Impact of foreign workers on labour productivity: Analysis of firm level data

Rahmah Ismail

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

The majority of foreign workers in Malaysia are unskilled and more than half come from Indonesia. Nowadays, labour productivity is the main concern of firms in a bid to reduce the cost of production and be more competitive. Therefore, the issue is whether foreign workers have an adverse effect on labour productivity in Malaysia. The present paper attempts to investigate this issue using data from 279 companies in 2011 collected by means of a field survey. The companies are located in Kuala Lumpur, Selangor, Pahang, Terengganu and Johor in Malaysia. The labour productivity model is estimated using local and foreign workers, skilled labour, semiskilled labour and unskilled; labour as independent variables. The results show that skilled foreign workers do not contribute significantly to labour productivity. Instead, the unskilled and semiskilled foreign workers have a significant and negative impact on labour productivity.

Original languageEnglish
Pages (from-to)36-53
Number of pages18
JournalInternational Journal of Productivity and Quality Management
Volume16
Issue number1
DOIs
Publication statusPublished - 2015

Fingerprint

Labour productivity
Firm-level data
Workers
Productivity analysis
Malaysia
Labor
Bid
Skilled labor
Cost of production
Indonesia

Keywords

  • Companies
  • Competitiveness
  • Labour productivity
  • Malaysia.
  • Semiskilled foreign workers
  • Semiskilled local workers
  • Skilled foreign workers
  • Skilled local workers
  • Unskilled foreign workers
  • Unskilled local workers

ASJC Scopus subject areas

  • Business, Management and Accounting(all)

Cite this

Impact of foreign workers on labour productivity : Analysis of firm level data. / Ismail, Rahmah.

In: International Journal of Productivity and Quality Management, Vol. 16, No. 1, 2015, p. 36-53.

Research output: Contribution to journalArticle

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