Job Polarisation and Its Generation Effect on Labour Market of Thailand
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This research examines the impact of job polarisation and its generation effects on Thailand's labour market, using repeated cross-sectional quarterly data from the Labour Force Survey (LFS) over 2007-2023. The analysis investigates labour market dynamics through changes in employment structures by gender, education attainment, and generational cohorts. Following a task-based approach, occupations are classified based on International Standard Classification of Occupation (ISCO) into task categories, and a wage equation model is estimated using multiple linear regression (ordinary least squares: OLS) to test hypotheses on the effects of generation on wages. The findings reveal a distinctive pattern of job polarisation in Thailand, differing from that commonly documented in developed economies, characterised by a rising share of manual tasks and a declining share of abstract tasks among certain worker groups. These patterns suggest underlying structural features of Thailand’s labour market and motivate for further research on labour allocation mechanisms and adjustment to technological change in the Thai context. Additionally, the analysis of generational impacts, using a wage equation model, indicates significant differences in employment patterns and wage outcomes between younger and older generations, particularly for highly educated workers engaged in lower-skilled occupations. While younger generations (Gen Y/Z) show higher average wages, they are increasingly entering manual tasks, even when highly educated. The results also show a significant decline in the education premium for the newest generations (especially Gen Z) compared to previous ones. This research reveals the growing of skill mismatch and highlights the necessity of labour policies focusing on skill development and creating high-value job opportunities to address these structural labour market changes.
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