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Income distribution in Thailand is scale-invariant.

Thitithep Sitthiyot1

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Area of Science:

  • Economics
  • Statistical Analysis

Background:

  • Income distribution patterns in Thailand have remained consistent for over 30 years.
  • Understanding the underlying properties of income distribution is crucial for effective policy interventions.

Purpose of the Study:

  • To investigate the scale invariance or self-similarity property of Thailand's income distribution.
  • To determine if Thailand's income distribution exhibits consistent patterns across different years.

Main Methods:

  • Utilized data on income shares by quintile and decile from 1988 to 2021.
  • Conducted 306 pairwise Kolmogorov-Smirnov tests to assess statistical significance.

Main Results:

  • Empirical evidence indicates that Thailand's income distribution is statistically scale-invariant.
  • Results show self-similarity across years, with p-values consistently high (0.988-1.000).

Conclusions:

  • The persistent nature of Thailand's income distribution suggests it functions as a scale-invariant system.
  • Significant changes to income distribution require a "phase transition" approach, rather than gradual adjustments.