The Educational Mismatch of Native and Immigrant Workers in Malaysia

International Journal of Economics and Management Studies

© 2019 by SSRG - IJEMS Journal

Volume 6 Issue 9

Year of Publication : 2019

Authors : Borhan Abdullah

10.14445/23939125/IJEMS-V6I9P112

How to Cite?

Borhan Abdullah, "The Educational Mismatch of Native and Immigrant Workers in Malaysia," SSRG International Journal of Economics and Management Studies, vol. 6,  no. 9, pp. 102-108, 2019. Crossref, https://doi.org/10.14445/23939125/IJEMS-V6I9P112

Abstract:

This paper utilises Productivity and Investment Climate Survey (PICS) 2007 data to explore the educational mismatch of native and immigrant workers in Malaysia and the effect of educational mismatch on wages and wage differentials between native and immigrant workers. This paper employs realised method with mean approach to identify the educational-occupational mismatch. Findings show that the incidence on undereducation gives workers an advantage in terms of earnings, while overeducation has a negative impact on worker’s earnings. Besides, this paper reveals that native will earn higher wages for being undereducated and as expected, the immigrant is panelised more than the native for being overeducated. Thus, this paper suggest that the educational mismatch partly explains the wage differentials between native and immigrant workers in Malaysian labour market.

Keywords:

Educational mismatch, native-immigrant wage differentials, migration

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