Demand and supply effects on native immigrant wage differentials: the case of Malaysia

Borhan Abdullah and Alexandros Zangelidis and Ioannis Theodossiou (2023) Demand and supply effects on native immigrant wage differentials: the case of Malaysia. Journal for Labour Market Research, 57 (22). pp. 1-13.

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Abstract

This paper uses a matched employee-employer dataset using the Productivity and Investment Climate Survey 2007 to assess the relative effect of demand and supply-side characteristics on the wages of native and immigrant workers in Malaysia. In doing so, the study demonstrates noteworthy differences in the wage determination process. Individual supply-side characteristics are found to be a key determinant of wages for native workers and are relatively more important in explaining the wage variation than demand-side effects. In contrast, individual supply-side characteristics are found to explain noticeably less of the wage variation for immigrant workers. Therefore, this study reveals that native and immigrant wages do not solely reflect the workers’ productivity, although this effect is far more pronounced for the migrant workers.

Item Type:	Article
Keyword:	Firm characteristics, Demand-side, Wage diferentials, Migration
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28-9999 Industries. Land use. Labor > HD4801-8943 Labor. Work. Working class > HD4909-5100.9 Wages H Social Sciences > HD Industries. Land use. Labor > HD28-9999 Industries. Land use. Labor > HD4801-8943 Labor. Work. Working class > HD8045-8943 By region or country
Department:	FACULTY > Faculty of Business, Economics and Accounting
Depositing User:	SITI AZIZAH BINTI IDRIS -
Date Deposited:	02 Oct 2023 15:33
Last Modified:	02 Oct 2023 15:33
URI:	https://eprints.ums.edu.my/id/eprint/37459

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