Globalisation and Labour Supply in Malaysia
Poo Bee Tin, Rahmah Ismail
Abstract: Globalisation opens the economy, moves goods, services, capital, labour and technology physically. In the context of labour market, the inflow of labour input is more relevant, because it gives implication on local labour especially in terms of job opportunities. Individual perception on the impact of globalization may change their attitude towards being working, but on the other hand, the labour supply may increase to cope with increasing cost of living due to globalization. Consequently, examine the determinants of labour supply is crucial 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 basic labour supply determinants are own wage and non-labour income. Though, the extended labour supply model includes other factors like spouse wage，number of children and individuals characteristics like education level and age. Likewise, the globalization indicator will also be integrated as another independent variable. The logistic regression is used to measure the functional relationship between the dependent variable and the independent variables. The results from the both logistic labour supply models demonstrate an expected sign for coefficient of age, which is negative and significant. Another interesting finding is that non-labour income is positive and significantly affects the labour supply, which means that non-labour income is one of the main concerns for the head of the household on the working decision. Globalisation is not significantly affecting the head of household labour supply, which mean that globalisation process is not a main concern of the head of household in securing their jobs.
[Poo Bee Tin, Rahmah Ismail. Globalisation and Labour Supply in Malaysia. Life Sci J 2013;10(1):1375-1385] (ISSN:1097-8135). http://www.lifesciencesite.com.
Keywords: Globalisation,; head of households; labour supply; wage; non-labour income.