BANGKOK, Sept. 17, 2007 – Contrary to the belief of many Thais, the influx of illegal immigrants in Thailand has not had a significant impact on employment of Thailand’s low-skilled workers over the last decade, a new World Bank study finds. The study, Does Immigration to Thailand Reduce the Wages of Thai Workers?, shows that the effect of immigration on local wages has been minimal, said John Bryant, a researcher of the Institute for Population and Social Research at Bangkok’s Mahidol University and co-author of the report. 
Recent rapid economic growth in Thailand has led to the influx of hundreds of thousand of migrant workers from neighboring countries |
The study finds that even a 10 percent increase in immigration would have led to a roughly two percent reduction on Thai wages, a small effect when compared to the average of 10 percent annual growth in Thailand’s wages in the 1990s. “This means ifanother 100,000 of migrant workers came tomorrow, it would lower wages by about eight baht per month ,” he added. Mr. Bryant explained that the study found that the annual growth in the wages of Thai workers over the last ten years would have been just 0.1 to 0.2 percent higher without immigration. During the early 1990s, Thailand’s rapid economic growth has made it a desirable destination for hundreds of thousands of migrants looking for better paid jobs than in their own countries. They came mostly from Myanmar, but also from Cambodia, Lao PDR, Vietnam and Yunnan Province, China. Those from Myanmar have also fled the long-running conflict to the more stable environment of Thailand. Migrants now account for roughly four percent of the Thai population of ages 15-59. Many migrant workers in Thailand are illegal. A recent poll showed that the majority of Thai people believe that Thai workers have been hurt by the increase of illegal immigrants in Thailand. However, Does Immigration to Thailand Reduce the Wages of Thai Workers? finds that migration has not caused Thai people to lose jobs or work less. The finding was based on four rounds of Thai labor force surveys by the government in 2004, Mr. Bryant said. “In term of policy, efforts to keep out migrant workers could have a negative impact on Thailand’s economy,” Mr. Bryant commented. “This is because migrants are a source of cheap labor for labor-intensive industries.” 
A lot of migrant workers find employment in labor-intensive, low-skilled industries |
Does Immigration to Thailand Reduce the Wages of Thai Workers? is the second in a series of World Bank studies under its Greater Mekong Sub-region (GMS) Labor Migration Program. This program, launched in 2005, is part of the World Bank’s overall assistance strategy for the sub-region. By establishing this program, the World Bank seeks to fill some of the knowledge gaps relating to labor migration in this extremely dynamic sub-region, where annual growth rates have been averaging above six percent per year recently, said Ana Revenga, a Lead Economist at the World Bank who works on labor migration issues. “More than two million migrants have been moving between GMS countries in the last few years, but surprisingly there is a limited knowledge about migration in the sub-region,” Ms. Revenga noted. “Without the knowledge, GMS countries cannot make an informed decision on what labor migration policy will best suit their countries and support their economic development.” By focusing on the socio-economic impact of migration in both the sending and receiving countries, the Bank can help GMS governments refine and implement a regional system that will facilitate rather than restrict migration, said Ian Porter, the World Bank Country Director for Thailand, Lao PDR, Cambodia and Myanmar, four of the six GMS countries. “If managed well, migration could have a positive impact on economic growth in both the countries of origin and destination, which will help the governments to reduce poverty and improve the living standard of their peoples,” Mr. Porter said. “The Bank would like to provide technical expertise to help the GMS governments find ways to do just that.” Labor Migration in the Greater Mekong Sub-region was the first in the series of World Bank studies on the subject. Published in December 2006, this report concluded that uneven development in the sub-region, slowing population growth in Thailand (compared with high birth rates in neighboring countries), and growing economic integration will guarantee that labor migration in the GMS will continue to increase in the coming decade. Greater efforts are needed then to manage migration flows and ensure that the rights of workers will be protected and keep them from becoming victims of human trafficking, the report recommended.
 | Does Immigration to Thailand Reduce the Wages of Thai Workers? is the second in a series of World Bank studies under its Greater Mekong Sub-region (GMS)
To read the report, please click here |
For more information on the World Bank’s GMS Labor Migration Program, please contact Ana Revenga by email: arevenga@worldbank.org For more information about the World Bank’s GMS cooperation program, please contact Pichaya Fitts at (+66-2) 686-8324, or email: pfitts@worldbank.org |
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