Effects of research and development on employment and skilled-unskilled wage gap in Thailand

Abstract

This study focuses on examining the impact of research and development (R&D) on employment and the wage gap between skilled and unskilled workers in the Thai economy. The analysis encompasses data from 12 different sectors spanning the years 2011 to 2017. The findings reveal that the effects of R&D expenditures on employment and the skilled-unskilled wage gap vary significantly across sectors, indicating that the technologies invested in can act as both substitutes and complements to workers depending on the specific sector. However, in the long run, the results indicate a negative influence of R&D expenditure on both employment levels and the skilled-unskilled wage gap. This suggests that certain technological investments have the potential to replace workers in general, with a more pronounced effect observed among skilled workers.