Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 31103
Does Labour Supply Respond to Globalisation? Malaysia Evidence from Micro Data

Authors: Poo Bee Tin, Rahmah Ismail, Norasmah Othman


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

Digital Object Identifier (DOI):

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 2316


[1] Labour force survey report, Department of Statistics, 2010.
[2] P. Douglas, Theory of wages. New York: Macmillan, 1934.
[3] M. Evers, R.D. Moojj, and D.V. Vuuren, The wage elasticity of labour supply: A synthesis of empirical estimates, De Economist, vol.156, pp. 25-43, 2008.
[4] W. M. Boal and M. R. Ransom, Monopsony in the labor market. Journal of Economic Literature, vol. 35, pp.86-112, 1997.lication)," IEEE Trans. Antennas Propagat., to be published.
[5] A. Manning, Monosony in motion: Imperfect competition in labour market. Princeton, NJ: Princeton University Press, 2003.
[6] R. Blundell, and T. Macurddy, Labour supply: A review of alternative approaches, in O. Ashenfelter and D. Card (Eds), Handbook of Labor Economics, vol. 3A, Ch 27, Amsterdam, North Holland, 1999.
[7] M.R. Killingsworth, Labour supply. New York: Cambridge University Press, 1983.
[8] P.J. Devereux, Changes in male labour supply and wages, Industrial and Labour Relations Review, vol. 56, no.3, pp. 409-427, 2003.
[9] J. Mincer, Labor force participation of married women: A study of labour supply. In Aspects of Labor Economics, Gregg, H., Lewis, H.G., Eds. Princeton NJ: Princeton University Press, 1962.
[10] C. Saget, The determinants of female labour supply in Hungary. Economics Transition, vol. 7, no. 3, pp. 575-591, 1999.
[11] R. Morissette, and F. Hou, Does the labour supply of wives respond to husbands- wages? Canadian evidence from micro data and grouped data, Canadian Journal of Economics, vol. 41, no. 4, pp. 1186-1210, 2008.
[12] R.G. Penner, P. Perun, and E. Steurle, Legal and institutional impediments to partial retirement and part-time work by older workers. Washington D.C.: The Urban Institute, 2002.
[13] E. Wadensjo, Work and pension in Sweden. European Papers on the New Welfare: The counter-ageing society. Milan: The Risk Institute, 2008, no. 9, pp.104-112.
[14] N.A. Maglad, Female labour supply in Sudan Nairobi: African Economic Research Consortium, 1998, Special Paper 30.C. J. Kaufman, Rocky Mountain Research Lab., Boulder, CO, private communication, May 1995.
[15] D. Jolliffe, The impact of education in rural Ghana: Examining household labour allocation and returns on and off the farm. Journal of Developing Economics, vol. 73, pp. 287-314, 2004.
[16] O.M. Babikir and B.I. Babiker, The determinants of labour supply and demand in irrigate agriculture: A case study of the Gezira Scheme in Sudan. African Development Review, vol. 19, pp. 335-349, 2007.
[17] R. Gronau, The effect of children on the housewife-s value of time. Journal of Political Economy, vol. 81, no. 2, pp. 168-199, 1973.
[18] M. Rosenzweig, and K.I. Wolpin, Life cycle labour supply and fertility: Evidence from household models. Journal of Political Economy, vol. 88, pp. 328-348, 1980.
[19] T.P. Schults, Testing the neoclassical model of family labour supply and fertility. Journal of Human Resources, vol. 25, pp. 599-634, 1990.
[20] R. Wong, and R. Levine, The effect of household structure on women-s economic activity and fertility: Evidence from recent mother in urban Mexico. Economic Development and Cultural Change, vol. 41, pp. 89- 102, 1992.
[21] M. Tienda, and J. Glass. Household structure and labour force participation of Black, Hispanics and White mothers. Demography, vol. 22, pp. 381-394. 1985.
[22] T.P. Schultz, The Influence of fertility in labour supply of married women: Simultaneous equation estimates, Research in Labour Economics, vol. 2, pp.273-351 1978.
[23] E.L. Lehrer, The impact of children on married women-s labour supply: Black-White differentials revisited. Journal of Human Resources, vol. 27, no. 3, pp. 422-444, 1992.
[24] P.S. Carlin and L. Flood, Do children affect the labour supply of Swedish men? Time diary vs. survey data. Labour Economics, vol. 2, pp.167-183, 1997.
[25] Rahmah Ismail & Fatimah Said, Women-s education and household activities, in women and work, challenges in industrializing nations, Maimunah Ismail and Aminah Ahmad, Eds. London: Asian Academic Press, 1999.
[26] G. Borjas, The economics of immigration. Journal of Economic Literature, vol. 32, pp.1667-1717, 1994.
[27] D. Card, Immigrant inflows, native outflows and the local labour market impacts of higher immigration, Journal of Labor Economics, vol. 19, pp. 22-61, 2001.
[28] G. Borjas, The labour demand curve is downward sloping: Reexamining the impact of immigration on the labour market, Quarterly Journal of Economics, vol.118, pp.1335-1374, 2003.
[29] H. Bonin, Wage and employment effects of immigration to Germany: Evidence from a skill group approach, IZA Discussion Paper No.1875, 2005.
[30] G.I. Ottaviano, and G. Peri, Immigration and national wages: clarifying the theory and the empirics. NBER Working Paper 14188, National Bureau of Economic Research, 2008.
[31] G. Peri, and C. Sparber, Task specialization, immigration, and wages. American Economic Journal , 1(3), 135-69, 2009.
[32] S. Mocetti, and C. Porello, How does immigration affect native internal mobility? New evidence from Italy. Regional Science and Urban Economics, vol. 40, no. 6, pp. 427-439, 2010.