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Nai-peng Tey ; Faculty of Economics and Administration, University of Malaya Title : Personal income in Malaysia: distribution and differentials

Author

Listed:
  • Kim-Leng Goh

    (Faculty of Economics and Administration, University of Malaya)

  • Nai-peng Tey

    (Faculty of Economics and Administration, University of Malaya)

Abstract

Many studies on income disparities in Malaysia tend to use household data, focus on mean income, and ignore the distribution of income. The linkage to some of the characteristics of the individuals has not been examined. Using nationally representative data at the individual level, this paper shows empirically that the impact of demographic and socio-economic variables on income varies according to different income quantiles. The results of quantile regression suggest that education has a u-shaped effect on income among the graduates. Age and some occupational categories have stronger effects on income differentials at the top end of income distribution. On the other hand, the differentials attributed to gender, ethnicity and employment sector tend to decline as income level rises.

Suggested Citation

  • Kim-Leng Goh & Nai-peng Tey, 2018. "Nai-peng Tey ; Faculty of Economics and Administration, University of Malaya Title : Personal income in Malaysia: distribution and differentials," Economics Bulletin, AccessEcon, vol. 38(2), pages 973-982.
    • Handle: RePEc:ebl:ecbull:eb-17-00973
    as

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    References listed on IDEAS

    as
    1. Haji Mat Zin RAGAYAH, 2008. "Income Inequality in Malaysia," Asian Economic Policy Review, Japan Center for Economic Research, vol. 3(1), pages 114-132, June.
    2. Schafgans, Marcia M. A., 2000. "Gender wage differences in Malaysia: parametric and semiparametric estimation," Journal of Development Economics, Elsevier, vol. 63(2), pages 351-378, December.
    3. Branko Milanovic, 2006. "Inequality and Determinants of Earnings in Malaysia, 1984–1997," Asian Economic Journal, East Asian Economic Association, vol. 20(2), pages 191-216, June.
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    More about this item

    Keywords

    Non-normality; Personal income; Quantile regression;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J1 - Labor and Demographic Economics - - Demographic Economics

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