The Immigrant-Native Wage Gap in Malaysia: The Preliminary Results
The Immigrant-Native Wage Gap in Malaysia: The Preliminary Results

Author(s): Borhan Sareya Abdullah, Alexandros Zangelidis, Ioannis Theodossiou
Subject(s): Geography, Regional studies, Labor relations, Migration Studies, Socio-Economic Research
Published by: Transnational Press London
Keywords: migration; Malaysia; natives; immigrants; wage gap; labour market; human capital;
Summary/Abstract: This paper focuses on the wage gap between native and immigrant workers in Malaysian labour market. This paper uses the Productivity and Investment Climate Survey (PICS) 2 for 2007 to explore the components of the immigrant-native wage gap. The Oaxaca decomposition analysis and quantile regression decomposition were applied in this study. By exploiting the PICS data, the result of this study shows that the immigrant has a lower human capital return on earnings compared to native. Another significant finding is that the wage gap between native and immigrant is mostly explained by the difference in the characteristics of the workers, while, the remaining were explained by the discriminatory effects.

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