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Who Gain and Lose from the Minimum Wage Policy?

Jurnal Ekonomi Malaysia

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Title Who Gain and Lose from the Minimum Wage Policy?
 
Creator Saari, Mohd Yusof
Hassan, Azman
Said, Rusmawati
 
Subject Minimum wage; input-output; income distribution; ethnic groups

 
Description ABSTRACTThis study examines the effectiveness of the minimum wage as a mechanism for income redistribution among major ethnic groups in Malaysia. Taking into consideration the benefits and costs of minimum wage, the results show that thewage policy potentially boosts the incomes of ethnic Indians and ethnic Malays, whereas the wage policy marginally affects ethnic Chinese. The estimates also do not provide strong support for the notion that minimum wage legislation inMalaysia is likely to be an effective policy for income redistribution. The effectiveness of the minimum wage legislation is constrained by its limitation to account for informal sector workers.Keywords: Minimum wage; input-output; income distribution; ethnic groupsABSTRAKKajian ini mengkaji keberkesanan upah minimum sebagai satu mekanisma pengagihan semula pendapatan antara kumpulan etnik utama di Malaysia. Dengan mengambil kira faedah dan kos upah minimum, dapatan kajian menunjukkan dasar upah berpotensi untuk meningkatkan pendapatan etnik India dan etnik Melayu, manakala dasar upah ini memberi kesan yang kecil kepada etnik Cina. Dapatan kajian juga tidak memberi sokongan yang kuat kepada tanggapan bahawa dasar upah minimum di Malaysia berkemungkinan menjadi dasar yang berkesan untuk pengagihan semula pendapatan. Keberkesanan dasar upah minimum dikekang oleh liputan yang tidak mengambil kira pekerja di sektor tidak formal.Katakunci: Upah minimum; input-output; agihan pendapatan; kumpulan etn
 
Publisher Universiti Kebangsaan Malaysia
 
Contributor
 
Date 2013-12-31
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://ejournal.ukm.my/jem/article/view/7276
 
Source Jurnal Ekonomi Malaysia; Vol 47, No 2 (2013): Jurnal Ekonomi Malaysia; 173-182
0126-1962
 
Language eng
 
Relation http://ejournal.ukm.my/jem/article/view/7276/2929