The Impact of Foreign Labour on Host Country Wages: The Experience of a Southern Host, Malaysia
AbstractThis paper investigates the impact of foreign labour on domestic manufacturing wages through a case study of Malaysia, a country where foreign labour immigration 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 labour on the growth of unskilled-worker wages, but the magnitude of the impact is rather small.
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Bibliographic InfoPaper provided by The Australian National University, Arndt-Corden Department of Economics in its series Departmental Working Papers with number 2011-03.
Length: 25 pages
Date of creation: 2011
Date of revision:
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International labour migration; foreign workers; wages; Asia; Malaysia;
Other versions of this item:
- Athukorala, Prema-chandra & Devadason, Evelyn S., 2012. "The Impact of Foreign Labor on Host Country Wages: The Experience of a Southern Host, Malaysia," World Development, Elsevier, vol. 40(8), pages 1497-1510.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-04-02 (All new papers)
- NEP-DEV-2011-04-02 (Development)
- NEP-LAB-2011-04-02 (Labour Economics)
- NEP-MIG-2011-04-02 (Economics of Human Migration)
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