Human capital and regional wage differentials in Malaysia

Rahmah Ismail, Mohd Nasir Mohd Saukani, Norlinda Tendot Abu Bakar

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

Regional wage inequality in Malaysia is still prevalent widely with more developed regions receiving higher proportions of wages compared to the less developed ones. Human capital theory postulates there is a positive relationship between human capital attainment and wages received by individuals through productivity enhancement. The objective of the paper is to analyse the effect of human capital on the household level of wages and to identify the determinants of wage differentials between developed and less developed regions. The analysis is based on the data collected from the field survey on 4,003 households in Peninsular Malaysia in 2007/2008. We find that human capital variables play an important role in determining the regional wage level and wage differentials in Malaysia.

Original languageEnglish
Pages (from-to)328-338
Number of pages11
JournalActual Problems of Economics
Volume155
Issue number5
Publication statusPublished - 2014

Fingerprint

Wage differentials
Wages
Malaysia
Human capital
Household
Proportion
Productivity
Human capital theory
Enhancement
Wage inequality

Keywords

  • Household
  • Human capital
  • Malaysia
  • Region
  • Regional wage differentials

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Human capital and regional wage differentials in Malaysia. / Ismail, Rahmah; Mohd Saukani, Mohd Nasir; Bakar, Norlinda Tendot Abu.

In: Actual Problems of Economics, Vol. 155, No. 5, 2014, p. 328-338.

Research output: Contribution to journalArticle

Ismail, Rahmah ; Mohd Saukani, Mohd Nasir ; Bakar, Norlinda Tendot Abu. / Human capital and regional wage differentials in Malaysia. In: Actual Problems of Economics. 2014 ; Vol. 155, No. 5. pp. 328-338.
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