Labour demand elasticity and manpower requirements of skilled labour in Malaysian manufacturing sector

Research output: Contribution to journalArticle

Abstract

The objective of this study is to analyse short term and long term effects of labour demand, which are professional and technical labour using the dynamic panel model. By using the seemingly unrelated regression, this study estimates the elasticities of labour demand for these two high-level occupations. Based on the elasticities, this study forecast the requirements of these two occupational categories. The data of fifteen sub sectors of the manufacturing sector from 1990 to 2010 period obtained from the Industrial Manufacturing Survey, Malaysia were utilized. The findings show the elasticity of labour-output is generally positive, while the elasticity of labour-wage are positive and negative depending on the occupational category. The forecast of the manpower requirements both for professional and technical group are highly dependent on the output growth of a sector, and the initial manpower stocks are dominated by the technical labour group.

Original languageEnglish
Pages (from-to)2235-2250
Number of pages16
JournalInternational Journal of Economic Research
Volume13
Issue number5
Publication statusPublished - 2016

Fingerprint

Labour demand
Demand elasticity
Manpower
Elasticity
Skilled labor
Manufacturing sector
Labor
Seemingly unrelated regression
Demand for labor
Output growth
Dynamic panel model
Manufacturing
Malaysia
Wages

Keywords

  • Labour demand elasticity
  • Manpower requirement
  • Manufacturing sector
  • Skilled labour

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics, Econometrics and Finance(all)

Cite this

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title = "Labour demand elasticity and manpower requirements of skilled labour in Malaysian manufacturing sector",
abstract = "The objective of this study is to analyse short term and long term effects of labour demand, which are professional and technical labour using the dynamic panel model. By using the seemingly unrelated regression, this study estimates the elasticities of labour demand for these two high-level occupations. Based on the elasticities, this study forecast the requirements of these two occupational categories. The data of fifteen sub sectors of the manufacturing sector from 1990 to 2010 period obtained from the Industrial Manufacturing Survey, Malaysia were utilized. The findings show the elasticity of labour-output is generally positive, while the elasticity of labour-wage are positive and negative depending on the occupational category. The forecast of the manpower requirements both for professional and technical group are highly dependent on the output growth of a sector, and the initial manpower stocks are dominated by the technical labour group.",
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AB - The objective of this study is to analyse short term and long term effects of labour demand, which are professional and technical labour using the dynamic panel model. By using the seemingly unrelated regression, this study estimates the elasticities of labour demand for these two high-level occupations. Based on the elasticities, this study forecast the requirements of these two occupational categories. The data of fifteen sub sectors of the manufacturing sector from 1990 to 2010 period obtained from the Industrial Manufacturing Survey, Malaysia were utilized. The findings show the elasticity of labour-output is generally positive, while the elasticity of labour-wage are positive and negative depending on the occupational category. The forecast of the manpower requirements both for professional and technical group are highly dependent on the output growth of a sector, and the initial manpower stocks are dominated by the technical labour group.

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