Wage premiums for master's degrees in Thai private firms

Abstract

This study aims to examine the wage premiums experienced by individuals with a master's degree employed in private firms in Thailand in comparison to those with a bachelor's degree. This study utilizes labor force survey microdata from the National Statistical Office of Thailand covering 2008 to 2018. The augmented Mincer wage regression method is used in the analysis. The study's findings indicate that individuals with a master's degree in private firms experienced an average earnings advantage of 55% compared to those with a bachelor's degree between 2008 and 2018. Within the scope of master's degrees, the wage differences between men and women were not statistically significant. However, it is important to note that the choice of specialization in master's degrees notably influenced the wage premium. The research findings indicate that within Thailand's private firms, individuals with master's degrees in humanities and arts, science, social sciences, business, and law exhibit notably higher income levels than those with bachelor's degrees. Furthermore, when conducting a comparative analysis between these two educational degrees, it is observed that individuals majoring in education do not experience a higher wage return than any of the majors above.