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Does Labour Supply Respond to Globalisation? Malaysia Evidence from Micro Data

Authors: Norasmah Othman, Poo Bee Tin, Rahmah Ismail


Globalisation is a phenomenon that cannot be avoided. As globalisation allowed free flow of inputs including labour, it may affect job opportunities for the locals. Therefore, investigate the determinants of labour supply is essential in understanding the structure of labour market in the new era of globalization. The objective of this article is to examine labour supply by taking into account the globalisation effect. The study covers 3885 households in Peninsular Malaysia who are chosen using stratified random sampling. The labour supply model will be the basis for the analysis. The basic labour supply determinants are own wage and non-labour income. However, the extended labour supply model incorporates other variables like spouse wage´╝înumber of children and individuals characteristics like education level and age. Besides, the globalization indicator will also be incorporated as another independent variable.

Keywords: Globalization, wage, head of households, labour supply

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