More wages, more income, more leisure? Evidence from Thailand’s time use survey

Does more income mean more leisure? This paper investigates the impact of wages and income on leisure time using merged data from two nationally representative samples in Thailand: (1) the Time Use Survey, and (2) the Labor Force Survey. Results will depend on our definition of income or wages. The data indicate that Thai people tend to reduce their leisure time in response to monthly income changes. The reason for such a negative relationship is that monthly income is composed of extra income other than wages, for example, overtime and bonus pay, which are found to be inversely related to leisure time. However, when the relationship between leisure time and hourly wage is estimated, we find that an increase in hourly wage substantially and significantly induces people to engage in more leisure and that a percentage change in hourly wage also provides a positive percentage change in leisure time.