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Who gain and lose from the minimum wage policy?


Citation

Saari, Mohd Yusof and Hassan, Azman and Said, Rusmawati (2013) Who gain and lose from the minimum wage policy? Jurnal Ekonomi Malaysia, 47 (2). pp. 173-182. ISSN 0126-1962

Abstract

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.


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Additional Metadata

Item Type: Article
Divisions: Faculty of Economics and Management
Publisher: Penerbit Universiti Kebangsaan Malaysia
Keywords: Minimum wage; Input-output; Income distribution; Ethnic groups
Depositing User: Nabilah Mustapa
Date Deposited: 04 Aug 2015 08:21
Last Modified: 17 Feb 2016 01:27
URI: http://psasir.upm.edu.my/id/eprint/28359
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