Returns to education and wage differentials in Malaysia

The main objective of this study is to estimate the effects of education on earnings of Malaysians. To achieve the objective, a Mincerian earning function has been estimated using Malaysia’s Household Income Survey 2009. Apart from considering levels of qualification, factors such as age, marital st...

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Main Authors:	Mohd Arshad, Mohd Nahar, Mat Ghani, Gairuzazmi
Format:	Article
Language:	English
Published:	Tennessee State University 2015
Subjects:	H Social Sciences (General)
Online Access:	http://irep.iium.edu.my/43570/ http://irep.iium.edu.my/43570/ http://irep.iium.edu.my/43570/1/Published_full_paper.pdf

id	iium-43570
recordtype	eprints
spelling	iium-435702017-11-07T02:48:25Z http://irep.iium.edu.my/43570/ Returns to education and wage differentials in Malaysia Mohd Arshad, Mohd Nahar Mat Ghani, Gairuzazmi H Social Sciences (General) The main objective of this study is to estimate the effects of education on earnings of Malaysians. To achieve the objective, a Mincerian earning function has been estimated using Malaysia’s Household Income Survey 2009. Apart from considering levels of qualification, factors such as age, marital status, ethnicity, occupational types and geographical locations have been considered in the estimations. The results show that the rates of return in Malaysia are high and positive, especially at the upper secondary and university education levels. Male workers, on average, received 40.3% higher than their female counterparts, holding other factors constant. There is also significant evidence of wage differential attributable to regional/urban-rural locations in Malaysia. By occupational activities, our estimates suggest that employers received the highest income, followed by those in public service, private sector, and then self-employed workers. Wage differential in Malaysia is also explained by ethnicity. Tennessee State University 2015-06 Article PeerReviewed application/pdf en http://irep.iium.edu.my/43570/1/Published_full_paper.pdf Mohd Arshad, Mohd Nahar and Mat Ghani, Gairuzazmi (2015) Returns to education and wage differentials in Malaysia. The Journal of Developing Areas, 49 (5). pp. 213-223. ISSN 0022-037X (P), 1548-2278 (O) https://muse.jhu.edu/login?auth=0&type=summary&url=/journals/journal_of_developing_areas/v049/49.5.arshad.html
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	H Social Sciences (General)
spellingShingle	H Social Sciences (General) Mohd Arshad, Mohd Nahar Mat Ghani, Gairuzazmi Returns to education and wage differentials in Malaysia
description	The main objective of this study is to estimate the effects of education on earnings of Malaysians. To achieve the objective, a Mincerian earning function has been estimated using Malaysia’s Household Income Survey 2009. Apart from considering levels of qualification, factors such as age, marital status, ethnicity, occupational types and geographical locations have been considered in the estimations. The results show that the rates of return in Malaysia are high and positive, especially at the upper secondary and university education levels. Male workers, on average, received 40.3% higher than their female counterparts, holding other factors constant. There is also significant evidence of wage differential attributable to regional/urban-rural locations in Malaysia. By occupational activities, our estimates suggest that employers received the highest income, followed by those in public service, private sector, and then self-employed workers. Wage differential in Malaysia is also explained by ethnicity.
format	Article
author	Mohd Arshad, Mohd Nahar Mat Ghani, Gairuzazmi
author_facet	Mohd Arshad, Mohd Nahar Mat Ghani, Gairuzazmi
author_sort	Mohd Arshad, Mohd Nahar
title	Returns to education and wage differentials in Malaysia
title_short	Returns to education and wage differentials in Malaysia
title_full	Returns to education and wage differentials in Malaysia
title_fullStr	Returns to education and wage differentials in Malaysia
title_full_unstemmed	Returns to education and wage differentials in Malaysia
title_sort	returns to education and wage differentials in malaysia
publisher	Tennessee State University
publishDate	2015
url	http://irep.iium.edu.my/43570/ http://irep.iium.edu.my/43570/ http://irep.iium.edu.my/43570/1/Published_full_paper.pdf
first_indexed	2023-09-18T21:02:05Z
last_indexed	2023-09-18T21:02:05Z
_version_	1777410691050766336

Returns to education and wage differentials in Malaysia

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