Determinants of 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 the instrumental variabl...

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Main Authors:	Yusoff, Mohammed, Syed Salleh, Sharifah Nabila
Format:	Conference or Workshop Item
Language:	English
Published:	2015
Subjects:	HB Economic Theory HD4801 Labor. Work. Working class
Online Access:	http://irep.iium.edu.my/45138/ http://irep.iium.edu.my/45138/ http://irep.iium.edu.my/45138/1/45138.pdf

id	iium-45138
recordtype	eprints
spelling	iium-451382016-05-24T03:29:01Z http://irep.iium.edu.my/45138/ Determinants of labor employment in the manufacturing sector of Malaysia Yusoff, Mohammed Syed Salleh, Sharifah Nabila HB Economic Theory 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. 2015-10 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/45138/1/45138.pdf Yusoff, Mohammed and Syed Salleh, Sharifah Nabila (2015) Determinants of labor employment in the manufacturing sector of Malaysia. In: Global Conference on Economics and Management Science 2015 (GEMS 2015), 12th-13th Oct. 2015, Bayview Beach Resort Penang Hotel, Penang. http://worldconferences.net/proceedings/gems2015/fullpaper/GE%20051%20DETERMINANTS%20OF%20LABOR%20EMPLOYMENT%20IN%20THE%20MANUFACTURING%20SECTOR%20OF%20MALAYSIA%20-%20MOHAMMED%20YUSOFF.pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HB Economic Theory HD4801 Labor. Work. Working class
spellingShingle	HB Economic Theory HD4801 Labor. Work. Working class Yusoff, Mohammed Syed Salleh, Sharifah Nabila Determinants of 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	Conference or Workshop Item
author	Yusoff, Mohammed Syed Salleh, Sharifah Nabila
author_facet	Yusoff, Mohammed Syed Salleh, Sharifah Nabila
author_sort	Yusoff, Mohammed
title	Determinants of labor employment in the manufacturing sector of Malaysia
title_short	Determinants of labor employment in the manufacturing sector of Malaysia
title_full	Determinants of labor employment in the manufacturing sector of Malaysia
title_fullStr	Determinants of labor employment in the manufacturing sector of Malaysia
title_full_unstemmed	Determinants of labor employment in the manufacturing sector of Malaysia
title_sort	determinants of labor employment in the manufacturing sector of malaysia
publishDate	2015
url	http://irep.iium.edu.my/45138/ http://irep.iium.edu.my/45138/ http://irep.iium.edu.my/45138/1/45138.pdf
first_indexed	2023-09-18T21:04:15Z
last_indexed	2023-09-18T21:04:15Z
_version_	1777410826782638080

Determinants of labor employment in the manufacturing sector of Malaysia

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