For employees, the government, and labor unions, the hope is that in a time of economic growth (5% predicted for 2013) and low unemployment (0.6% at the end of 2012), increased income for workers will boost consumption and force productivity gains and innovation. This will then drive a more balanced, modernized, and competitive economy and help Thailand avoid the much-dreaded middle-income trap. Indeed, one of the commonly stated goals of the new minimum wage is that it will push Thai workers to raise their own skill levels in preparation for increased labor competition with the opening of the ASEAN Economic Community (AEC) in 2015. Advocates of the policy also anticipate that the modernization of Thai businesses and increases in productivity will lead to a reduction in the level of geographical disparity in Thailand, with fewer workers forced to move to Bangkok for higher wages.
There are fears on the part of some employers that inc