Abstract
This paper estimates the effect of real minimum wage on wage, labor income, total compensation, overtime income, working hours and dis-employment using individual level panel data, created from the matched-outgoing rotation group (matched-ORG) of the Labor Force Survey of Thailand between 2002 to 2013. We found that a hike in real minimum wage was accompanied by an increase in real wage and real total compensation. During the gradual-decline period (2002–2011), the effect of real minimum wage on real labor income, real overtime income, working hours and dis-employment are not significant, negatively significant, negatively significant and positively significant, respectively. On the other hand, during the big-jump period (2012–2013), the effect of real minimum wage on real labor income, real overtime income, working hours and dis-employment are positive significant, not significant, positively significant and negatively significant, respectively.