Wage rate and employment in the manufacturing sector of Malaysia

This paper examines the importance of Malaysian manufacturing industries to the domestic economy and then estimates the demand for labor as a function of wage rate, output, and capital. The study uses the survey data of firms categorized according to the 3-digit Malaysian Standard Industrial Classif...

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Main Author:	Yusoff, Mohammed
Format:	Conference or Workshop Item
Language:	English English
Published:	2013
Subjects:	HD Industries. Land use. Labor
Online Access:	http://irep.iium.edu.my/30533/ http://irep.iium.edu.my/30533/2/China_2013_FINAL_Program%5B1%5D.pdf http://irep.iium.edu.my/30533/5/Wage_rate_and_employment_in_manufacturing_industry_of_Malaysia__BEIJING_CONFERENCE_2013__REVISED%255B1%255D_%282%29.pdf

id	iium-30533
recordtype	eprints
spelling	iium-305332013-07-19T01:17:28Z http://irep.iium.edu.my/30533/ Wage rate and employment in the manufacturing sector of Malaysia Yusoff, Mohammed HD Industries. Land use. Labor This paper examines the importance of Malaysian manufacturing industries to the domestic economy and then estimates the demand for labor as a function of wage rate, output, and capital. The study uses the survey data of firms categorized according to the 3-digit Malaysian Standard Industrial Classification. The manufacturing sector has been contributing significantly to the Malaysia’s economy in terms of its contribution to GDP, employment, and exports. The OLS results suggest that wage rate, output or production, and capital are all important determinants of labor employment in the manufacturing sector in Malaysia. Although their elasticities with respect to employment of labor are all inelastic, the demand for labor is relative more responsive to the changes in the output and capital than the wage rate. Therefore implementing policies to encourage capital accumulation and overall economic growth are indeed helpful to boost employment in the manufacturing sector. Malaysia’s manufacturing output are mostly exported to foreign countries. This study indicates that the wage rate is an important determinant of labor demand in the manufacturing sector. Malaysia therefore has to manage it wage structure carefully such that the increase in wage rate must be in line with the increase in labor productivity. Otherwise Malaysian exports of manufactures will not be competitive in the world market and this will adversely affect the performance of Malaysian economy since Malaysia has been an export-oriented country in which exports have been the engine of growth. 2013 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/30533/2/China_2013_FINAL_Program%5B1%5D.pdf application/pdf en http://irep.iium.edu.my/30533/5/Wage_rate_and_employment_in_manufacturing_industry_of_Malaysia__BEIJING_CONFERENCE_2013__REVISED%255B1%255D_%282%29.pdf Yusoff, Mohammed (2013) Wage rate and employment in the manufacturing sector of Malaysia. In: 7th Global Business & Social Science Research Conference, 13-14 June 2013, Beijing, China. (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HD Industries. Land use. Labor
spellingShingle	HD Industries. Land use. Labor Yusoff, Mohammed Wage rate and employment in the manufacturing sector of Malaysia
description	This paper examines the importance of Malaysian manufacturing industries to the domestic economy and then estimates the demand for labor as a function of wage rate, output, and capital. The study uses the survey data of firms categorized according to the 3-digit Malaysian Standard Industrial Classification. The manufacturing sector has been contributing significantly to the Malaysia’s economy in terms of its contribution to GDP, employment, and exports. The OLS results suggest that wage rate, output or production, and capital are all important determinants of labor employment in the manufacturing sector in Malaysia. Although their elasticities with respect to employment of labor are all inelastic, the demand for labor is relative more responsive to the changes in the output and capital than the wage rate. Therefore implementing policies to encourage capital accumulation and overall economic growth are indeed helpful to boost employment in the manufacturing sector. Malaysia’s manufacturing output are mostly exported to foreign countries. This study indicates that the wage rate is an important determinant of labor demand in the manufacturing sector. Malaysia therefore has to manage it wage structure carefully such that the increase in wage rate must be in line with the increase in labor productivity. Otherwise Malaysian exports of manufactures will not be competitive in the world market and this will adversely affect the performance of Malaysian economy since Malaysia has been an export-oriented country in which exports have been the engine of growth.
format	Conference or Workshop Item
author	Yusoff, Mohammed
author_facet	Yusoff, Mohammed
author_sort	Yusoff, Mohammed
title	Wage rate and employment in the manufacturing sector of Malaysia
title_short	Wage rate and employment in the manufacturing sector of Malaysia
title_full	Wage rate and employment in the manufacturing sector of Malaysia
title_fullStr	Wage rate and employment in the manufacturing sector of Malaysia
title_full_unstemmed	Wage rate and employment in the manufacturing sector of Malaysia
title_sort	wage rate and employment in the manufacturing sector of malaysia
publishDate	2013
url	http://irep.iium.edu.my/30533/ http://irep.iium.edu.my/30533/2/China_2013_FINAL_Program%5B1%5D.pdf http://irep.iium.edu.my/30533/5/Wage_rate_and_employment_in_manufacturing_industry_of_Malaysia__BEIJING_CONFERENCE_2013__REVISED%255B1%255D_%282%29.pdf
first_indexed	2023-09-18T20:44:42Z
last_indexed	2023-09-18T20:44:42Z
_version_	1777409597456252928

Wage rate and employment in the manufacturing sector of Malaysia

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