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Heterogenous impacts of trade liberalization on individual wages: Evidence from Thailand

Year: 2023

Type: article

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.

Source: The Developing Economies

DOI: 10.1111/deve.12375

Authors: Sasatra Sudsawasd, Kazunobu Hayakawa

Institutions: National Institute of Development Administration, Japan External Trade Organization, Institute of Developing Economies, Japan External Trade Organization

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities, No poverty

Open Access status: bronze

OpenAlex ID: W4381849509

FWCI: 0.782

Cites: 4

Cited by: 2

Related to: 10