The Absorption of Immigrants and Its Effects on the Thai Wage Structure

Abstract

This paper investigates the impact of low-skilled immigration on the industry structure across the provinces of Thailand. In contrast to Thai workers with comparable education, we find no evidence of the Hecksher-Olin style absorption of foreign labour in any immigrant-intensive industry. This is primarily due to the temporary nature of the foreign workers. Furthermore, as in previous studies, we find the negative effects of immigration on low-skilled Thai wages to be small. The adverse impacts on existing foreign workers are much larger in comparison. Younger workers with less than a high school education suffer disproportionately more than their older counterparts. Finally, immigrant inflows are found to benefit high-skilled Thai workers with high school and college education.