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Sources of Income Growth and Inequality Across Ethnic Groups in Malaysia, 1970–2000

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  • Saari, M. Yusof
  • Dietzenbacher, Erik
  • Los, Bart

Abstract

This paper examines the sources of income growth for major ethnic groups in Malaysia. An input–output structural decomposition analysis is extended and applied to the social accounting matrices of 1970 and 2000. The results indicate that the expansion of exports and the changes in the compensation of labor and capital inputs are the main determinants for the income changes. The effects differ largely between rural and urban areas, between skilled and unskilled workers, and between the major ethnic groups. The combination of these two determinants, however, is a dominant factor in explaining the increase in income inequality in Malaysia.

Suggested Citation

  • Saari, M. Yusof & Dietzenbacher, Erik & Los, Bart, 2015. "Sources of Income Growth and Inequality Across Ethnic Groups in Malaysia, 1970–2000," World Development, Elsevier, vol. 76(C), pages 311-328.
  • Handle: RePEc:eee:wdevel:v:76:y:2015:i:c:p:311-328
    DOI: 10.1016/j.worlddev.2015.07.015
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    Cited by:

    1. Adnen Ben Nasr & Mehmet Balcilar & Rangan Gupta & Seyi Saint Akadiri, 2018. "Asymmetric Effects of Inequality on Per Capita Real GDP of the United States," Working Papers 201820, University of Pretoria, Department of Economics.
    2. repec:spr:soinre:v:142:y:2019:i:2:d:10.1007_s11205-018-1940-1 is not listed on IDEAS
    3. repec:khe:scajes:v:4:y:2018:i:3:p:76-86 is not listed on IDEAS
    4. Adnen Ben Nasr & Mehmet Balcilar & Seyi Saint Akadiri & Rangan Gupta, 2019. "Kuznets Curve for the US: A Reconsideration Using Cosummability," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(2), pages 827-843, April.
    5. Müller, Benjamin & Ragoussis, Alexandros, 2016. "Minorities and trade: what do we know, and how can policymakers take it into account?," Discussion Papers 11/2016, German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE).
    6. Saari, M. Yusof & Dietzenbacher, Erik & Los, Bart, 2016. "The impacts of petroleum price fluctuations on income distribution across ethnic groups in Malaysia," Ecological Economics, Elsevier, vol. 130(C), pages 25-36.

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