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Ethnicity And Earnings In Malaysia

Author

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  • Gallup, John

Abstract

This paper considers the evolution of male earnings of the main ethnic groups in Malaysia. The relative earnings of the ethnic groups are especially at issue because of the ambitious anti-poverty and affirmative action programs that make up the New Economic Policy, inaugurated after bloody race riots in 1969. Data from the second Malaysian Family Life Survey (MFLS2), an important data source for recent studies of Malaysia, show that male Malay earnings steadily fell behind male Chinese earnings over the past thirty years. However, this is not consistent with the changes in large cross-sectional household surveys over the same time period. An explanation that could reconcile the two kinds of data is strong cohort effects, since the MFLS2 life history data has a different age and cohort structure than the cross-sectional data. The cohort hypothesis is rejected, which indicates there is probably recall bias in the reported work histories that varies with the ethnicity of the survey respondent.

Suggested Citation

  • Gallup, John, 1997. "Ethnicity And Earnings In Malaysia," Harvard Institute for International Development (HIID) Papers 294413, Harvard University, Kennedy School of Government.
    • Handle: RePEc:ags:hariid:294413
    DOI: 10.22004/ag.econ.294413
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    Cited by:

    1. Jessica Gordon Nembhard & William Darity, 2000. "Racial and Ethnic Economic Inequality: The International Record," American Economic Review, American Economic Association, vol. 90(2), pages 308-311, May.
    2. Ismail, Ramlee, 2007. "The Impact of Schooling Reform on Returns to Education in Malaysia," MPRA Paper 15021, University Library of Munich, Germany, revised 29 Jan 2008.
    3. Kenayathulla, Husaina Banu, 2013. "Higher levels of education for higher private returns: New evidence from Malaysia," International Journal of Educational Development, Elsevier, vol. 33(4), pages 380-393.
    4. 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.
    5. Shahiri, Hazrul Izuan, 2012. "An Analysis of the Reduction of the Ethnic Economic Gap in Malaysia under the New Economy Policy: Evidence from Ethnic Occupation Segregation and Wage Differential," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 46(2), pages 127-139.

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