Does the minimum wage reduce wage inequality? Evidence from Thailand

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Leckcivilize, A.: Does the minimum wage reduce wage inequality? Evidence from Thailand. In: IZA Journal of Labor and Development 4 (2015), Nr. 1, 21. DOI:

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Sum total of downloads: 114

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. JEL classification: J38; O17
License of this version: CC BY 4.0 Unported
Document Type: article
Publishing status: publishedVersion
Issue Date: 2015
Appears in Collections:Wirtschaftswissenschaftliche Fakultät

distribution of downloads over the selected time period:

downloads by country:

pos. country downloads
total perc.
1 image of flag of Germany Germany 83 72.81%
2 image of flag of United States United States 15 13.16%
3 image of flag of Thailand Thailand 3 2.63%
4 image of flag of No geo information available No geo information available 2 1.75%
5 image of flag of Romania Romania 2 1.75%
6 image of flag of Japan Japan 2 1.75%
7 image of flag of China China 2 1.75%
8 image of flag of Netherlands Netherlands 1 0.88%
9 image of flag of United Kingdom United Kingdom 1 0.88%
10 image of flag of Czech Republic Czech Republic 1 0.88%
    other countries 2 1.75%

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