Is 300 Baht minimum wage in Thailand a good policy tool to reduce poverty, measured by the impacts on employment and average wage?

Abstract: Minimum wage is a topic that has been of particular interest for policymakers and economists in Thailand since it has been one policy instrument aiming at reducing poverty. In , 2013, minimum wage was increased from 239 Baht to 300 Baht per day, an increase by 26 percent. The main objective of this essay is to assess the extent towhich the 300 Baht minimum wage is a good instrument to reduce poverty. Using a difference-in-difference we analyse the impact of minimum wage on employment and average wage. Minimum wage in Thailand does not cover workers inthe informal sector . the results of our estimation show that minimum wage provides minimal disemployment effects in the formal sector in the short run, but minimum wage have a positive effect on average wage.