Minimum Wage Levels Across Southeast Asia: Trends and Issues

TitleMinimum Wage Levels Across Southeast Asia: Trends and Issues
Publication TypeJournal Article
Year of Publication2014
AuthorsRa, Hee-Ryang
JournalInternational Area Studies Review
Volume17
Issue3
Pagination313 - 339
Keywordseconomics, economy, minimum wage, Southeast Asia
Abstract

This study examines the minimum wage system of major Southeast Asian countries and the trends and issues of minimum wages across Southeast Asian countries. In addition, a minimum wage determining model is set up with regard to macroeconomic variables, and the minimum wage determining mechanism is analyzed based on the estimation. By comparing the actual minimum wage growth and expected one in the years of 2012 and 2013, the difference is discussed in this regard. We examine the causes of minimum wage increase as well. The rapid increase in minimum wages in many Southeast Asian countries, indeed, is different from the existing change patterns. In particular, the difference between the actual minimum wage growth and expected one in Indonesia, Thailand and Vietnam is outstandingly higher than the previous averages. Such a rapid minimum wage increase indicates the greater effect of political and non-economic factors than that of conventional economic deciding variables.