy Production and Human Capital on Income Inequality: A Case Study of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 5(1), pages 1-9, March.

    More about this item

    Keywords

    Human capital; Inequality; Synthetic cohort; Thailand;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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