Impacts of the 2011 Flood on the Employment Sector in Thailand
Keywords:
Labor Market, Earnings, Employment, Difference-in-DifferenceAbstract
This study seeks to examine the short-term impacts of the 2011 flood on the labor market outcomes of workers who lived in the flooded areas, with a particular focus on the 20 most affected provinces. Data used in the analysis are from Labor Force Survey (LFS) collected by Thailand’s National Statistical Office. Results suggest that the flood had a statistically significant negative impact on employment and earnings of temporary workers. Nonetheless, this flood did not have any statistically significant impact on the earnings of permanent workers. In addition, the flood created only a short-term impact. Findings that temporary workers and informal sector workers were more affected suggest that these workers are more vulnerable to shocks from natural disasters, mainly due to lack of social protection and access to credit. However, most of government measures to assist these two groups are still unclear. Lessons from the 2011 flood detailed in this study suggest the need for social security system reform in Thailand. This would provide a way to lessen or protect against negative impacts on labor of possible natural disasters and/or crises in the future.
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