Minimum Wage Effects on Labor Market Outcomes: Evidence from Thailand
Keywords:
Minimum Wage, Earnings, Disemployment, Matched ORGAbstract
This paper estimates the contemporaneous effects of the real minimum wage on wage, labor income, total compensation, overtime income, working hours, and disemployment using individual-level panel data, created from the matched-outgoing rotation group (matched-ORG) of the Labor Force Survey of Thailand between 2002 and 2013. We found that real wage and real total compensation were positively correlated with real minimum wage for both the gradual decline period (2002-2011) and the big jump period (2012-2013). Working hours were negatively correlated for the first period but positively correlated for the second one, while the opposite was true for the disemployment effect.
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