Labor employment in the manufacturing sector of Malaysia

The manufacturing sector has been contributing significantly to the Malaysia’s economy in terms of its contribution to GDP, employment, and exports. This paper examines the determinants of employment of labor in the Malaysian manufacturing sector.We estimate the model using...

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Main Authors:	Yusoff, Mohammed, Syed Salleh, Sharifah Nabilah
Format:	Article
Language:	English
Published:	International Institute of Academic Research and Development 2017
Subjects:	HD2321 Industry HD4801 Labor. Work. Working class
Online Access:	http://irep.iium.edu.my/61232/ http://irep.iium.edu.my/61232/ http://irep.iium.edu.my/61232/1/Labor%20Employment%20in%20manufacturing%20sector%20of%20Malaysia.pdf

id	iium-61232
recordtype	eprints
spelling	iium-612322019-12-10T00:45:07Z http://irep.iium.edu.my/61232/ Labor employment in the manufacturing sector of Malaysia Yusoff, Mohammed Syed Salleh, Sharifah Nabilah HD2321 Industry HD4801 Labor. Work. Working class The manufacturing sector has been contributing significantly to the Malaysia’s economy in terms of its contribution to GDP, employment, and exports. This paper examines the determinants of employment of labor in the Malaysian manufacturing sector.We estimate the model using the instrumental variable technique and the results suggest that the real wage rate, output represented by the value added , and capital represented by the value of fixed assets are all important determinants of labor employment in manufacturing sector in Malaysia.This implies that implementing policies to encourage capital accumulation and overall economic growth are indeed helpful to boost employment in the manufacturing sector. The elasticity of labor employment with respect to wage rate is 1.86 suggesting that labor employment is responsive to the changes in wage rate; a 1% decrease in wage rate increases employment by 1.86% which will then spur the manufacturing output which are mostly exported to foreign countries. This suggests that employment in the manufacturing sector could be created through wage reduction , increase in capital and output level. International Institute of Academic Research and Development 2017 Article PeerReviewed application/pdf en http://irep.iium.edu.my/61232/1/Labor%20Employment%20in%20manufacturing%20sector%20of%20Malaysia.pdf Yusoff, Mohammed and Syed Salleh, Sharifah Nabilah (2017) Labor employment in the manufacturing sector of Malaysia. International Journal of Economics and Financial Management, 2 (4). pp. 58-66. ISSN 2545 5966 http://www.iiardpub.org
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HD2321 Industry HD4801 Labor. Work. Working class
spellingShingle	HD2321 Industry HD4801 Labor. Work. Working class Yusoff, Mohammed Syed Salleh, Sharifah Nabilah Labor employment in the manufacturing sector of Malaysia
description	The manufacturing sector has been contributing significantly to the Malaysia’s economy in terms of its contribution to GDP, employment, and exports. This paper examines the determinants of employment of labor in the Malaysian manufacturing sector.We estimate the model using the instrumental variable technique and the results suggest that the real wage rate, output represented by the value added , and capital represented by the value of fixed assets are all important determinants of labor employment in manufacturing sector in Malaysia.This implies that implementing policies to encourage capital accumulation and overall economic growth are indeed helpful to boost employment in the manufacturing sector. The elasticity of labor employment with respect to wage rate is 1.86 suggesting that labor employment is responsive to the changes in wage rate; a 1% decrease in wage rate increases employment by 1.86% which will then spur the manufacturing output which are mostly exported to foreign countries. This suggests that employment in the manufacturing sector could be created through wage reduction , increase in capital and output level.
format	Article
author	Yusoff, Mohammed Syed Salleh, Sharifah Nabilah
author_facet	Yusoff, Mohammed Syed Salleh, Sharifah Nabilah
author_sort	Yusoff, Mohammed
title	Labor employment in the manufacturing sector of Malaysia
title_short	Labor employment in the manufacturing sector of Malaysia
title_full	Labor employment in the manufacturing sector of Malaysia
title_fullStr	Labor employment in the manufacturing sector of Malaysia
title_full_unstemmed	Labor employment in the manufacturing sector of Malaysia
title_sort	labor employment in the manufacturing sector of malaysia
publisher	International Institute of Academic Research and Development
publishDate	2017
url	http://irep.iium.edu.my/61232/ http://irep.iium.edu.my/61232/ http://irep.iium.edu.my/61232/1/Labor%20Employment%20in%20manufacturing%20sector%20of%20Malaysia.pdf
first_indexed	2023-09-18T21:26:51Z
last_indexed	2023-09-18T21:26:51Z
_version_	1777412248638062592

Labor employment in the manufacturing sector of Malaysia

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