Income Inequality in Thailand: A Relative Poverty Approach
Issued Date
2022-09-01
Resource Type
ISSN
01198386
Scopus ID
2-s2.0-85139515012
Journal Title
Asia-Pacific Social Science Review
Volume
22
Issue
3
Start Page
69
End Page
79
Rights Holder(s)
SCOPUS
Bibliographic Citation
Asia-Pacific Social Science Review Vol.22 No.3 (2022) , 69-79
Suggested Citation
Meemon N. Income Inequality in Thailand: A Relative Poverty Approach. Asia-Pacific Social Science Review Vol.22 No.3 (2022) , 69-79. 79. Retrieved from: https://repository.li.mahidol.ac.th/handle/20.500.14594/83434
Title
Income Inequality in Thailand: A Relative Poverty Approach
Author(s)
Author's Affiliation
Other Contributor(s)
Abstract
This study explored income inequality in Thailand using the OECD’s relative poverty indicator. Based on 2013 and 2017 data from Thailand and the OECD, we compared trends in poverty between countries. Then, by selecting the working-age population in Thailand, we examined several socioeconomic determinants of poverty. The results indicate that the relative poverty rate in Thailand was relatively high compared to the OECD countries and was considerably higher for children and older adults. Among the working-age population, unemployed individuals and informal-sector employees had a persistently higher risk of relative poverty. These results imply that income inequality in Thailand depends largely on the country’s employment situation. People who are not employed or engaged in any economic activity have a high chance of being impoverished, which can increase income inequality. From another viewpoint, the situation could indicate that the current welfare and social protection systems for people not directly related to employment in Thailand are inadequate compared to the systems in OECD countries. Based on the results, we recommend that the government should strengthen current welfare policies for these people. The child allowance for low-income workers and the employment benefit for retirement or termination, which are limited to formal-sector employees and their families, should be extended to workers in the informal employment sector. For older adults, the Old-Age Allowance should raise the currently inadequate pension amount to a realistic level that reflects the cost of living. In the long term, these fragmented policies should be integrated into a national pension policy that considers the country’s economic situation and social consensus.