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The Determinants Of Individual Unemployment Duration: The Case Of Malaysian Graduates

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  • Hock-Eam Lim

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    (Economics Building, Universiti Utara Malaysia)

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    Abstract

    This paper estimates determinants of individual unemployment duration of Malaysian graduates. Estimation result suggests that lack of proficiency in English, a mismatch between the type of graduation degree and the requirements for the available jobs in the labor market, family background, state of happiness in overall life, self-expectation on one’s employability and some socio-demographic characteristics (such as ethnicity) are significant determinants of graduate unemployment duration in Malaysia. Specifically, the ‘hypothesis of selection’ in literature of happiness studies is supported; non-English languages proficiency (including Chinese) has no significant impact; and it is imperative to have a realistic self-expectation on one’s employability.

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    Bibliographic Info

    Article provided by Global Research Agency in its journal Journal of Global Management.

    Volume (Year): 2 (2011)
    Issue (Month): 2 (July)
    Pages: 184-203

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    Handle: RePEc:grg:03mngt:v:2:y:2011:i:2:p:184-203

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    Web page: http://www.globalresearch.com.my/journal.htm

    Related research

    Keywords: Unemployment duration; Malaysian graduates; proportional hazard model; hypothesis of selection;

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    1. Holmlund, Bertil, 1998. " Unemployment Insurance in Theory and Practice," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(1), pages 113-41, March.
    2. Nick Carroll, 2004. "Explaining Unemployment Duration in Australia," CEPR Discussion Papers 483, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    3. Louise Grogan & Gerard J. van den Berg, 2001. "The duration of unemployment in Russia," Journal of Population Economics, Springer, vol. 14(3), pages 549-568.
    4. Edin, Per-Anders, 1989. " Unemployment Duration and Competing Risks: Evidence from Sweden," Scandinavian Journal of Economics, Wiley Blackwell, vol. 91(4), pages 639-53.
    5. Lancaster, Tony, 1979. "Econometric Methods for the Duration of Unemployment," Econometrica, Econometric Society, vol. 47(4), pages 939-56, July.
    6. Aysit Tansel & Mehmet Tasci, 2004. "Determinants of Unemployment Duration for Men and Women in Turkey," Working Papers 2004/6, Turkish Economic Association.
    7. Knut Roed & Tao Zhang, 2003. "Does Unemployment Compensation Affect Unemployment Duration?," Economic Journal, Royal Economic Society, vol. 113(484), pages 190-206, January.
    8. Nickell, Stephen J, 1979. "Estimating the Probability of Leaving Unemployment," Econometrica, Econometric Society, vol. 47(5), pages 1249-66, September.
    9. Paul M Romer, 1999. "Endogenous Technological Change," Levine's Working Paper Archive 2135, David K. Levine.
    10. Hock-Eam Lim, 2007. "Estimating The Employment Performance Indicator: The Case Of Universiti Utara Malaysia Graduates," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 52(01), pages 73-91.
    11. Dawkins, Casey J. & Shen, Qing & Sanchez, Thomas W., 2005. "Race, space, and unemployment duration," Journal of Urban Economics, Elsevier, vol. 58(1), pages 91-113, July.
    12. Michele Pellizzari, 2004. "Unemployment Duration and the Interactions Between Unemployment Insurance and Social Assistance," Working Papers 272, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    13. Kupets, Olga, 2006. "Determinants of unemployment duration in Ukraine," Journal of Comparative Economics, Elsevier, vol. 34(2), pages 228-247, June.
    14. Roed, Knut & Zhang, Tao, 2005. "Unemployment duration and economic incentives--a quasi random-assignment approach," European Economic Review, Elsevier, vol. 49(7), pages 1799-1825, October.
    15. Hwei-Lin Chuang, 1999. "Estimating the determinants of the unemployment duration for college graduates in Taiwan," Applied Economics Letters, Taylor & Francis Journals, vol. 6(10), pages 677-681.
    16. Narendranathan, W. & Stewart, M.B., 1989. "Modelling The Probability Of Leaving Unemployment: Competing Risks Models With Flexible Baseline Hazards," The Warwick Economics Research Paper Series (TWERPS) 331, University of Warwick, Department of Economics.
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