The Impact of Foreign Labor on Host Country Wages: The Experience of a Southern Host, Malaysia
AbstractThis paper investigates the impact of foreign labor on domestic manufacturing wages through a case study of Malaysia, a country where foreign labor has played a key role in manufacturing growth over the past two decades. The main focus of the paper is on an econometric analysis of the determinants of inter-industry variation in wage growth using a new panel dataset. The results suggest that wage growth is fundamentally embedded in the structure and performance of domestic manufacturing. There is evidence of a statistically significant negative impact of foreign labor on the growth of unskilled-worker wages, but the magnitude of the impact is rather small.
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Bibliographic InfoArticle provided by Elsevier in its journal World Development.
Volume (Year): 40 (2012)
Issue (Month): 8 ()
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Web page: http://www.elsevier.com/locate/worlddev
international labor migration; foreign workers; wages; Asia; Malaysia;
Other versions of this item:
- Prema-chandra Athukorala & Evelyn S Devadason, 2011. "The Impact of Foreign Labour on Host Country Wages: The Experience of a Southern Host, Malaysia," Departmental Working Papers 2011-03, The Australian National University, Arndt-Corden Department of Economics.
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
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