Since Thailand, as an emerging country, has been in a period of highly
rapid growth mostly in the urban area, there has been a dramatic difference
between rural and urban area labor markets, resulting in a lack in uniformity
of wage distribution across regions of the country. Therefore, as a result, wage
structure was also not uniform across the country. This study provides the
empirical evidences, based on the cross-section OLS regression of Mincerian
wage equation that supports the significant correlations between education
and experience on wage. The empirical results of this paper clearly indicate
differing structures of wage determination in the rural labor market and urban
labor market in Thailand; urban labor market wage is generally more responsive
to an additional year of education and experience. Despite the greater responsiveness
to education and experience for urban labor markets, the diminishing
return to experience for urban labor markets is lesser than that of rural labor
markets. The empirical results also demonstrate that an additional year of
education has stronger correlations with percentage change in wage than an
additional year of experience