The Impact of the 300-Baht Minimum Wage Policy on Agricultural Workers in Thailand
Thailand used the 300-baht minimum wage policy outside the critical sector, like agriculture, for solving wage and employment problems from 2013 to 2016. By the way, Thailand has the Rice Pledge policy for subsidizing the farmer due to the rice price instability from 2011 to 2014. Hence, both policies would affect agricultural workers at the same time. It is the cause of this study to investigate the impact of the 300-baht minimum wage policy on the wageand employment structure of the agricultural workers in Thailand excluded the rice pledge policy effects.The study used the dataset from 2007 to 2016 of Thai Labor Force Surveys (LFS) compiled by the National Office of Thailand (NSO) and set the wage and employment distribution as dependent variables and used the index of age, gender, occupation, household member, and education to be the individual-level control variables. The work used the Synthetic control method (SCM) to evaluate the effects of the policy intervention by constructing a synthetic match for the treated group by using the control group to see what will happen if the treated group does not receive any policy. The SCM estimated the effect of the minimum wage policy eliminated the Rice Pledge policy effects. Then, using the Singh-Maddala distribution for observing the distribution changing after minimum wage policy intervention. Finally, using the Copula function to find the distribution difference between before and after policy intervention.The result of the impact of the 300-baht minimum wage policy accorded the study hypothesized was that the policy did not transform the overall agricultural structure but affected some provinces in the country. It showed that the number of agricultural employees related to agricultural wages. The policy changed agricultural wages in the provinces that depended on worker employees in the labor market — meanwhile, the relative wages related to agricultural employment. The policy affected agricultural employment in the provinces that had a high agricultural wage.
Keywords - Minimum Wage, Agriculture, Wage, Employment, Synthetic Control Method, Singh-Maddala, Copula.