Human capital and income distribution in Malaysia: A case study

Rahmah Ismail, Ishak Yussof

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

Malaysia has achieved a remarkably high economic growth as a result of strong government policy and political stability. The national vision to achieve the status of newly industrialized nation by year 2020 seemed to be realized. However, achieving high economic growth alone cannot guarantee a decent life of the society if there is large income gap between them. Based on the historical data, the trend of income inequality in Malaysia has been unstable since independence even though human capital development has been expanding over time. This paper aims to identify the role of human capital in explaining income distribution in Malaysia. The analysis is based on 4,003 household data collected through a survey conducted in 2007-2008 throughout the Peninsular Malaysia. The study constructs Gini coefficient by various segments like ethnics, regions and strata to look at patterns of income distribution. In addition, other measurements of income distribution such as income ratio and income percentage will also be used in the analysis. A regression model will be specified to estimate the role of human capital on income distribution. In the model, household income ratio will be used as dependent variable whilst household characteristics including human capital achievement, location and regions will act as independent variables.

Original languageEnglish
Pages (from-to)25-46
Number of pages22
JournalJournal of Economic Cooperation and Development
Volume31
Issue number2
Publication statusPublished - Apr 2010

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income distribution
human capital
Malaysia
income
economic growth
political stability
difference in income
social stratum
household income
government policy
guarantee
regression
Income distribution
Human capital
trend
Income
Distribution of income
Economic growth
Household

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics
  • Political Science and International Relations

Cite this

Human capital and income distribution in Malaysia : A case study. / Ismail, Rahmah; Yussof, Ishak.

In: Journal of Economic Cooperation and Development, Vol. 31, No. 2, 04.2010, p. 25-46.

Research output: Contribution to journalArticle

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