Immigrant-employing Firms in Thai Manufacturing

Abstract

This study provides a picture of immigrant employment in manufacturing of Thailand. It distinguishes immigrant-employing firms from non-immigrant firms. The data from the Productivity and Investment Climate Survey (PICS) of Thailand in 2007 reveals that 19 percent of 1,043 firms in 9 industries employed immigrants. These shares range widely from a high of 35 percent in food processing to a low of 5 percent in electronic components. Textiles and food processing industries hire 70 percent of the total of 10,837 immigrants. The average share of immigrants in total firm employment is 5 percent, ranging from a high of 14 percent in food processing to a low of 0.3 percent in electrical appliances. Comparing immigrant-employing firms to non-immigrant firms, we find that immigrant firms tend to have higher export share and sale growth, but lower foreign share in ownership, computer-controlled machinery, capital per worker and skill per worker, and pay lower wage to both skilled and unskilled workers. Analyzing attributes that may influence immigrant employment, we find that firms with high export share and high sale growth tend to employ immigrants, while firms with high foreign share in ownership, high share of controlled-computer machinery and high average wage paid to workers tend not to employ immigrants.