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Minimum wage levels across Southeast Asia: Trends and issues

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  • Hee-Ryang Ra

Abstract

This study examines the minimum wage system of major Southeast Asian countries and the trends and issues of minimum wages across Southeast Asian countries. In addition, a minimum wage determining model is set up with regard to macroeconomic variables, and the minimum wage determining mechanism is analyzed based on the estimation. By comparing the actual minimum wage growth and expected one in the years of 2012 and 2013, the difference is discussed in this regard. We examine the causes of minimum wage increase as well. The rapid increase in minimum wages in many Southeast Asian countries, indeed, is different from the existing change patterns. In particular, the difference between the actual minimum wage growth and expected one in Indonesia, Thailand and Vietnam is outstandingly higher than the previous averages. Such a rapid minimum wage increase indicates the greater effect of political and non-economic factors than that of conventional economic deciding variables.

Suggested Citation

  • Hee-Ryang Ra, 2014. "Minimum wage levels across Southeast Asia: Trends and issues," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 17(3), pages 313-339, September.
    • Handle: RePEc:sae:intare:v:17:y:2014:i:3:p:313-339
    DOI: 10.1177/2233865914546501
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    1. Card, David & Krueger, Alan B, 1994. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania," American Economic Review, American Economic Association, vol. 84(4), pages 772-793, September.
    2. Mari Pangestu, 2001. "The Social Impact of Globalisation in Southeast Asia," OECD Development Centre Working Papers 187, OECD Publishing.
    3. Manning,Chris, 1998. "Indonesian Labour in Transition," Cambridge Books, Cambridge University Press, number 9780521594127, January.
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