Occupational segregation and discrimination

Revisiting wage differential between native and foreign workers in the Malaysian manufacturing sector

Research output: Contribution to journalArticle

Abstract

The present study revisited the native-foreign workers wage differential in the Malaysian manufacturing sector with consideration of occupational segregation using the extended Brown et al. decomposition. The extended Brown et al. decomposition was used to overcome both the index number problems of Type I and Type II and examine relatively more accurate of the impacts of discrimination and composition effects on both within- and between occupation wage differential. The results show that foreign workers are significantly over-represented in "unskilled worker" occupation category and under-represented in others. Overall, the discrimination effect is a relatively major reason contributing to the native-foreign worker wage differential. Specifically, the discrimination effect dominantly accounts for the wage differential of given occupations. Meanwhile, for the between-occupation wage differential, it seems to be relatively insignificant though the effects on the access to each occupation show obvious heterogeneity.

Original languageEnglish
Pages (from-to)33-51
Number of pages19
JournalInternational Journal of Economics and Management
Volume12
Issue number1
Publication statusPublished - 1 Jun 2018

Fingerprint

Wage differentials
Manufacturing sector
Occupational segregation
Discrimination
Workers
Decomposition
Index numbers
Composition effect

Keywords

  • Discrimination
  • Foreign workers
  • Occupational segregation
  • Wage differential

ASJC Scopus subject areas

  • Business and International Management
  • Economics, Econometrics and Finance(all)
  • Strategy and Management

Cite this

@article{67cf83b0bc5d4cbda08b1316c2c34e7b,
title = "Occupational segregation and discrimination: Revisiting wage differential between native and foreign workers in the Malaysian manufacturing sector",
abstract = "The present study revisited the native-foreign workers wage differential in the Malaysian manufacturing sector with consideration of occupational segregation using the extended Brown et al. decomposition. The extended Brown et al. decomposition was used to overcome both the index number problems of Type I and Type II and examine relatively more accurate of the impacts of discrimination and composition effects on both within- and between occupation wage differential. The results show that foreign workers are significantly over-represented in {"}unskilled worker{"} occupation category and under-represented in others. Overall, the discrimination effect is a relatively major reason contributing to the native-foreign worker wage differential. Specifically, the discrimination effect dominantly accounts for the wage differential of given occupations. Meanwhile, for the between-occupation wage differential, it seems to be relatively insignificant though the effects on the access to each occupation show obvious heterogeneity.",
keywords = "Discrimination, Foreign workers, Occupational segregation, Wage differential",
author = "Hong, {Du Yu} and Shahiri, {Hazrul Izuan}",
year = "2018",
month = "6",
day = "1",
language = "English",
volume = "12",
pages = "33--51",
journal = "International Journal of Economics and Management",
issn = "1823-836X",
publisher = "Universiti Putra Malaysia",
number = "1",

}

TY - JOUR

T1 - Occupational segregation and discrimination

T2 - Revisiting wage differential between native and foreign workers in the Malaysian manufacturing sector

AU - Hong, Du Yu

AU - Shahiri, Hazrul Izuan

PY - 2018/6/1

Y1 - 2018/6/1

N2 - The present study revisited the native-foreign workers wage differential in the Malaysian manufacturing sector with consideration of occupational segregation using the extended Brown et al. decomposition. The extended Brown et al. decomposition was used to overcome both the index number problems of Type I and Type II and examine relatively more accurate of the impacts of discrimination and composition effects on both within- and between occupation wage differential. The results show that foreign workers are significantly over-represented in "unskilled worker" occupation category and under-represented in others. Overall, the discrimination effect is a relatively major reason contributing to the native-foreign worker wage differential. Specifically, the discrimination effect dominantly accounts for the wage differential of given occupations. Meanwhile, for the between-occupation wage differential, it seems to be relatively insignificant though the effects on the access to each occupation show obvious heterogeneity.

AB - The present study revisited the native-foreign workers wage differential in the Malaysian manufacturing sector with consideration of occupational segregation using the extended Brown et al. decomposition. The extended Brown et al. decomposition was used to overcome both the index number problems of Type I and Type II and examine relatively more accurate of the impacts of discrimination and composition effects on both within- and between occupation wage differential. The results show that foreign workers are significantly over-represented in "unskilled worker" occupation category and under-represented in others. Overall, the discrimination effect is a relatively major reason contributing to the native-foreign worker wage differential. Specifically, the discrimination effect dominantly accounts for the wage differential of given occupations. Meanwhile, for the between-occupation wage differential, it seems to be relatively insignificant though the effects on the access to each occupation show obvious heterogeneity.

KW - Discrimination

KW - Foreign workers

KW - Occupational segregation

KW - Wage differential

UR - http://www.scopus.com/inward/record.url?scp=85050922344&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85050922344&partnerID=8YFLogxK

M3 - Article

VL - 12

SP - 33

EP - 51

JO - International Journal of Economics and Management

JF - International Journal of Economics and Management

SN - 1823-836X

IS - 1

ER -