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

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  • Machikita, Tomohiro

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.

Suggested Citation

  • Machikita, Tomohiro, 2006. "Career Crisis? Impacts of Financial Shock on the Entry-Level Labor Market: Evidence from Thailand," IDE Discussion Papers 83, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper83
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    More about this item

    Keywords

    Crisis; Financial crises; Entry-Level labor Market; Job loss; Treatment Effects; Thailand; Labor market; Employment; Wages; 金融危機; 学卒直後の労働市場; 雇用廃止; トリートメント効果; タイ; 労働市場; 雇用; 賃金;
    All these keywords.

    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; Information and Knowledge; Communication; Belief; Unawareness
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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