The minimum wage change effect to the household saving between 2011 and 2013

Abstract

In 2013, Thailand's minimum wage legislation change from multiple minimum wage levels in each province to a single national minimum wage. This study paper presents analyses of the relationship between the minimum wage change and low-income household savings. By using ordinary least square regression analysis. Sample data by Household Socio-economic survey in 2013 from National Statistical Office. The household saving is average monthly total income per household minus average monthly total expenditures per household. For a household to be considered as a low-income household, the household head must be between the ages of 18 and 60, have completed less than or equal to the compulsory education, and have a per capita average monthly income that is less than or equal to the 40th percentile. The econometric result shows that minimum wage has a statistically significant positive relationship with low-income household saving.