Personal income in Malaysia: Distribution and differentials

Many studies on income disparities in Malaysia tend to use household data, focus on mean income, and ignore the distribution of income. The linkage to some of the characteristics of the individuals has not been examined. Using nationally representative data at the individual level, this paper shows...

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Main Authors: Goh, Kim Leng, Tey, Nai Peng
Format: Article
Published: Economics Bulletin 2018
Subjects:
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author Goh, Kim Leng
Tey, Nai Peng
author_facet Goh, Kim Leng
Tey, Nai Peng
author_sort Goh, Kim Leng
collection UM
description Many studies on income disparities in Malaysia tend to use household data, focus on mean income, and ignore the distribution of income. The linkage to some of the characteristics of the individuals has not been examined. Using nationally representative data at the individual level, this paper shows empirically that the impact of demographic and socio-economic variables on income varies according to different income quantiles. The results of quantile regression suggest that education has a u-shaped effect on income among the graduates. Age and some occupational categories have stronger effects on income differentials at the top end of income distribution. On the other hand, the differentials attributed to gender, ethnicity and employment sector tend to decline as income level rises.
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spelling um.eprints-220172019-08-21T07:11:49Z http://eprints.um.edu.my/22017/ Personal income in Malaysia: Distribution and differentials Goh, Kim Leng Tey, Nai Peng HC Economic History and Conditions HG Finance Many studies on income disparities in Malaysia tend to use household data, focus on mean income, and ignore the distribution of income. The linkage to some of the characteristics of the individuals has not been examined. Using nationally representative data at the individual level, this paper shows empirically that the impact of demographic and socio-economic variables on income varies according to different income quantiles. The results of quantile regression suggest that education has a u-shaped effect on income among the graduates. Age and some occupational categories have stronger effects on income differentials at the top end of income distribution. On the other hand, the differentials attributed to gender, ethnicity and employment sector tend to decline as income level rises. Economics Bulletin 2018 Article PeerReviewed Goh, Kim Leng and Tey, Nai Peng (2018) Personal income in Malaysia: Distribution and differentials. Economics Bulletin, 38 (2). pp. 973-982. ISSN 1545-2921, http://www.accessecon.com/Pubs/EB/2018/Volume38/EB-18-V38-I2-P94.pdf
spellingShingle HC Economic History and Conditions
HG Finance
Goh, Kim Leng
Tey, Nai Peng
Personal income in Malaysia: Distribution and differentials
title Personal income in Malaysia: Distribution and differentials
title_full Personal income in Malaysia: Distribution and differentials
title_fullStr Personal income in Malaysia: Distribution and differentials
title_full_unstemmed Personal income in Malaysia: Distribution and differentials
title_short Personal income in Malaysia: Distribution and differentials
title_sort personal income in malaysia distribution and differentials
topic HC Economic History and Conditions
HG Finance
work_keys_str_mv AT gohkimleng personalincomeinmalaysiadistributionanddifferentials
AT teynaipeng personalincomeinmalaysiadistributionanddifferentials