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  • Title: Labor markets and economic development in Malaysia.
    Author: Smith JP.
    Journal: Res Popul Econ; 1991; 7():131-56. PubMed ID: 12317026.
    Abstract:
    A researcher analyzed data on male workers from 1262 households from Peninsular Malaysia (1976-1977 Malaysian Family Life Survey) to identify the leading effects of economic development for earnings and employment patterns within labor markets. All 3 major ethnic groups in Malaysia profited from the increasing levels of real income over time. The relative income of ethnic Malays, the poorest socioeconomic class, increased more so than the Chinese and Indians. Yet the income of Chinese was 108% higher than Malays and that of Indians was 60%. The difference between Malays and Chinese grew considerably as men aged. Further economic growth resulted in higher earnings for young men than for older men. In addition, the more educated men were the higher their earnings. In fact, education was the most significant determinant of time related growth in incomes. Further, income of men who participated in job training programs grew 2 times as fast than that of men who did not participate in job training programs. Lastly, economic growth increased earnings of men in urban areas more so than those in rural areas. Malaysia had put a lot of time and resources in research and development in rubber and rice production which has resulted in continual introduction of new varieties of rubber trees and rice. These new varieties have increased production considerably. In conclusion, Malaysia was able to experience economic growth because it invested in education and job training for male workers and in research and development to advance production of its 2 most important commodities--rubber and rice.
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