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Call for Papers: PIER Research Workshop 2025
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Discussion Paperdp
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Year
2025
2024
2023
2022
...
12 October 2022
20221665532800000
No. 189

Brain over Brawn: Job Polarization, Structural Change, and Skill Prices

Abstract

This study investigates the effects of brain and brawn skills on wages and the changes in wage distribution in Thailand using the Labor Force Survey (LFS) from 1985 to 2020. We quantify the contribution of changes in the skill requirement and highlight the increase in the return on brain and the decrease in the penalty on brawn, which helps explain the wage distribution changes across periods. We further explore the polarization in the labor market and analyze the changes in the wage distribution by applying the decomposition method proposed by Firpo et al. (2009). Our results suggest that wage dispersion increases in the top end over the first two time periods but decreases in the third time period, while it continues to decrease in the lower end of the distribution.

Published Version

Paweenawat, S. W., & Liao, L. (2024). Brain over brawn: Job polarisation, structural change, and skill prices. The Economic and Labour Relations Review, 35(1), 163–194.

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JEL: J20J23J24J31
Tags: polarizationstructural changerif-regressionsdecompositionwage inequalityjob tasks
The views expressed in this workshop do not necessarily reflect the views of the Puey Ungphakorn Institute for Economic Research or the Bank of Thailand.
Sasiwimon Warunsiri Paweenawat
Sasiwimon Warunsiri Paweenawat
Thammasat University
Lusi Liao
Lusi Liao
Baoshan University

Puey Ungphakorn Institute for Economic Research

273 Samsen Rd, Phra Nakhon, Bangkok 10200

Phone: 0-2283-6066

Email: pier@bot.or.th

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