Does Labour Supply Respond to Globalisation? Malaysia Evidence from Micro Data
Globalisation is a phenomenon that cannot be avoided.
As globalisation allowed free flow of inputs including labour, it may
affect job opportunities for the locals. Therefore, investigate the
determinants of labour supply is essential in understanding the
structure of labour market in the new era of globalization. The
objective of this article is to examine labour supply by taking into
account the globalisation effect. The study covers 3885 households in
Peninsular Malaysia who are chosen using stratified random
sampling. The labour supply model will be the basis for the analysis.
The basic labour supply determinants are own wage and non-labour
income. However, the extended labour supply model incorporates
other variables like spouse wage，number of children and
individuals characteristics like education level and age. Besides, the
globalization indicator will also be incorporated as another
independent variable.
[1] Labour force survey report, Department of Statistics, 2010.
[2] P. Douglas, Theory of wages. New York: Macmillan, 1934.
[3] M. Evers, R.D. Moojj, and D.V. Vuuren, The wage elasticity of labour
supply: A synthesis of empirical estimates, De Economist, vol.156, pp.
25-43, 2008.
[4] W. M. Boal and M. R. Ransom, Monopsony in the labor market. Journal
of Economic Literature, vol. 35, pp.86-112, 1997.lication)," IEEE Trans.
Antennas Propagat., to be published.
[5] A. Manning, Monosony in motion: Imperfect competition in labour
market. Princeton, NJ: Princeton University Press, 2003.
[6] R. Blundell, and T. Macurddy, Labour supply: A review of alternative
approaches, in O. Ashenfelter and D. Card (Eds), Handbook of Labor
Economics, vol. 3A, Ch 27, Amsterdam, North Holland, 1999.
[7] M.R. Killingsworth, Labour supply. New York: Cambridge University
Press, 1983.
[8] P.J. Devereux, Changes in male labour supply and wages, Industrial and
Labour Relations Review, vol. 56, no.3, pp. 409-427, 2003.
[9] J. Mincer, Labor force participation of married women: A study of
labour supply. In Aspects of Labor Economics, Gregg, H., Lewis, H.G.,
Eds. Princeton NJ: Princeton University Press, 1962.
[10] C. Saget, The determinants of female labour supply in Hungary.
Economics Transition, vol. 7, no. 3, pp. 575-591, 1999.
[11] R. Morissette, and F. Hou, Does the labour supply of wives respond to
husbands- wages? Canadian evidence from micro data and grouped data,
Canadian Journal of Economics, vol. 41, no. 4, pp. 1186-1210, 2008.
[12] R.G. Penner, P. Perun, and E. Steurle, Legal and institutional
impediments to partial retirement and part-time work by older workers.
Washington D.C.: The Urban Institute, 2002.
[13] E. Wadensjo, Work and pension in Sweden. European Papers on the
New Welfare: The counter-ageing society. Milan: The Risk Institute,
2008, no. 9, pp.104-112.
[14] N.A. Maglad, Female labour supply in Sudan Nairobi: African
Economic Research Consortium, 1998, Special Paper 30.C. J. Kaufman,
Rocky Mountain Research Lab., Boulder, CO, private communication,
May 1995.
[15] D. Jolliffe, The impact of education in rural Ghana: Examining
household labour allocation and returns on and off the farm. Journal of
Developing Economics, vol. 73, pp. 287-314, 2004.
[16] O.M. Babikir and B.I. Babiker, The determinants of labour supply and
demand in irrigate agriculture: A case study of the Gezira Scheme in
Sudan. African Development Review, vol. 19, pp. 335-349, 2007.
[17] R. Gronau, The effect of children on the housewife-s value of time.
Journal of Political Economy, vol. 81, no. 2, pp. 168-199, 1973.
[18] M. Rosenzweig, and K.I. Wolpin, Life cycle labour supply and fertility:
Evidence from household models. Journal of Political Economy, vol.
88, pp. 328-348, 1980.
[19] T.P. Schults, Testing the neoclassical model of family labour supply and
fertility. Journal of Human Resources, vol. 25, pp. 599-634, 1990.
[20] R. Wong, and R. Levine, The effect of household structure on women-s
economic activity and fertility: Evidence from recent mother in urban
Mexico. Economic Development and Cultural Change, vol. 41, pp. 89-
102, 1992.
[21] M. Tienda, and J. Glass. Household structure and labour force
participation of Black, Hispanics and White mothers. Demography, vol.
22, pp. 381-394. 1985.
[22] T.P. Schultz, The Influence of fertility in labour supply of married
women: Simultaneous equation estimates, Research in Labour
Economics, vol. 2, pp.273-351 1978.
[23] E.L. Lehrer, The impact of children on married women-s labour supply:
Black-White differentials revisited. Journal of Human Resources, vol.
27, no. 3, pp. 422-444, 1992.
[24] P.S. Carlin and L. Flood, Do children affect the labour supply of
Swedish men? Time diary vs. survey data. Labour Economics, vol. 2,
pp.167-183, 1997.
[25] Rahmah Ismail & Fatimah Said, Women-s education and household
activities, in women and work, challenges in industrializing nations,
Maimunah Ismail and Aminah Ahmad, Eds. London: Asian Academic
Press, 1999.
[26] G. Borjas, The economics of immigration. Journal of Economic
Literature, vol. 32, pp.1667-1717, 1994.
[27] D. Card, Immigrant inflows, native outflows and the local labour market
impacts of higher immigration, Journal of Labor Economics, vol. 19, pp.
22-61, 2001.
[28] G. Borjas, The labour demand curve is downward sloping: Reexamining
the impact of immigration on the labour market,
Quarterly Journal of Economics, vol.118, pp.1335-1374, 2003.
[29] H. Bonin, Wage and employment effects of immigration to Germany:
Evidence from a skill group approach, IZA Discussion Paper No.1875,
2005.
[30] G.I. Ottaviano, and G. Peri, Immigration and national wages: clarifying
the theory and the empirics. NBER Working Paper 14188, National
Bureau of Economic Research, 2008.
[31] G. Peri, and C. Sparber, Task specialization, immigration, and wages.
American Economic Journal , 1(3), 135-69, 2009.
[32] S. Mocetti, and C. Porello, How does immigration affect native internal
mobility? New evidence from Italy. Regional Science and Urban
Economics, vol. 40, no. 6, pp. 427-439, 2010.
[1] Labour force survey report, Department of Statistics, 2010.
[2] P. Douglas, Theory of wages. New York: Macmillan, 1934.
[3] M. Evers, R.D. Moojj, and D.V. Vuuren, The wage elasticity of labour
supply: A synthesis of empirical estimates, De Economist, vol.156, pp.
25-43, 2008.
[4] W. M. Boal and M. R. Ransom, Monopsony in the labor market. Journal
of Economic Literature, vol. 35, pp.86-112, 1997.lication)," IEEE Trans.
Antennas Propagat., to be published.
[5] A. Manning, Monosony in motion: Imperfect competition in labour
market. Princeton, NJ: Princeton University Press, 2003.
[6] R. Blundell, and T. Macurddy, Labour supply: A review of alternative
approaches, in O. Ashenfelter and D. Card (Eds), Handbook of Labor
Economics, vol. 3A, Ch 27, Amsterdam, North Holland, 1999.
[7] M.R. Killingsworth, Labour supply. New York: Cambridge University
Press, 1983.
[8] P.J. Devereux, Changes in male labour supply and wages, Industrial and
Labour Relations Review, vol. 56, no.3, pp. 409-427, 2003.
[9] J. Mincer, Labor force participation of married women: A study of
labour supply. In Aspects of Labor Economics, Gregg, H., Lewis, H.G.,
Eds. Princeton NJ: Princeton University Press, 1962.
[10] C. Saget, The determinants of female labour supply in Hungary.
Economics Transition, vol. 7, no. 3, pp. 575-591, 1999.
[11] R. Morissette, and F. Hou, Does the labour supply of wives respond to
husbands- wages? Canadian evidence from micro data and grouped data,
Canadian Journal of Economics, vol. 41, no. 4, pp. 1186-1210, 2008.
[12] R.G. Penner, P. Perun, and E. Steurle, Legal and institutional
impediments to partial retirement and part-time work by older workers.
Washington D.C.: The Urban Institute, 2002.
[13] E. Wadensjo, Work and pension in Sweden. European Papers on the
New Welfare: The counter-ageing society. Milan: The Risk Institute,
2008, no. 9, pp.104-112.
[14] N.A. Maglad, Female labour supply in Sudan Nairobi: African
Economic Research Consortium, 1998, Special Paper 30.C. J. Kaufman,
Rocky Mountain Research Lab., Boulder, CO, private communication,
May 1995.
[15] D. Jolliffe, The impact of education in rural Ghana: Examining
household labour allocation and returns on and off the farm. Journal of
Developing Economics, vol. 73, pp. 287-314, 2004.
[16] O.M. Babikir and B.I. Babiker, The determinants of labour supply and
demand in irrigate agriculture: A case study of the Gezira Scheme in
Sudan. African Development Review, vol. 19, pp. 335-349, 2007.
[17] R. Gronau, The effect of children on the housewife-s value of time.
Journal of Political Economy, vol. 81, no. 2, pp. 168-199, 1973.
[18] M. Rosenzweig, and K.I. Wolpin, Life cycle labour supply and fertility:
Evidence from household models. Journal of Political Economy, vol.
88, pp. 328-348, 1980.
[19] T.P. Schults, Testing the neoclassical model of family labour supply and
fertility. Journal of Human Resources, vol. 25, pp. 599-634, 1990.
[20] R. Wong, and R. Levine, The effect of household structure on women-s
economic activity and fertility: Evidence from recent mother in urban
Mexico. Economic Development and Cultural Change, vol. 41, pp. 89-
102, 1992.
[21] M. Tienda, and J. Glass. Household structure and labour force
participation of Black, Hispanics and White mothers. Demography, vol.
22, pp. 381-394. 1985.
[22] T.P. Schultz, The Influence of fertility in labour supply of married
women: Simultaneous equation estimates, Research in Labour
Economics, vol. 2, pp.273-351 1978.
[23] E.L. Lehrer, The impact of children on married women-s labour supply:
Black-White differentials revisited. Journal of Human Resources, vol.
27, no. 3, pp. 422-444, 1992.
[24] P.S. Carlin and L. Flood, Do children affect the labour supply of
Swedish men? Time diary vs. survey data. Labour Economics, vol. 2,
pp.167-183, 1997.
[25] Rahmah Ismail & Fatimah Said, Women-s education and household
activities, in women and work, challenges in industrializing nations,
Maimunah Ismail and Aminah Ahmad, Eds. London: Asian Academic
Press, 1999.
[26] G. Borjas, The economics of immigration. Journal of Economic
Literature, vol. 32, pp.1667-1717, 1994.
[27] D. Card, Immigrant inflows, native outflows and the local labour market
impacts of higher immigration, Journal of Labor Economics, vol. 19, pp.
22-61, 2001.
[28] G. Borjas, The labour demand curve is downward sloping: Reexamining
the impact of immigration on the labour market,
Quarterly Journal of Economics, vol.118, pp.1335-1374, 2003.
[29] H. Bonin, Wage and employment effects of immigration to Germany:
Evidence from a skill group approach, IZA Discussion Paper No.1875,
2005.
[30] G.I. Ottaviano, and G. Peri, Immigration and national wages: clarifying
the theory and the empirics. NBER Working Paper 14188, National
Bureau of Economic Research, 2008.
[31] G. Peri, and C. Sparber, Task specialization, immigration, and wages.
American Economic Journal , 1(3), 135-69, 2009.
[32] S. Mocetti, and C. Porello, How does immigration affect native internal
mobility? New evidence from Italy. Regional Science and Urban
Economics, vol. 40, no. 6, pp. 427-439, 2010.
@article{"International Journal of Business, Human and Social Sciences:50234", author = "Poo Bee Tin and Rahmah Ismail and Norasmah Othman", title = "Does Labour Supply Respond to Globalisation? Malaysia Evidence from Micro Data", abstract = "Globalisation is a phenomenon that cannot be avoided.
As globalisation allowed free flow of inputs including labour, it may
affect job opportunities for the locals. Therefore, investigate the
determinants of labour supply is essential in understanding the
structure of labour market in the new era of globalization. The
objective of this article is to examine labour supply by taking into
account the globalisation effect. The study covers 3885 households in
Peninsular Malaysia who are chosen using stratified random
sampling. The labour supply model will be the basis for the analysis.
The basic labour supply determinants are own wage and non-labour
income. However, the extended labour supply model incorporates
other variables like spouse wage，number of children and
individuals characteristics like education level and age. Besides, the
globalization indicator will also be incorporated as another
independent variable.", keywords = "globalization, head of households, labour supply,
wage", volume = "5", number = "12", pages = "1777-7", }
