Career Crisis? Impacts Of Financial Shock On The Entry-Level Labor Market: Evidence From Thailand

The authors utilize Thailand's the financial crisis in 1997 as a natural experiment which exogenously shifts labor demand. Convincing evidence from the Thailand Labor Force Survey support the hypothesis that both employment opportunities and wages shrunk for new entrants after the crisis. They find that workers who entered before the crisis experienced job losses and wage losses. But these losses were smaller than those of new entrants after the crisis. They also find that new entrants after the crisis experienced a 10% reduction in the overtime wages compared to new entrants before the crisis.