Measuring mismatch unemployment in the Malaysia labour market
Despite its low unemployment rate, the Malaysia labour market is currently sending signals of mismatch, a misallocation between demand and supply that may occur in the form of educational, skills, geographical, occupational, and industrial mismatches. Failure to identify the right type of mismatches...
| Main Authors: | , , , , |
|---|---|
| Format: | Article |
| Published: |
Oxford University Press
2021
|
| Online Access: | http://psasir.upm.edu.my/id/eprint/94111/ |
| _version_ | 1848861913713213440 |
|---|---|
| author | Said, Rusmawati Jamaludin, Salwaty Ismail, Normaz Wana Mohamed Nor, Norashidah Yong, Chen Chen |
| author_facet | Said, Rusmawati Jamaludin, Salwaty Ismail, Normaz Wana Mohamed Nor, Norashidah Yong, Chen Chen |
| author_sort | Said, Rusmawati |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Despite its low unemployment rate, the Malaysia labour market is currently sending signals of mismatch, a misallocation between demand and supply that may occur in the form of educational, skills, geographical, occupational, and industrial mismatches. Failure to identify the right type of mismatches will lead to ineffective policies to solve the unemployment issue. Using matching function, this study aims to calculate the labour mismatch index and measure the contribution of mismatch unemployment to the rise of unemployment rate. Employing various sources of data from the Department of Statistics Malaysia, Ministry of Human Resource Malaysia and Bank Negara Malaysia, this study found the presence of skills mismatch in the Malaysia labour market, with the mismatch index gradually increased from 0.108 in 2007 to 0.273 in 2017. Mismatch unemployment explained at most half of the total observed increase in unemployment rate, signalling severe mismatch in the Malaysia labour market. |
| first_indexed | 2025-11-15T13:08:41Z |
| format | Article |
| id | upm-94111 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-15T13:08:41Z |
| publishDate | 2021 |
| publisher | Oxford University Press |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-941112023-04-03T02:06:36Z http://psasir.upm.edu.my/id/eprint/94111/ Measuring mismatch unemployment in the Malaysia labour market Said, Rusmawati Jamaludin, Salwaty Ismail, Normaz Wana Mohamed Nor, Norashidah Yong, Chen Chen Despite its low unemployment rate, the Malaysia labour market is currently sending signals of mismatch, a misallocation between demand and supply that may occur in the form of educational, skills, geographical, occupational, and industrial mismatches. Failure to identify the right type of mismatches will lead to ineffective policies to solve the unemployment issue. Using matching function, this study aims to calculate the labour mismatch index and measure the contribution of mismatch unemployment to the rise of unemployment rate. Employing various sources of data from the Department of Statistics Malaysia, Ministry of Human Resource Malaysia and Bank Negara Malaysia, this study found the presence of skills mismatch in the Malaysia labour market, with the mismatch index gradually increased from 0.108 in 2007 to 0.273 in 2017. Mismatch unemployment explained at most half of the total observed increase in unemployment rate, signalling severe mismatch in the Malaysia labour market. Oxford University Press 2021-02-10 Article PeerReviewed Said, Rusmawati and Jamaludin, Salwaty and Ismail, Normaz Wana and Mohamed Nor, Norashidah and Yong, Chen Chen (2021) Measuring mismatch unemployment in the Malaysia labour market. Economic Policy, 14 (3). 227 - 247. ISSN 0266-4658; ESSN: 1468-0327 https://www.inderscienceonline.com/doi/abs/10.1504/IJEPEE.2021.114955 10.1504/IJEPEE.2021.114955 |
| spellingShingle | Said, Rusmawati Jamaludin, Salwaty Ismail, Normaz Wana Mohamed Nor, Norashidah Yong, Chen Chen Measuring mismatch unemployment in the Malaysia labour market |
| title | Measuring mismatch unemployment in the Malaysia labour market |
| title_full | Measuring mismatch unemployment in the Malaysia labour market |
| title_fullStr | Measuring mismatch unemployment in the Malaysia labour market |
| title_full_unstemmed | Measuring mismatch unemployment in the Malaysia labour market |
| title_short | Measuring mismatch unemployment in the Malaysia labour market |
| title_sort | measuring mismatch unemployment in the malaysia labour market |
| url | http://psasir.upm.edu.my/id/eprint/94111/ http://psasir.upm.edu.my/id/eprint/94111/ http://psasir.upm.edu.my/id/eprint/94111/ |