The Wage Effect of the COVID‐19 Pandemic by Company Size: Evidence From Thailand

ABSTRACT Large enterprises tend to perform better than small and medium‐sized enterprises (SMEs) in normal times. However, this general principle may not hold true during periods of instability, such as large‐scale pandemics. While large companies may be able to implement a work‐from‐home system more flexibly, SMEs may require government support. Against this backdrop, we empirically investigate the effect of the COVID‐19 pandemic on the labour market, especially wages, in Thailand. By using the individual‐level quarterly data in Thailand from 2019 to 2022, we examine the differences in the wage impact of the COVID‐19 pandemic according to company size. Some estimations show a decrease in the wage gap between small firms (10–49 employees) and larger firms. At least, we do not find a robust result indicating further expansion of the wage gap by company size.