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Career Crisis? The Impacts of Financial Shock on Entry-Level Labour Market: Experimental Evidences from Thailand in 1997

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  • Tomohiro Machikita

Abstract

Identifying the conditions of entry-level labour market on employment and wages is difficult because there is non-separability of match qualities from firm specific demand shock at the period of transition from school to work. We utilize Thailand's financial crisis in 1997 as a natural experiment which exogenously shifts labour demand temporally. This model provides three testable hypotheses: (1) entry-level labour market tightens after crisis; (2) disadvantage of newly entrants at the period after crisis decreases overtime; (3) senior or highly educated worker's job and wages are secured. Convincing evidences from Thailand Labor Force Survey support our empirical predictions.

Suggested Citation

  • Tomohiro Machikita, 2005. "Career Crisis? The Impacts of Financial Shock on Entry-Level Labour Market: Experimental Evidences from Thailand in 1997," Hi-Stat Discussion Paper Series d04-79, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hst:hstdps:d04-79
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    References listed on IDEAS

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    More about this item

    Keywords

    Crisis; Entry-Level Labour market; Treatment Effects;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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