Income inequality in Thailand in the 1980s

Abstract

The report of the Socio-Economic Survey (SES), which includes the only data that can be used to measure income inequality, is now available for the year 1981, 1986 and 1988, and these data will be employed here to discuss some of the discrepancies in the the study of income distribution. First, income distribution is shown to have become more unequal if measured by household income. Thus there is a discrepancy between the distribution of household income and that of per capita household income. This paper also discusses why such a discrepancy occurs from the viewpoint of occupational group; and examines the so called "middle income class', which emerged after the rapid economic growth in the latter half of the 1980s and was reported to have taken an active part in the recent democratic movement. Section III explores income gap between regions. It points out that the discrepancy between household income and per capita gross regional product (GRP) has become increasingly problematic. This is another discrepancy in the study of income distribution in Thailand. Section IV takes up the impact of migration between Bangkok and other regions and between rural and urban areas. By taking migration into consideration, we can explain some aspect of income distribution and poverty more consistently. The last section discusses whether income inequality in Thailand really decreased and whether Thailand has already passed the turning point of the Kuznets' inverted-U-shape hypothesis. -from Author