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Ethnic wage differences in Malaysia: parametric and semiparametric estimation of the Chinese-Malay wage gap

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  • Marcia M. A. Schafgans

    (London School of Economics and Political Science, Department of Economics, Houghton Street, London WC2A 2AE, UK)

Abstract

Parametric and semiparametric estimated wage equations, which correct for sample selection bias, are used to assess the returns to eduction and extent of ethnic 'discrimination' in (Peninsular) Malaysia. In particular, this paper focuses on the level of 'discrimination' between Malay and Chinese men and women. The Andrews-Schafgans (1998) estimator is used to estimate consistently the wage equation intercept in the semiparametric case. The results show that the Chinese-Malay offered wage difference typically is larger in absolute value among women than men. The strong 'discrimination' favouring Chinese over Malays observed using the parametric results is negated by the semiparametric results. © 1998 John Wiley & Sons, Ltd.

Suggested Citation

  • Marcia M. A. Schafgans, 1998. "Ethnic wage differences in Malaysia: parametric and semiparametric estimation of the Chinese-Malay wage gap," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 13(5), pages 481-504.
    • Handle: RePEc:jae:japmet:v:13:y:1998:i:5:p:481-504
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    Citations

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    Cited by:

    1. Murat G. Kırdar, 2009. "Explaining Ethnic Disparities in School Enrollment in Turkey," Economic Development and Cultural Change, University of Chicago Press, vol. 57(2), pages 297-333, January.
    2. Fábio Veras Soares, 2004. "Do Informal Workers Queue For Formal Jobs in Brazil ?," Discussion Papers 1021, Instituto de Pesquisa Econômica Aplicada - IPEA.
    3. Martin Huber & Giovanni Mellace, 2014. "Testing exclusion restrictions and additive separability in sample selection models," Empirical Economics, Springer, vol. 47(1), pages 75-92, August.
    4. Amin, Shahina, 2004. "Ethnic differences and married women's employment in Malaysia: do government policies matter?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 33(3), pages 291-306, July.
    5. Michael Clemens & Claudio Montenegro & Lant Pritchett, 2008. "The Place Premium: Wage Differences for Identical Workers across the U.S. Border," Working Papers 148, Center for Global Development.
    6. Kazianga, Harounan, 2004. "Schooling Returns for Wage Earners in Burkina Faso: Evidence from the 1994 and 1998 National Surveys," Center Discussion Papers 28388, Yale University, Economic Growth Center.
    7. Lewbel, Arthur & Yang, Thomas Tao, 2016. "Identifying the average treatment effect in ordered treatment models without unconfoundedness," Journal of Econometrics, Elsevier, vol. 195(1), pages 1-22.
    8. Huber, Martin & Mellace, Giovanni, 2011. "Testing instrument validity in sample selection models," Economics Working Paper Series 1145, University of St. Gallen, School of Economics and Political Science.
    9. Bart Hobijn & Carlos A. Medina-Durango, 2000. "Is Discrimination Due to a Coordination Failure?," Econometric Society World Congress 2000 Contributed Papers 1758, Econometric Society.

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