The Effects of FDI on Skilled-Unskilled Wage Gap in Thailand
The present study explores the effects of FDI on skilled-unskilled wage gap in Thailand using the panel data from
2008 to 2017, based on prosperous status of FDI and wage disparity problems of skilled and unskilled labor in Thailand.
Panel cointegration and panel granger causality technique are applied in this study. The results show that there is a positive
impact of industrial sector FDI on reduction skilled-unskilled wage gap. But in service sector the FDI leads to large wage
gap between skilled and unskilled labor. Panel Granger causality results suggest that there exist long-run two-way causal
linkage between FDI and skilled-unskilled wage gap in Thailand.
Keywords - FDI, Wage Gap, Skilled And Unskilled Labor, Panel Cointegration, Panel Granger, Thailand.