The Impact of Population Aging on Regional Income Inequality in Thailand

Abstract

This article aimed to study the impact of demographic transition toward an aging society on inequality in Thailand. This research was a quantitative study using the analysis of secondary data sources. The data collection instrument consists of annual regional panel data from 2021-2023 obtained from national statistical sources. The data were analyzed using the panel Cointegration Test using Kao Residual test and long-run model estimation using the Fully Modified Ordinary Least Squares (FMOLS) Method. The research studied to analyze the long-term relationships and control for spatial differences across regions. The result of the study found that: 1) The young dependency ratio (Ydep) and the proportion of the elderly (AGES) have a positive relationship with inequality, indicating long-term economic burdens on households in aging contexts. 2) The old-age dependency ratio (Odep) shows a negative correlation with inequality in certain contexts, while Gross Regional Product (GRP) significantly reduces inequality. 3) The poverty ratio (Poor) and household debt (Debt) are significant factors that exacerbate inequality. Furthermore, the variations in baseline levels of inequality across regions are observed on policies that prioritize adapting policies to specific regions rather than adopting a one-size-fits-all approach nationwide.