IDEAS home Printed from https://ideas.repec.org/a/bla/asiaec/v28y2014i3p259-278.html
   My bibliography  Save this article

Income Distribution across Ethnic Groups in Malaysia: Results from a New Social Accounting Matrix

Author

Listed:
  • M. Yusof Saari
  • Erik Dietzenbacher
  • Bart Los

Abstract

type="main"> A new social accounting matrix is constructed for Malaysia for the year 2000 to analyze sources of income inequality among ethnic groups in Malaysia. The analysis reveals that income inequality can be decomposed into the interaction of: (i) hourly wages; (ii) working hours per week; and (iii) number of dependents per household. The results of the analysis suggest that occupational differences are the main factor contributing to wage inequality in Malaysia. Ethnic Malays tend to work in low-wage industries while ethnic Chinese and Indians are more likely to work in higher-wage industries.

Suggested Citation

  • M. Yusof Saari & Erik Dietzenbacher & Bart Los, 2014. "Income Distribution across Ethnic Groups in Malaysia: Results from a New Social Accounting Matrix," Asian Economic Journal, East Asian Economic Association, vol. 28(3), pages 259-278, September.
    • Handle: RePEc:bla:asiaec:v:28:y:2014:i:3:p:259-278
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/asej.12036
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David W. Roland‐Holst & Ferran Sancho, 1992. "Relative Income Determination In The United States: A Social Accounting Perspective," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 38(3), pages 311-327, September.
    2. Arief Anshory Yusuf, 2006. "Constructing Indonesian Social Accounting Matrix for Distributional Analysis in the CGE Modelling Framework," Working Papers in Economics and Development Studies (WoPEDS) 200604, Department of Economics, Padjadjaran University, revised Nov 2006.
    3. Pieters, Janneke, 2010. "Growth and Inequality in India: Analysis of an Extended Social Accounting Matrix," World Development, Elsevier, vol. 38(3), pages 270-281, March.
    4. Montalvo, Jose G. & Reynal-Querol, Marta, 2005. "Ethnic diversity and economic development," Journal of Development Economics, Elsevier, vol. 76(2), pages 293-323, April.
    5. Fum, Ruikang Marcus & Hodler, Roland, 2010. "Natural resources and income inequality: The role of ethnic divisions," Economics Letters, Elsevier, vol. 107(3), pages 360-363, June.
    6. Jeffrey Round, 2003. "Constructing SAMs for Development Policy Analysis: Lessons Learned and Challenges Ahead," Economic Systems Research, Taylor & Francis Journals, vol. 15(2), pages 161-183.
    7. Sudhir Anand, 1977. "Aspects Of Poverty In Malaysia," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 23(1), pages 1-16, March.
    8. Tarp, Finn & Roland-Holst, David & Rand, John, 2003. "Economic structure and development in an emergent Asian economy: evidence from a social accounting matrix for vietnam," Journal of Asian Economics, Elsevier, vol. 13(6), pages 847-871, January.
    9. Finn Tarp & David Roland-Holst & John Rand, 2002. "Trade and Income Growth in Vietnam: Estimates from a New Social Accounting Matrix," Economic Systems Research, Taylor & Francis Journals, vol. 14(2), pages 157-184, June.
    10. Agostini, Claudio A. & Brown, Philip H. & Roman, Andrei C., 2010. "Poverty and Inequality Among Ethnic Groups in Chile," World Development, Elsevier, vol. 38(7), pages 1036-1046, July.
    11. William Easterly & Ross Levine, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1203-1250.
    12. Roland-Holst, David W & Sancho, Ferran, 1992. "Relative Income Determination in the United States: A Social Accounting Perspective," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 38(3), pages 311-327, September.
    13. Ishak Shari, 2000. "Economic Growth And Income Inequality In Malaysia, 1971–95," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 5(1-2), pages 112-124.
    14. Pyatt, Graham & Round, Jeffrey I, 1977. "Social Accounting Matrices for Development Planning," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 23(4), pages 339-364, December.
    15. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 681-712.
    16. Andres Blancas, 2006. "Interinstitutional linkage analysis: a social accounting matrix multiplier approach for the Mexican economy," Economic Systems Research, Taylor & Francis Journals, vol. 18(1), pages 29-59.
    17. Thorbecke, Erik, 1991. "Adjustment, growth and income distribution in Indonesia," World Development, Elsevier, vol. 19(11), pages 1595-1614, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Saari, M. Yusof & Rahman, M. Affan Abdul & Hassan, Azman & Habibullah, Muzafar Shah, 2016. "Estimating the impact of minimum wages on poverty across ethnic groups in Malaysia," Economic Modelling, Elsevier, vol. 54(C), pages 490-502.
    2. Hasanul Banna & Muhammad Mehedi Masud & Shamsulbahriah K. A. Rodrigo, 2020. "How does economic growth impact on income inequality across ethnic groups in Malaysia?," Poverty & Public Policy, John Wiley & Sons, vol. 12(4), pages 397-420, December.
    3. Mohd Nor, Norma Azuli & Mohd Salleh, Norlida Hanim & Falatehan, A Faroby, 2021. "The Effect of Tourism Expenditure on the Economy: A New Evidence," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 55(3), pages 23-34.
    4. Saari, M. Yusof & Dietzenbacher, Erik & Los, Bart, 2016. "The impacts of petroleum price fluctuations on income distribution across ethnic groups in Malaysia," Ecological Economics, Elsevier, vol. 130(C), pages 25-36.
    5. Lau, Patricia Yin Yin & Tong, Jane L.Y. Terpstra & Lien, Bella Ya-Hui & Hsu, Yen-Chen & Chong, Chooi Ling, 2017. "Ethical work climate, employee commitment and proactive customer service performance: Test of the mediating effects of organizational politics," Journal of Retailing and Consumer Services, Elsevier, vol. 35(C), pages 20-26.
    6. Saari, M. Yusof & Dietzenbacher, Erik & Los, Bart, 2015. "Sources of Income Growth and Inequality Across Ethnic Groups in Malaysia, 1970–2000," World Development, Elsevier, vol. 76(C), pages 311-328.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Saari, M. Yusof & Dietzenbacher, Erik & Los, Bart, 2014. "Production interdependencies and poverty reduction across ethnic groups in Malaysia," Economic Modelling, Elsevier, vol. 42(C), pages 146-158.
    2. Saari, M. Yusof & Dietzenbacher, Erik & Los, Bart, 2015. "Sources of Income Growth and Inequality Across Ethnic Groups in Malaysia, 1970–2000," World Development, Elsevier, vol. 76(C), pages 311-328.
    3. Saari, M. Yusof & Rahman, M. Affan Abdul & Hassan, Azman & Habibullah, Muzafar Shah, 2016. "Estimating the impact of minimum wages on poverty across ethnic groups in Malaysia," Economic Modelling, Elsevier, vol. 54(C), pages 490-502.
    4. Temel, Tugrul, 2011. "Family planning, growth and income distribution in Rwanda: SAM multiplier and graph-theoretic path analysis," MPRA Paper 31394, University Library of Munich, Germany.
    5. Parcero, Osiris J. & Papyrakis, Elissaios, 2016. "Income inequality and the oil resource curse," Resource and Energy Economics, Elsevier, vol. 45(C), pages 159-177.
    6. Sanjaya Acharya, 2007. "Flow Structure in Nepal and the Benefit to the Poor," Economics Bulletin, AccessEcon, vol. 15(17), pages 1-14.
    7. Gerring, John & Thacker, Strom C. & Lu, Yuan & Huang, Wei, 2015. "Does Diversity Impair Human Development? A Multi-Level Test of the Diversity Debit Hypothesis," World Development, Elsevier, vol. 66(C), pages 166-188.
    8. Eiji Yamamura & Inyong Shin, 2009. "Effects of Income Inequality on Growth through Efficiency Improvement and Capital Accumulation," International Economic Journal, Taylor & Francis Journals, vol. 23(2), pages 237-258.
    9. Merima Ali & Odd-Helge Fjeldstad & Boqian Jiang & Abdulaziz B Shifa, 2019. "Colonial Legacy, State-building and the Salience of Ethnicity in Sub-Saharan Africa," The Economic Journal, Royal Economic Society, vol. 129(619), pages 1048-1081.
    10. Mavridis, Dimitris, 2015. "Ethnic Diversity and Social Capital in Indonesia," World Development, Elsevier, vol. 67(C), pages 376-395.
    11. Alexandre Repkine, 2014. "Ethnic Diversity, Political Stability and Productive Efficiency: Empirical Evidence from the African Countries," South African Journal of Economics, Economic Society of South Africa, vol. 82(3), pages 315-333, September.
    12. Alvaro Gallardo & Cristian Mardones, 2013. "Environmentally extended social accounting matrix for Chile," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 15(4), pages 1099-1127, August.
    13. Imam Patrick Amir & Kpodar Kangni, 2021. "Does an Inclusive Citizenship Law Promote Economic Development?," Review of Law & Economics, De Gruyter, vol. 17(1), pages 35-69, March.
    14. Andrés Rodríguez-Pose & Viola Berlepsch, 2019. "Does Population Diversity Matter for Economic Development in the Very Long Term? Historic Migration, Diversity and County Wealth in the US," European Journal of Population, Springer;European Association for Population Studies, vol. 35(5), pages 873-911, December.
    15. Zenou, Yves & Jellal, Mohamed, 2005. "Ethnic Diversity, Market Structure and Risk Sharing in Developing Countries," CEPR Discussion Papers 5366, C.E.P.R. Discussion Papers.
    16. Eiji Yamamura & Inyong Shin, 2013. "Decomposition of Ethnic Heterogeneity on Growth," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 55(1), pages 59-75, March.
    17. repec:zbw:hohpro:352 is not listed on IDEAS
    18. Montalvo, Jose G. & Reynal-Querol, Marta, 2007. "Ethnic polarization and the duration of civil wars," Policy Research Working Paper Series 4192, The World Bank.
    19. Eva M. Buitrago & M. Ángeles Caraballo, 2022. "Measuring social diversity in economic literature: An overview for cross‐country studies," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 880-934, September.
    20. Günther G. Schulze & Bambang Suharnoko Sjahrir & Nikita Zakharov, 2016. "Corruption in Russia," Journal of Law and Economics, University of Chicago Press, vol. 59(1), pages 135-171.
    21. Paolo Masella, 2013. "National identity and ethnic diversity," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(2), pages 437-454, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:asiaec:v:28:y:2014:i:3:p:259-278. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/eaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.