Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/152417 
Year of Publication: 
2015
Citation: 
[Journal:] IZA Journal of Labor & Development [ISSN:] 2193-9020 [Volume:] 4 [Issue:] 21 [Publisher:] Springer [Place:] Heidelberg [Year:] 2015 [Pages:] 1-23
Publisher: 
Springer, Heidelberg
Abstract: 
Most of the minimum wage literature in developing countries provides supporting evidence of its effectiveness in reducing wage inequality. Using minimum wage data from Thailand (1985-2010), I find rather mixed outcomes. The minimum wage seems to help compress the lower part of wage distribution for employees in large businesses. However, the effect does not extend to small and medium firms in the covered sector. In contrast with its role as a benchmark for wage adjustment in Latin America, the minimum wage in Thailand does not reduce overall wage inequality owing to the high non-compliance rate and weak law enforcement, particularly in the informal sector.
Subjects: 
Minimum wage
Thailand
Wage inequality
Formal and informal sector
Compliance
JEL: 
J38
O17
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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