A hedonic wage regression model for vulnerable workers in Malaysia: the use of exclusion restriction as a remedy for self-selection bias
This paper uses an exclusion restriction variable as the key to resolve an identification problem in self-selection bias of a wage regression model. The study basically utilizes Hedonic Wage Theory (Rosen 1986, 1974) to test the relationship between vulnerable workers and wage. Analysis was made usi...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2020
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| Online Access: | http://journalarticle.ukm.my/15362/ http://journalarticle.ukm.my/15362/1/20.pdf |
| _version_ | 1848813782328934400 |
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| author | Hazrul Shahiri, Park, Kihong Zulkifly Osman, |
| author_facet | Hazrul Shahiri, Park, Kihong Zulkifly Osman, |
| author_sort | Hazrul Shahiri, |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | This paper uses an exclusion restriction variable as the key to resolve an identification problem in self-selection bias of a wage regression model. The study basically utilizes Hedonic Wage Theory (Rosen 1986, 1974) to test the relationship between vulnerable workers and wage. Analysis was made using the Mincerian semi-log earnings function (Mincer 1974) specified in the tradition of Becker’s Human Capital Model (Becker 1964) with a correction for self-selection bias. A total of 1705 private sector employees were selected and the result showed that the coefficient for predicted vulnerable worker variable was significant but non-positive. The implication of this result is that no adjustments in wages are made to compensate workers for undesirable job conditions. A third party, namely government interventions, is therefore needed in order to protect and enhance the well-being of the vulnerable workers. |
| first_indexed | 2025-11-15T00:23:39Z |
| format | Article |
| id | oai:generic.eprints.org:15362 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T00:23:39Z |
| publishDate | 2020 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:153622020-10-16T01:13:05Z http://journalarticle.ukm.my/15362/ A hedonic wage regression model for vulnerable workers in Malaysia: the use of exclusion restriction as a remedy for self-selection bias Hazrul Shahiri, Park, Kihong Zulkifly Osman, This paper uses an exclusion restriction variable as the key to resolve an identification problem in self-selection bias of a wage regression model. The study basically utilizes Hedonic Wage Theory (Rosen 1986, 1974) to test the relationship between vulnerable workers and wage. Analysis was made using the Mincerian semi-log earnings function (Mincer 1974) specified in the tradition of Becker’s Human Capital Model (Becker 1964) with a correction for self-selection bias. A total of 1705 private sector employees were selected and the result showed that the coefficient for predicted vulnerable worker variable was significant but non-positive. The implication of this result is that no adjustments in wages are made to compensate workers for undesirable job conditions. A third party, namely government interventions, is therefore needed in order to protect and enhance the well-being of the vulnerable workers. Penerbit Universiti Kebangsaan Malaysia 2020-04 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/15362/1/20.pdf Hazrul Shahiri, and Park, Kihong and Zulkifly Osman, (2020) A hedonic wage regression model for vulnerable workers in Malaysia: the use of exclusion restriction as a remedy for self-selection bias. Sains Malaysiana, 49 (4). pp. 909-918. ISSN 0126-6039 http://www.ukm.my/jsm/malay_journals/jilid49bil4_2020/KandunganJilid49Bil4_2020.html |
| spellingShingle | Hazrul Shahiri, Park, Kihong Zulkifly Osman, A hedonic wage regression model for vulnerable workers in Malaysia: the use of exclusion restriction as a remedy for self-selection bias |
| title | A hedonic wage regression model for vulnerable workers in Malaysia: the use of exclusion restriction as a remedy for self-selection bias |
| title_full | A hedonic wage regression model for vulnerable workers in Malaysia: the use of exclusion restriction as a remedy for self-selection bias |
| title_fullStr | A hedonic wage regression model for vulnerable workers in Malaysia: the use of exclusion restriction as a remedy for self-selection bias |
| title_full_unstemmed | A hedonic wage regression model for vulnerable workers in Malaysia: the use of exclusion restriction as a remedy for self-selection bias |
| title_short | A hedonic wage regression model for vulnerable workers in Malaysia: the use of exclusion restriction as a remedy for self-selection bias |
| title_sort | hedonic wage regression model for vulnerable workers in malaysia: the use of exclusion restriction as a remedy for self-selection bias |
| url | http://journalarticle.ukm.my/15362/ http://journalarticle.ukm.my/15362/ http://journalarticle.ukm.my/15362/1/20.pdf |