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The Wage Effect of the COVID-19 Pandemic by Company Size: Evidence from Thailand

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  • Hayakawa,Kazunobu
  • Sudsawasd,Sasatra

Abstract

Large enterprises tend to perform better than small and medium-sized enterprises (SMEs) in normal times. However, this general principle may not hold true during periods of instability such as large-scale pandemics. While large companies may be able to implement a work-from-home system more flexibly, SMEs may require government support. Against this backdrop, we empirically investigate the effect of the COVID-19 pandemic on the labor market, especially wages, in Thailand. By using the individual-level quarterly data in Thailand from 2019 to 2022, we examine the differences in the wage impact of the COVID-19 pandemic according to company size. Our finding is that, as in other countries, workers in larger-sized companies had significantly higher wages. However, we also find that the COVID-19 pandemic contributed to reducing the wage gap across company sizes on average, especially in the manufacturing sector.

Suggested Citation

  • Hayakawa,Kazunobu & Sudsawasd,Sasatra, 2024. "The Wage Effect of the COVID-19 Pandemic by Company Size: Evidence from Thailand," IDE Discussion Papers 945, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper945
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    Keywords

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    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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