The minimum wage change effect to the household saving in Thailand in 2013

บทคัดย่อ

          This study investigates the correlation between an increase in the minimum wage and savings within low-income households. Utilizing data from the 2013 Household Socio-economic Survey (SES) conducted by the National Statistical Office (NSO), the research focuses primarily on the household head. Through econometric analysis, a positive and statistically significant relationship is identified between the difference in minimum wage between 2011 and 2013 and the average monthly per capita income within the region, and household savings. Additionally, the study reveals that changes in minimum wage during the years 2011 and 2013 influenced the 2013 minimum wage change. Notably, positive outcomes are observed for household characteristics such as marital status and location, with married household heads residing in municipal areas exhibiting a favorable impact on savings. Unexpectedly, findings also indicate that households with children are more inclined to save money compared to those without children, and contrary to assumptions, a higher education level of the household head results in a smaller percentage of savings. Given the positive correlation between minimum wage and low-income household savings, policy interventions aimed at assisting low-income households in saving money could be explored by the government.