Over education in Thailand labor market’s manufacturing sector

Abstract

           This research is study on over education in Thailand labor market’s manufacturing sector using Labor Force Survey (LFS) data in 2012, 2017 and 2019. The study found that manufacturing industries currently have major number of unskilled workers. Most over education are blue collar workers. In contrary respectively where most under education are white collar workers.

          In addition, the study found that over education have positive effects on high production technology establishments while simple manufacturing establishments rarely benefit which most of establishments are in this segment. At the same time, the disadvantage of over education is that they tend to resign more than any workers but with the current economic situation, the resignation rate is within the acceptable rate to the establishments. Therefore, they have no adaption guideline for the incident. 

          The important factors for establishments are education level and work experience which affect positively on labor compensation. However, those factors affect differently in each occupation category. Additionally, when the workers age increase, they tend to adjust to the right job position over time.