The Changing Educational Distribution and its Impact on the Evolution of Wages in Thailand, 1987-2006

THIS PAPER USES DATA FROM THAILAND’S LABOR FORCE SURVEYS (LFS) FROM 1987 TO 2006 TO ANALYSE THE IMPACT OF THE CHANGING EDUCATIONAL COMPOSITION, AS WELL AS THE CHANGING RETURNS TO DIFFERENT EDUCATION LEVELS ON MALE WAGE DISTRIBUTION. THE FIRPOTH, FORTUIN, AND MEIUX DIVERGENCE COMPOSITION METHOD IS EMPLOYED IN THE STUDY TO UNDERSTAND THE COMPONENTS OF DYNAMIC WAGE STRUCTURE AND COMPOSITION EFFECTS. CONTRAREPSY TO WIDELY HELD BELIEFS, THE STUDY FINDS THE INCREASE IN EDUCATION TO BE A MAJOR FACTOR ENHANCING WAGES IN EDUCABILITY IN THE HIGHER PORTION OF THE WAGE DISTRIBUTION. THE STUDY ALSO REVEALS DETERIORATING RETURNS TO SECONDARY EDUCATION, AND THE RECENT SURGE IN RETURNS TO HIGHER EDUCATION TO EXCERPT THE GREATEST INCREASE ON THE OBSERVED EVOLUTION OF WAGES.