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The determinants of income inequality in Thailand: A synthetic cohort analysis

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  • Paweenawat, Sasiwimon Warunsiri
  • McNown, Robert

Abstract

This paper presents tests and estimates of the human capital model of income inequality using synthetic cohort data for Thailand: 1992–2011. The model focuses on four primary determinants of income inequality: mean per capita income levels, the variances in years of education, in the number of children, and in the number of earners in the household. All of these factors are important sources of income inequality in Thailand, with relative impacts that differ across demographic groups and types of household structure. An inverted-U relation between mean per capita income levels and inequality is found, reflecting gender differences of the head of household, differences in household composition, and variation in access to finance. Although the human capital model emphasizes education, estimates presented here show other household characteristics, such as number of children and number of earners, can be even more important sources of inequality.

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  • Paweenawat, Sasiwimon Warunsiri & McNown, Robert, 2014. "The determinants of income inequality in Thailand: A synthetic cohort analysis," Journal of Asian Economics, Elsevier, vol. 31, pages 10-21.
    • Handle: RePEc:eee:asieco:v:31-32:y:2014:i::p:10-21
    DOI: 10.1016/j.asieco.2014.02.001
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    Cited by:

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    2. Rogelio Mercado & Victor Pontines, 2024. "Which financial inclusion indicators and dimensions matter for income inequality? A Bayesian model averaging approach," Empirical Economics, Springer, vol. 67(2), pages 609-654, August.
    3. Nada Wasi & Sasiwimon Warunsiri Paweenawat & Chinnawat Devahastin Na Ayudhya & Pucktada Treeratpituk & Chommanart Nittayo, 2019. "Labor Income Inequality in Thailand: the Roles of Education, Occupation and Employment History," PIER Discussion Papers 117, Puey Ungphakorn Institute for Economic Research.
    4. Le, Thai-Ha & Nguyen, Canh Phuc & Su, Thanh Dinh & Tran-Nam, Binh, 2020. "The Kuznets curve for export diversification and income inequality: Evidence from a global sample," Economic Analysis and Policy, Elsevier, vol. 65(C), pages 21-39.
    5. Gemechis Teshome & Leta Sera & Amsalu Dachito, 2021. "Determinants of income inequality among urban households in Ethiopia: a case of Nekemte Town," SN Business & Economics, Springer, vol. 1(11), pages 1-21, November.
    6. Usman Qamar Sheikh & Muhammad Zafar Iqbal & Hafiz Khalil Ahmad, 2016. "The Impact of Foreign Aid, Energy Production and Human Capital on Income Inequality: A Case Study of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 5(1), pages 1-9, March.
    7. Abolfazl Shahabadi & Morteza Nemati & Seyed Ehsan Hosseinidoust, 2017. "The Effect of Knowledge Economy Factors on Income Inequality in the Selected Islamic Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(4), pages 1174-1188, December.
    8. Sasiwimon Warunsiri PAWEENAWAT & Lusi LIAO, 2023. "Educational assortative mating and income inequality in Thailand," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 89(2), pages 283-298, June.
    9. Durongkaveroj, Wannaphong, 2022. "Recent Developments in Basic Education in Thailand: Issues and Challenges," ADBI Working Papers 1322, Asian Development Bank Institute.
    10. Sasiwimon Warunsiri Paweenawat & Robert McNown, 2018. "A synthetic cohort analysis of female labour supply: the case of Thailand," Applied Economics, Taylor & Francis Journals, vol. 50(5), pages 527-544, January.
    11. Azfar Hilmi Baharudin & Yap Su Fei, 2017. "A Contemporary Re-Examination Of Malaysia’S Economic Growth: The Issues Of Equity, Efficiency And Liberalization," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(02), pages 509-530, June.
    12. Serge Atherwood & Corey S Sparks, 2019. "Early-career trajectories of young workers in the U.S. in the context of the 2008–09 recession: The effect of labor market entry timing," PLOS ONE, Public Library of Science, vol. 14(3), pages 1-30, March.
    13. Ruijia Wu & Rafael Alvarado & Priscila Méndez & Brayan Tillaguango, 2024. "Impact of Informational and Cultural Globalization, R&D, and Urbanization on Inequality," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 1666-1702, March.
    14. Tusawar Iftikhar Ahmad & Abdul Rehman & Abid Mehmood & Nosheena Sattar, 2022. "Nexus among Democracy, Human Resource Development, and Income Inequality: Three Stage Least Square Estimation for 47 Developing Economies," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 4(4), pages 607-620, December.
    15. Sasiwimon Warunsiri Paweenawat & Lusi Liao, 2022. "Brain over Brawn: Job Polarization, Structural Change, and Skill Prices," PIER Discussion Papers 189, Puey Ungphakorn Institute for Economic Research.
    16. Topcu, Mert & Tugcu, Can Tansel, 2020. "The impact of renewable energy consumption on income inequality: Evidence from developed countries," Renewable Energy, Elsevier, vol. 151(C), pages 1134-1140.

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    More about this item

    Keywords

    Human capital; Inequality; Synthetic cohort; Thailand;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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