Reports
Discussion Papers
No.862 Heterogenous Impacts of Trade Liberalization on Individual Wages: Evidence from Thailand
by Sasatra SUDSAWASD and Kazunobu HAYAKAWA
September 2022
ABSTRACT
This study empirically examines how trade liberalization changes individuals’ wages, with evidence from Thailand. We primarily focus on the effect of Thailand’s tariff reduction under the ASEAN free trade regime. We use individual-level employment data for 2001, 2006, 2011, and 2016. We find that the reduction in AFTA tariffs in Thailand decreases the relative wages of the more educated and skilled workers. Thus, trade liberalization contributes to narrowing income inequality in terms of education and skills. Contrastingly, we do not find heterogeneous effects according to age, sex, marital status, location, or company size. Moreover, the results do not differ significantly between industries with or without international competitiveness.
Keywords: Household, Tariffs, Thailand
JEL classification: F15, F53
PDF available at http://hdl.handle.net/2344/00053488
Please note that discussion papers are works in various stages of progress and most have not been edited and proofread and may contain errors of fact or judgment. Revised versions of these papers may subsequently appear in more formal publication series. The views expressed in this publication are those of the author(s). The IDE does not guarantee the accuracy of the data included and accepts no responsibility for any consequences arising from its use.