Arbeitspapier

Minimum Wage: Does It Improve Welfare in Thailand?

We 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.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 7911

Classification
Wirtschaft
Wage Level and Structure; Wage Differentials
Personal Income, Wealth, and Their Distributions
Subject
minimum wage
household consumption
poverty
employment
uncovered sector

Event
Geistige Schöpfung
(who)
Del Carpio, Ximena
Messina, Julián
Sanz-de-Galdeano, Anna
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2014

Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Del Carpio, Ximena
  • Messina, Julián
  • Sanz-de-Galdeano, Anna
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2014

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