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An Analysis of the Reduction of the Ethnic Economic Gap in Malaysia under the New Economy Policy: Evidence from Ethnic Occupation Segregation and Wage Differential

Jurnal Ekonomi Malaysia

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Title An Analysis of the Reduction of the Ethnic Economic Gap in Malaysia under the New Economy Policy: Evidence from Ethnic Occupation Segregation and Wage Differential
 
Creator Shahiri, Hazrul
 
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Description ABSTRACTThis paper estimates the ethnic economic gap in Malaysia before the New Economic Policy (NEP) in 1970 and after the end of the NEP in 1986. Specifically, this paper uses the Duncan Dissimilarity Index to estimate occupation segregation between ethnic Malays and the ethnic Chinese; ethnic Malays and ethnic Indians; and the ethnic Chinese and ethnic Indians before and after the policy. Next, the paper estimates the wage gap between the three ethnicities by using A Generalized Oaxaca Decomposition, both before and after the NEP. The data of this study is obtained from two principal sources. Data concerning wage and salary figures is obtained fromthe1966-67 West Malaysian Family Survey; 1976- 77 First Malaysian Family Life Survey; and the 1988 Second Malaysian Family Life Survey. The other sources of data variables are obtained from the 1970 Population Census of Peninsular Malaysia; the 1980 Population Censusof Peninsular Malaysia; and the 1991 Population and Housing Census of Malaysia. The study finds that occupation segregation was reduced between all ethnicities by the end of the NEP. However, the wage gap between the ethnic Chinese and ethnic Malays; and the ethnic Chinese and ethnic Indians continued to rise after 1986.Additionally, while the wage gap decreased between ethnic Malays and ethnic Indians in some specific occupations, the wage gap increased between ethnic Malays and the ethnic Chinese in all specific occupations during the same period.Keywords: Occupation; Oaxaca; segregation; wageABSTRAKArtikel ini menganggarkan jurang etnik ekonomi di Malaysia sebelum Dasar Ekonomi Baru (DEB) pada tahun 1970 dan selepas berakhirnya DEB pada tahun 1986. Khususnya, kertas ini menggunakan Indeks perbezaan Duncan untuk menganggarkan taburan pengasingan pekerjaan penduduk antara Melayu dan etnik Cina; Melayu danetnik India; dan etnik Cina dan etnik India sebelum dan selepas polisi. Seterusnya, kertas menganggarkan jurang gaji antara tiga etnik dengan menggunakan dekomposisi umum Oaxaca untuk mengira perbezaan gaji sebelum dan selepas DEB. Data kajian ini diperolehi daripada dua sumber utama. Data mengenai upah dan gaji diperoleh dari Penyiasatan 1966-67Keluarga Malaysia Barat, Kajian Keluarga dan Kehidupan Pertama Malaysia 1977 dan Kajian Keluarga dan Kehidupan Kedua Malaysia 1988. Sumber-sumber lain pembolehubah data diperolehi dari Banci 1970 Penduduk Semenanjung Malaysia; Banci Penduduk 1980 Semenanjung Malaysia; dan Banci Penduduk 1991 Malaysia. Kajian ini mendapati bahawa taburan pengasingan pekerjaan pendudukan telah berkurang antara semua etnik setelah berakhirnya DEB. Walau bagaimanapun, jurang gaji antara Melayu Cina dan etnik India; dan etnik Cina dan etnik India terus meningkatselepas 1986. Dalam masa sama ketika jurang gaji antara Melayu dan etnik India dalam beberapa pekerjaan tertentutelah menurun, jurang gaji antara Melayu dan etnik Cina dalams emua pekerjaan terus meningkat.Kata kunci: pekerjaan; Oaxaca; pengasingan; gaji
 
Publisher Universiti Kebangsaan Malaysia
 
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Date 2012-12-31
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
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Format application/pdf
 
Identifier http://ejournal.ukm.my/jem/article/view/2733
 
Source Jurnal Ekonomi Malaysia; Vol 46, No 2 (2012): Jurnal Ekonomi Malaysia
0126-1962
 
Language eng
 
Relation http://ejournal.ukm.my/jem/article/view/2733/1782
 
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