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...
| Main Authors: | , |
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| Format: | Proceeding Paper |
| Language: | English |
| Published: |
2015
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/45138/ http://irep.iium.edu.my/45138/1/45138.pdf |
| _version_ | 1848782736851992576 |
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| author | Yusoff, Mohammed Syed Salleh, Sharifah Nabila |
| author_facet | Yusoff, Mohammed Syed Salleh, Sharifah Nabila |
| author_sort | Yusoff, Mohammed |
| building | IIUM Repository |
| collection | Online Access |
| 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.
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| first_indexed | 2025-11-14T16:10:12Z |
| format | Proceeding Paper |
| id | iium-45138 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T16:10:12Z |
| publishDate | 2015 |
| recordtype | eprints |
| repository_type | Digital Repository |
| 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 Proceeding Paper 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 |
| 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 |
| title | 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_short | Determinants of labor employment in the manufacturing sector of Malaysia |
| title_sort | determinants of labor employment in the manufacturing sector of malaysia |
| topic | HB Economic Theory HD4801 Labor. Work. Working class |
| url | http://irep.iium.edu.my/45138/ http://irep.iium.edu.my/45138/ http://irep.iium.edu.my/45138/1/45138.pdf |