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Trends of labour demand for high-skilled workers and their wages in Thailand.

INTRODUCTION

Under rapid industrialization and globalization, not only final product and service markets, but also the labour markets are making their adjustment to response to the globalization. The impact of the globalization on the labour market can be classified into 2 main brackets, which are demand for labors and their wages.

In the first bracket, the employment growth of high-skilled and low-skilled workers in the OECD countries during 1980-1993 demonstrated a significant difference between 2 types of workers as shown in Figure 1. This phenomenon appears globally in both developing and developed countries.

[FIGURE 1 OMITTED]

There is no exception for Thailand where the increasing trends in the employment of high-skilled and low-skilled workers appeared during the first half of 2000s (Figure 2). The employment growth of high-skilled workers was 3.3 compared to 0.9 of low-skilled ones.

The other bracket regards to the wage. It has been found in a number of literatures that trade widens income gap between high-skilled and low-skilled workers. For example, the relative wages of nonproduction workers (as a proxy for high-skilled workers) to the production workers (as a proxy for low-skilled workers) in the US have explicitly increased since 1980s. Not only the highly developed countries but also the developing countries are found increasing in high-skilled and low-skilled wage gaps. A great number of studies emphasized on the wider gaps of skilled premium and the larger income inequality; for instance, Zhu and Trefler (2003) Filho, Gonzaga and Terra (2001).

Most empirical studies claimed that these impacts are due to one major structural change in the labour market, which is a shift-up trend towards demand for high-skilled workers (For instance, De Laine, Laplagne, and Stone, 2000).

The principle explanations for the adjustment of demand for high-skilled workers in the globalization are rationalized into 2 ways: trade hypothesis, and technical-change hypothesis. The first concept assumes that an increase in the relative demand for goods and services requiring high-skilled workers to make them pushes the demand for high-skilled workers. On the other hand, the lower demand for low-skilled workers is due to a decrease in the demand for goods and services provided by them. This implication is called the trade hypothesis.

The second explanation is that a technical progress leads to a change in production process and organizational changes. The progress enhances the working process and the labour relation through the information and communication technologies. The technological change increases the demand for high-skilled workers economy wide as the new and advance technologies are biased toward this group of workers. The overtime changes then benefit the employment and wage prospects of high-skilled workers relative to the lower ones. This implication is known as the Skill Biased Technical Change (SBTC) hypothesis.

Not only the demand for workers but also the supply of workers as well as characteristics of the labour market are important to the labor market adjustment. Since changing environment on labour markets is a vital factor effecting on the cost of production. This study aims to investigate the changing feature of the demand for and supply of high-skilled and low-skilled workers and observe its change in their wages in Thailand.

The structure of the study is divided into 5 parts. The first part is to introduce the motivation and the objectives. The second part is to explore the trend in high-skilled and low-skilled wages together with relative employment trends of Thailand in an international comparison. It is interestingly found that the relative wage trend of high-skilled to low-skilled workers in Thailand had changed since the 2000s. This changing trend was different from the other countries particularly the US. The fact finding in the second part then inspires the later section to investigate possible reasons of the switching wage trend. So, the literatures and theoretical backgrounds investigated in the third part emphasized on the influential factors of demand for labor and wages. The forth part is to determine the possible factor responsible for the change in the relative wage trend. The fifth part describes the concluding remarks.

RELATIVE EMPLOYMENT AND WAGES BETWEEN HIGH-SKILLED AND LOW-SKILLED WORKERS: AN INTERNATIONAL COMPARISON

As we aim to explicitly describe the changing trend of employment and wages of Thailand, the trend of the relative employment and relative wages between high-skilled and low skilled workers is explored. It also attempted to compare the data to other countries i.e. China, the US, and Germany. The result implies that only the relative wages of Thai labour market in the 2000s has moved to the different direction to the previous period.

Source of Data for an International Comparison

The data for the international comparison is based on 2 main sources: the International Labor Organization's Annual October Inquiry and the Freeman and Oostendorp Occupational Wages around the World (OWW). We complimented these 2 data sets together to compare the relative wages and employment of high-skilled and low-skilled workers of selected occupations during 1991 - 2006 among China, the US, Thailand, and Germany. The US data during 2002 -2006 are derived form Occupational Wages Survey, Bureau of Labor Statistics.

The classification of each skilled group is selected by occupations as below. High-skilled workers include mathematics teachers (third level), teachers in languages and literature (third level), teachers in languages and literature (second level), mathematic teachers (second level), technical education teachers (second level), general physicians, dentists (general), professional nurses (general), medical X-ray technicians. It is also included semiskilled workers who are garment cutters, wooden furniture finishers, office clerks, machinery fitter-assemblers, salespersons, and bank tellers. Low-skilled workers include laborers

Relative Employment and Wages: An International Comparison

The data is classified into 2 periods during 1991-1995, and 2002--2006 to present the fact in the last 2 decades (Table 1). The data during 1996--2001 is intentionally excluded throughout the study to avoid the period of the economic crisis of Thailand, which made the flotation of the currency in July 1997.

During 1991--1995, the employment trends in Germany, Thailand and the US all showed the increasing trends. While the relative wages of the US increased, those of China and Thailand also tended to increase as well. Nevertheless, the relative wages of Germany was decreasing due to the greater level of wage rigidities than other countries.

Remarkably, the wage gap between low-skilled and high-skilled workers in Thailand was quite high well nigh 2.07--2.88, while those in other countries were less than 2.00. Yet, the relative employment of Thailand was small with only less than 0.1, whereas the developed countries are mostly about 0.4- 0.6.

Please note that the Thai data had been tested whether there was a significant difference between the relative employment of high-skilled and low-skilled workers with and without registered immigrants. The result shows the insignificant difference. It is due to the small number of registered immigrants. Then, the immigrants were disregarded as the main reason for the structural change of relative employment and wage.

Interestingly, the relative wage between low-skilled and high-skilled workers in Thailand during 2002-2006 showed a declining trend. This trend was different from the prior years and from the other countries, whose trends have remained the same. The relative wages had constantly declined since 2000. At the same time, the employment gap of Thailand was greater from less than 0.1 to approximately 0.16--0.18.

Since the relative wage in the 2000s showed the inconsistent trend to the 1990s, the following part then sought for the explanation through literature reviews and theoretical background.

LITERATURE REVIEWS AND THEORETICAL BACKGROUND

This part aims to seek the reasons for the changing trend of relative wages of the Thai labor market. The explanation can be grouped as the 2 main reasons: demand for and supply of laborers.

Demand for laborers

The relative demand for high-skilled and low-skilled workers was considered in the realm of trade hypothesis or technological changes. In the study we classified into 2 sections: (1) changes due to trade (without any technological change) (2) changes due to Skilled Biased Technological Changes (SBTC) (with technological changes)

Supply for laborers

The factors effecting supply of the relative supply of high-skilled and low skilled workers in the globalization are various. However, in this study we included only the "shock factors" which is a sudden change and unpredictable through time. For the predictable factors, for instance birth rates or rates of health status, the labour market is assumed to automatically adjust its equilibrium. The important shocks in the last decade were the easier accessibility to education, and the worker movement between countries.

It should be noted that labour markets can be rigid. The rigidity of the labour market, so called market inflexibility, is claimed as an obstacle of the labor market operation by limit the necessary adjustments in the market (Evidence mostly based on the case of the labour market of the US and EU; for example Slaughter and Swagel, 1997). The cause of the rigidity is an institutional influence, which includes unions (collective bargaining) and minimum wages.

Therefore, the important factors are listed as the following points: (1) supply of high-educated workers relative to the lower ones (2) migration and (3) Institutional forces. The conceptual framework is depicted in Figure 3.

[FIGURE 3 OMITTED]

Demand for Labour

Trade Effects (Without Any Technological Change)

The theoretical background concerning the demand for labour due to trade is composed of 3 essential elements: the Heckscher- Ohlin Endowment Model (HO), the Stolper-Samuelson Theorem (SS) and the Skilled Biased Technological Change (SBTC).

The HO, one of the most influential theories in the international trade, argues that trade is based on different factor endowments across countries. The typical model based on this theory determines trade between two countries that use the same production technologies to produce two consumer goods. The model predicts that countries that are relatively rich in low-skilled workers will specialize in the production of goods that are unskilled-labour intensive. According to HO Model, it can be concluded that the trade liberalization should cause reallocation of labors.

The SS makes predictions about the correlation between prices and wages of certain types of workers when they are not used intensively. According to the SS, if the price of one product rises, the price of the factor used intensively in that product will also rise while the price of the other factors will fall.

Most papers applied the SS to explain the effect of the trade liberalization on wage gaps between high-skilled and low-skilled workers. Since it demonstrates how changes in output prices affects on the prices of the factors when positive production and zero economic profit is maintained in each industry. The rising wage gaps in the globalization are partially because of the change in the relative prices of goods. This change is influenced by changes in prices in the world market. If a country is open to international trade, the price change in the domestic market will be affected by the price change in the world market.

The factor content and the product price approach are the empirical tools to evaluate the trade effects. According to countries' endowments, the high-skilled worker abundant country will produce high-skilled products. The demand for low-skilled workers will decline, while the demand for high-skilled workers will increase. As a result, the wages for high-skilled workers will also increase automatically.

An elasticity of substitution between skilled and unskilled labors is applied to show an implicit change in relative skills that are supplied from trade. However, this approach tends to have a low impact of trade on the relative demand for low-skilled workers. To calculate a number of labors replaced by trade, the assumptions concerning the labour requirements to produce those imports are required. These assumptions have been criticized (Wood, 1994) that a lot of goods imported from developing countries are no longer produced in industrialized countries. Therefore, the factor requirements to be used should be those of the developing country and the relative demand for low-skilled labors turns out to be greater. In other words, in a developing country where low-skilled labors are abundant, a decrease in tariff of the product requiring low-skilled workers will decrease their wages.

Skilled Bias Technological Effect (With Technological Changes)

The other reason for the greater demand and hence higher wages for high-skilled workers is on the basis of a changing structure of production requirements so called skill bias technology. Since new technologies, knowledge and skill intensives require a compatible workforce. The introduction of new technologies in lower income countries implies reallocation of labors from low to high productivity activities which are generally both more capital and skill intensive.

The SBTC claims that the continuously technological advances are introduced into the labour markets, so high-skilled labors will be demanded for these advances. It will effect on the demand for low-skilled workers that will be substituted by higher ones. Most studies in the 1990s to the 2000s preferred to the SBTC. For example, Berman, Bound, and Griliches (1994) Berman, Bound and Machin (1998) Berman and Machin (2000) De Laine, Laplagne, and Stone (2000) and Sasaki, and Sakura (2005) claimed that higher demand for high-skilled workers was due to the SBTC.

The capital-skill complementarity with technological change is one of the essential tools to show the existing of the SBTC. The complementarity between technologies and skills was often extrapolated to the whole economy commonly referred to the SBTC (Johanson, 2004). From a theoretical point of view, however, micro-level complementarities between the skills and technology do not necessarily translate into macro-level relationships. The overall impact will depend on substitution effects of both factors and product markets (Colecchia and Papaconstantinou, 1996).

Berman, Bound, and Griliches (1994), and Berman, Bound and Machin (1998) examined a sample of developed and developing countries, specifically an industry share of production and non-production workers to argue that the demand for low-skilled workers had plunged due to the SBTC. Most high and middle income countries showed the SBTC in the 1980s. Their industries increased the proportion of high-skilled workers despite generally rising or stable relative wages. It was also found that the same manufacturing industries simultaneously increased demand for skills across countries.

In Australia, De Laine, Laplagne, and Stone (2000) investigated the reason for an increase in demand for workers, excluding elementary workers, since 1978. The findings were also consistent with those of other studies in other countries, which supported the SBTC. The interesting finding was that the equations using wage bill shares provided stronger evidence than those using employment shares. In addition, they revealed that imports did not influence the relative demand for high-skilled workers. On the contrary, exports were positively associated with the demand for high-skilled workers. This implied that increasing exports were leading to a widespread change in the relative demand for workers.

Most evidences had confirmed that the increase in the demand for high-skilled workers is attributable to the SBTC. However, the study of Berman, Somanathan, and Tan (2005) did not explicitly support the SBTC in the case of a low-income economy, namely India. The reason contributed to the matter of time. They used the panel data which was disaggregated into industry and state from the Annual Survey of Industry (ASI). The result confirmed that while the 1980s had a decrease of skills demand, the 1990s showed generally rising demand for skills with variation across states. The increasing output and the capital-skill complementarity were mentioned to be the best explanation of skill upgrading in the 1990s. As the economy underwent a sharp reform and a manufacturing boom in the 1990s, it raised the possibility that technology absorption accelerated. Skill upgrading did not occur in the same set of industries in India as it did in other countries. They suggested that an increase in the demand for skills in Indian manufacturing sector was not due to the international diffusion of the SBTC.

The later literatures attempted to integrate both trade and technological changes by various proxies such as tariff rates as the globalization and machinery imports as technological changes. Galiani and Sanguinetti (2003) applied a Computable General Equilibrium (CGE) to the UK data in the past globalization period (1880-1913). The results showed that a trade shock and a skill biased technology shock were compatible with the observed decrease in the proportion between skilled and unskilled labour wages. The possible reasons were other off-setting factors such as education, migration and capital accumulation. For that to be possible, other off-setting factors such as education, migration and capital accumulation must have occurred. This is different from current situations in developed and developing economies, where all these off-setting factors do not seem to be at work (Betran, Ferri, and Pons, 2007).

In Japan, Sasaki, and Sakura (2005) examined the demand shift towards university graduates in terms of the SBTC and globalization. Using the major groups of panel data of Japanese manufacturing in 1988-2003, they demonstrated that the increase in the relative demand for university graduates was closely related to the R&D expenditures ratio (treated as the SBTC) and the import ratio from the East Asian countries (treated as the foreign production ratio or a globalization index). They concluded that the demand shift toward highly educated workers in the Japanese manufacturing sector was due to both SBTC and globalization.

In this present, the interrelationship between trade and technological changes is still on the debate. If this interrelationship persists, these two factors will be impossible to disaggregate their effects separately. However, at the moment there is no solid evidence providing the correspondence between the trade and technological changes.

Supply of Labour

The dynamic labour markets can be well explained by a demand and supply framework, especially these days when every country attempts to relax inflow and outflow rules of goods and factors of production. In a closed economy, which keeps all things equal, the employment and wage rates are determined by the relative supply of high-skilled and low-skilled workers. An increase in the supply of skills will decrease the returns to them as wage rates are purely determined by the equilibrium of the domestic labour market.

Figure 4 explains the shifting up of the supply of high-skilled workers. If the relative workers of high-skilled to low-skilled workers increases (from Eh /El (1) to (2)) by an openness of the economy, the relative wages will decrease (from Ws /Wu(1) to (2)). Vice versa the outflow of the high-skilled workers, which declines the relative high-skilled to low-skilled workers, results in an increase in the relative wage.

Please note that the elasticity of the labour demand and supply curves is important to the scale of outcomes to the labour market. The flatter the demand curve, the larger the impact of shifts in the equilibrium of the employment and wages, especially the relative employment.

[FIGURE 4 OMITTED]

Three main groups of the influential factors in the last decade on the labour market are listed below.

Number of Educated Persons: the Potential Supply of High-skilled Workers

The educated persons represent the potential labour supply for high- skilled workers. The simple empirical evidence suggests that larger wage gaps between high-skilled and low-skilled workers in the US and the UK can be explained by a reduced supply of more-educated workers in the 1980s and the 1990s. This was compared to very stable conditions on the relative supply side in continental European countries (Freeman, 1994).

For the individual decision, the investment in education which is finally a human capital accumulation is influenced by many factors such as his personal belief, his physical and mental conditions. The studies about individually occupational and educational selections were not much widely explored. The results of these studies were mostly concluded as wages are not the only factor effecting on the decisions (For example, Hoffman and Low, 1983). However, the current studies in economics mainly recognize an amount of financial return as a major force of occupational and educational selection of individuals.

Migrations

In these days, domestic workers can be more easily replaced by foreign workers due to an increase in trade and globalization. As a result, the bargaining power of workers has been declining. The erosion of workers' bargaining power could also have an effect on a country's formation of skills, as it effects on workers' and companies' incentives to invest in training.

In the US, the effects of immigration are much stronger in low-skilled than the high-skilled occupations. For the 23 percent of natives employed in these occupations (about 25 million workers), a 1 percent increase in the immigrant composition of their occupation reduced wages by 0.8 percent. Since these occupations were 15 percent immigrants, this implicitly suggested that immigration may reduce average wages of the natives in a low-skilled occupation by perhaps 12 percent (Camarota, 1998).

Institutional Forces

Institutions play a significant role in wage setting and thus the labour market distortion. This accounts for the lower half of the wage distribution and to differences in the magnitude of educational wage differentials (Freeman and Katz, 1994). This section will be classified into 2 main forces: unions (privates' influences) and minimum wages (government's influences).

Unions play an important role in wage determination in all advanced countries both directly through collective bargaining and indirectly through government policies. They typically negotiate contracts that allows for less variation in pay than that of occurs in the nonunion sector. As the unions are much less prevalent in the US, an overall variance in wages in the US is supposed to be stronger than that in Europe.

The US has a business-oriented union movement largely based on relatively autonomous local unions which bargain for better conditions from an individual employer. In Europe, unions (Except the case of the UK, where is claimed that the UK has very decentralized wage-setting mechanisms) play a smaller role in the local firm and a larger one at the industry or national level with a broader coverage of wage setting for non-union members (Freeman, 1994). Thus, wage bargaining in Europe has a greater institutional influence.

As a result of negotiation between unions and employers, the amount of labour cost tends to increase as the higher labor's standard, benefits and trainings are required. Since, trainings will result in higher productivity of workers and thus the surplus that workers and employers will divide when they bargain. It will not increase only the surplus of the current worker-employer combination, but also the surplus generated when the trained worker works with other employers after leaving his current employer. This will lead to inefficiencies when it comes to the training decision. Assume a two period world, in which the decision to train is taken in the first period; the training will increase the worker's productivity in the second period. But in the second period the workers may not be in the paid-for-training firm in the first period. It is found that an average period a worker stays with one employer decreases as the specific training is invested. Another important feature is the apprenticeship system. Culpepper (1999) pointed out that the success of the apprenticeship system in some countries such as Germany, depended crucially on certain institutional features of the German political economy such as its industrial relation system. The German firms were organized in employers' organizations and co-operated in order to guarantee the amount of investment that would be optimal for all (Jansen, 2000).

The minimum wages, a directly government intervention on labour markets, are set to a minimum wage rate for the whole economy. It aims to reduce wage inequality by raising wages in the lower end of the wage distribution. (See Machin and Manning, 1992; Neumark and Wascher, 2006).

CHANGES IN RELATIVE WAGE OF HIGH AND LOW SKILLED WORKERS AND THE SUPPLY OF HIGH SKILLED WORKERS

One striking fact that has altered the environment of the Thai labour market was a sharp increase of graduates in the labour market. As the study of Thailand Development Research Institute Foundation (2006) estimated the demand for labors in 2007--2016, the figures showed that the estimated demand for bachelors during 2007--2011 is 161,140 graduates per year and during 2012 --2016 for 145,348 graduates per year.

Explicitly, the gap between the estimated demand and the actual supply of education has increased greatly. Considering only bachelor's degree, the bachelor graduates in 2006 exceeds the forecasted demand in 2007 of almost 100,000 persons. The great number of bachelors implied the accumulation of the excess supply. Inversely, the vocational graduates were found to be shortage. Not only the bachelor degree, a number of PhD. graduates in master degree and diploma was shooting at about 45--55 percent per year. (Table 2)

The push factor of a tremendous number of graduates during that time can possibly be explained by a great number of universities established. In 1990--1998, at least 8 public universities were established (excluding private universities). Moreover, in 1995 teacher colleges (41 institutes in 2001 data) were promoted to be institutes where be able to produce bachelor graduates. Additionally, in 2003 these institutes had been changed to universities. Therefore, the steep trend of share of new graduate in total employment had shooting up since the beginning of 2000s (Figure 5).

[FIGURE 5 OMITTED]

For an extensive picture, the relative supply, the relative wages and the relative wage bills of high-skilled to low-skilled workers are shown in the Table 3. During 1980--2006, the relative supply and wage bills demonstrated the increase in the number of high-skilled to low-skilled workers significantly, whereas the relative average wages tended to decrease. It implies that the supply of high-skilled workers overwhelm the lower one. The data also shows that the relative supply grows significantly during 2001--2006, nearly twice time from 1996-2000.

Some studies reaffirmed that a decrease in relative wages found in the US during the late 1960s and early 1970s was due to the oversupply of educated workers. The supply of educated persons in a number of student enrollments in college overwhelmed the increase in demand for more educated workers. (Freeman, 1994; Katz and Murphy, 1992). This phenomenon was also found in OECD countries in 1970s. However, in the US the sizable and accelerated shifts in demand for high-skilled workers in the 1980s and the 1990s were concurrent with the shrinking growth in their relative supply. The demand for high-skilled workers as well as their wages has increased significantly since then.

In this present, the condition of the rapid increase in supply of graduates can be widely seen in developing countries in this present. For instance, China has faced the excess supply of collage graduates. The Chinese public planner's aimed to decrease the expansion of graduates from 20 percent to 6-8 percent by adding admission conditions of the universities. Cambodia also has encountered a problem of mismatched education. Only one tenth of graduates were able to find a job. The graduates, produced without educational planning, have caused the labour mismatch. In addition, most graduates are lack of quality and choose their fields of education without labor market concerns (Chareonwongsak, 2006).

CONCLUDING REMARKS

A data set on adjusted high-skilled and low-skilled wages, based on Freeman and Oostendorp Occupational Wages Around the World (2000), the International Labor Organization's (ILO) in the Annual October Inquiry as well as the Thai Labour Force Survey are used to explore the relative wage and relative employment between high-skilled and low-skilled workers of Thailand comparing to that of various countries, namely, China, Germany, the US.

During 1991--2006, the employment trends of high-skilled workers in each country show the congruous increase. The wage trends in 1990--1995 are also consistent to the trend in 2001 2006. However, the data of Thailand during the 2000s showed that only the relative wages changed its trend from an increasing trend in the previous decade to a decreasing trend. The decrease in relative wages coincided with the increase in the employment of high-skilled workers seems to support the evidence of the excess supply of high-skilled workers in Thailand.

The relative supply shows the significant increases in high-skilled workers overwhelming the increase in the relative demand. The conclusion of the study claimed that the oversupply of graduates is one of the main results changing employment structure and wage trends in Thailand. It can be claimed that due to the twice increases in bachelor graduates during the 2000s, the supply of potential high- skilled labors has increased greatly. This phenomenon influences on the structural changes in the Thai labour market.

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Ruttiya Bhula-or, Chulalongkorn University

Paitoon Kripornsak, Chulalongkorn University
Table 1 Relative employment and wages between high-skilled
and low-skilled workers (1991-2006)

Country Relative 1991 1995 Trend

China Eh/El n/a n/a Unable to define
 Wh/Wh 0.99 1.3 Increase

United States Eh/El 0.42 0.46 Increase
 Wh/Wh 1.82 1.91 Increase

Thailand Eh/El 0.06 0.08 Increase
 Wh/Wh 2.07 2.88 Increase

Germany Eh/El 0.57 0.59 Increase
 Wh/Wh 1.73 1.86 Decrease

Country Relative 2002 2006 Trend

China Eh/El n/a n/a Unable to define
 Wh/Wh n/a n/a Unable to define

United States Eh/El 0.53 0.53 Increase
 Wh/Wh 2.06 2.08 Increase

Thailand Eh/El 0.16 0.18 Increase
 Wh/Wh 3.04 2.89 Decrease

Germany Eh/El 0.7 0.74 Increase
 Wh/Wh 1.77 n/a Decrease

Note: Eh/El represents the relative employment of high-skilled and
semi-skilled to low-skilled workers, while Wh/Wl shows the relative
wages of high-skilled to low-skilled workers. Employment data of
Germany in 1991 was substituted by 1993 data, and the relative wage in
2002 was substituted by 2001. Countries were selected upon data
available. However, as China has increased its importance in the world
economy. Though the data did not complete in the series of relative
employment, its relative wages showed the increasing trend during
1991-1995.

The classification of skill and low-skilled is based on occupations.
The employment is classified by International Standard Classification
of Occupations (ISCO-1988) where laborers (category 9) are low-skilled
workers.

Source: International Labor Organization's (ILO) the Annual October
Inquiry and the Freeman and Oostendorp (2000) Occupational Wages
around the World (OWW)

Table 2 Number of Graduates in Thailand (The 1993-2006)

 1990s 2000s

 1993 1995 2003 2006

Total 86,266 103,549 302,606 304,813
Bachelor's 77,289 90,227 255,786 256,518
Graduate Diploma n/a n/a 3,090 8,091
Master's 8,873 13,113 43,185 47,872
Ph.D. 104 209 545 1,670

The data in the 1990s is calculated by summing up the graduates from
private and public universities.

The graduate diplomas are included in the master graduates.

After 2000, the data is summed the total graduates up by the source.

The data excludes graduates from abroad.

Source: Commission on Higher Education, Ministry of Education of
Thailand.

Table 3 Changes in the relative wages, wage bills, relative supply
of high-skilled and low-skilled workers (1980-2006)

 Relative Wages Relative Wage Bills Relative Supply

1980-1985 5.103 0.882 0.173
1986-1990 4.905 0.987 0.201
1991-1995 4.432 1.089 0.247
1996-2000 3.650 1.183 0.323
2001-2006 2.614 1.539 0.589

Note High-skilled workers include legislators, senior officials and
managers, professionals, technicians and associate professionals,
clerks, service workers and shop and market sales workers. On the
other hand, the low-skilled workers account for the rest occupations.
The relative figures are averaged during the period of time.

Source: Thai Labor Force Survey, calculated by the author

Figure 2: Average growth of employment classified
by high-skilled and low-skilled workers 2002-2005.

High skilled workers 3.3
Low skilled workers 0.9

Note: High skilled workers are legislators, senior officials and
managers, professionals, technicians and associate professionals,
clerks, service workers, shop and market sales workers. The rest
occupations are regarded as low-skilled workers. The data is
derived from the third quarter of the year, the highest employment
among the other quarter, to avoid seasonal effects. Source Thai
Labor Force Survey.
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Author:Bhula-or, Ruttiya; Kripornsak, Paitoon
Publication:Journal of International Business Research
Geographic Code:9THAI
Date:Mar 1, 2008
Words:6089
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