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Who Gain and Lose from the Minimum Wage Policy?

Author

Listed:
  • Saari, Mohd Yusof

    (Department of Economics Faculty of Economics and Management Universiti Putra Malaysia)

  • Hassan, Azman

    (Department of Economics Faculty of Economics and Management Universiti Putra Malaysia)

  • Said, Rusmawati

    (Department of Economics Faculty of Economics and Management Universiti Putra Malaysia)

Abstract

Jurnal Ekonomi Malaysia 47(2) 2013 173 - 182 Who Gain and Lose from the Minimum Wage Policy? (Siapa Untung dan Rugi daripada Dasar Upah Minimum?) Mohd Yusof Saari Azman Hassan Rusmawati Said Faculty of Economics and Management Universiti Putra Malaysia AABSTRACT This study examines the effectiveness of the minimum wage as a mechanism for income redistribution among major ethnic groups in Malaysia. Taking into consideration the benefits and costs of minimum wage, the results show that the wage policy potentially boosts the incomes of ethnic Indians and ethnic Malays, whereas the wage policy marginally affects ethnic Chinese. The estimates also do not provide strong support for the notion that minimum wage legislation in Malaysia is likely to be an effective policy for income redistribution. The effectiveness of the minimum wage legislation is constrained by its limitation to account for informal sector workers.

Suggested Citation

  • Saari, Mohd Yusof & Hassan, Azman & Said, Rusmawati, 2013. "Who Gain and Lose from the Minimum Wage Policy?," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 47(2), pages 173-182.
    • Handle: RePEc:ukm:jlekon:v:47:y:2013:i:2:p:173-182
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    References listed on IDEAS

    as
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