Malaysia`s labour force participation in rural and urban areas

In Malaysia, transformation of economic structure from agricultural sector to manufacturing and services sector has led to urbanization process in which individual migrates from rural to urban areas for better jobs opportunity and higher wages. This inclination of movement has led to a reduction in...

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Main Authors: Mohd Nor, Nor Amna A’liah, Said, Rusmawati
Format: Article
Published: Asian Economic and Social Society 2014
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author Mohd Nor, Nor Amna A’liah
Said, Rusmawati
author_facet Mohd Nor, Nor Amna A’liah
Said, Rusmawati
author_sort Mohd Nor, Nor Amna A’liah
collection UPM
description In Malaysia, transformation of economic structure from agricultural sector to manufacturing and services sector has led to urbanization process in which individual migrates from rural to urban areas for better jobs opportunity and higher wages. This inclination of movement has led to a reduction in labour absorption and expands the labour force disparities between urban and rural areas. In light of these disparities, this study used Labour Force Survey (LFS) data from Malaysia Department of Statistic to examine the determinants and changes between rural and urban labour force participation in Malaysia. The results of logistic regression models demonstrate that age group 25-34 years are the main determinant of rural and urban labour force participation. However, the probability of household in urban areas participate in labour market are higher than rural areas. Educations in urban areas are more significant compared to rural areas. A non-linear decomposition exhibits that the observed rural and urban differentials are attributable to differences in endowment (explained variables).
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spelling upm.eprints-344272015-12-15T03:02:37Z http://psasir.upm.edu.my/id/eprint/34427/ Malaysia`s labour force participation in rural and urban areas Mohd Nor, Nor Amna A’liah Said, Rusmawati In Malaysia, transformation of economic structure from agricultural sector to manufacturing and services sector has led to urbanization process in which individual migrates from rural to urban areas for better jobs opportunity and higher wages. This inclination of movement has led to a reduction in labour absorption and expands the labour force disparities between urban and rural areas. In light of these disparities, this study used Labour Force Survey (LFS) data from Malaysia Department of Statistic to examine the determinants and changes between rural and urban labour force participation in Malaysia. The results of logistic regression models demonstrate that age group 25-34 years are the main determinant of rural and urban labour force participation. However, the probability of household in urban areas participate in labour market are higher than rural areas. Educations in urban areas are more significant compared to rural areas. A non-linear decomposition exhibits that the observed rural and urban differentials are attributable to differences in endowment (explained variables). Asian Economic and Social Society 2014-10 Article PeerReviewed Mohd Nor, Nor Amna A’liah and Said, Rusmawati (2014) Malaysia`s labour force participation in rural and urban areas. Asian Economics and Financial Review, 4 (10). pp. 1461-1472. ISSN 2305-2147; ESSN: 2222-6737 http://www.aessweb.com/journals/October2014/5002/2818
spellingShingle Mohd Nor, Nor Amna A’liah
Said, Rusmawati
Malaysia`s labour force participation in rural and urban areas
title Malaysia`s labour force participation in rural and urban areas
title_full Malaysia`s labour force participation in rural and urban areas
title_fullStr Malaysia`s labour force participation in rural and urban areas
title_full_unstemmed Malaysia`s labour force participation in rural and urban areas
title_short Malaysia`s labour force participation in rural and urban areas
title_sort malaysia s labour force participation in rural and urban areas
work_keys_str_mv AT mohdnornoramnaaliah malaysiaslabourforceparticipationinruralandurbanareas
AT saidrusmawati malaysiaslabourforceparticipationinruralandurbanareas