98 research outputs found
Labour Mobility and Unemployment : Some Evidence from Labour Force Survey
The rise and persistence of unemployment emerged as a serious macroeconomics problem during the 1980s. This highlighted the possibility of imperfect labour mobility as
significant factor. Thus, understanding the relationship between labour mobility and unemployment is important in analyzing the unemployment during the 1980s.
Using Labour Force Survey (LFS) data from 1975 to 1990 inclusively, this dissertation analyzes this relationship at both aggregate and disaggregate levels. At the aggregate
level, the relationship appears to be negative with no evidence that labour mobility drives aggregate unemployment. This negative relationship also emerges at industry and regional level. These results point against sectoral shock explanations for the rise in joblessness.
However, both high unemployment industries and regions have higher mobility. This suggests that the unemployment can affect mobility differently at two levels. First, at the aggregate level, it may reduce mobility through its effects on job offer arrival probabilities, and the potential cost of changing industry. At the industry and regional level, it may raise mobility. Since the unemployment differences across industries and regions represent varying employment opportunities and prospects, high differences may encourage mobility towards low unemployment industries and regions.
The data also suggests a role for individual heterogeneity. Among the selected high unemployment demographic groups, old workers, male workers, and nonwhite workers have low mobility. However, high unemployment young and manual workers, they have high labour mobility. Thus, low mobility as symptom of high unemployment only applied to certain groups. Policies constructed to reduce unemployment by raising mobility must
target the appropriate groups
Overeducation and happiness in the Malaysian graduate labour market
The objective of this paper is to examine overeducation among Malaysian graduates with focus on its association with predetermined (before they enter the labour market) and current level of overall life happiness.Results reveal that there are a substantial percentage of overeducated graduates.Graduates who reported a higher level of predetermined happiness are less likely to be overeducated. Overeducation is also significantly and negatively associated with one’s current level of happiness.This finding suggests ‘hysterias’ of overeducation and supports Job Competition Theory’s prediction on persistent of overeducation.Thus, happiness might be one of the reasons why overeducation is a persistent and durable phenomenon
Revisiting The Easterlin Paradox: What Can We Learn from It?
This paper examines the Easterlin paradox using empirical and simulated data. The results reveal that the existence of Easterlin paradox could be just due to the rating scale of happiness measurement. The rating scale measurement of self-reported happiness limits the variation of happiness of time series data due to the averaging effect compared to the happiness variation of cross-sectional data. Mathematically, the low variation of happiness can lead to the Easterlin paradox: cross-sectional effects of income on happiness are significant but turn into insignificant for time series happiness. The result of simulated data without the scale of happiness measurement, i.e., the underlying happiness, shows that the effects of income on happiness are significant at cross-sectional and time series data. Nevertheless, once the limited scale of happiness measurement, i.e., the self-reported happiness, is used, the income effect is significant only at cross-sectional data. Thus, the low variation in scale of measurement can be the cause of the Easterlin paradox. What we can learn is: the limited scale of happiness measurement produces the Easterlin paradox, and the happiness measurement needs to be revised to ensure the variation in happiness could be captured adequately
Early identification of low employability graduate in Malaysia : the use of proportional hazard model / Lim Hock-Eam
This paper illustrates the use of statistical prediction model for early identification of low employability Malaysian graduates using the proportional hazard model. The relative predicted hazard rate or probability of exit from unemployment is used to proxy the graduate's
employability. The out-of-sample evaluation shows that the statistical prediction model predicts correctly 83%, 75% and 80% of the graduates that identified at bottom 15%, 20% and 25% of employability respectively. The estimated probability of exit from unemployment also suggests
that nine months is the reasonable expected unemployment duration for Malaysian graduates
Happiness and unemployment: the case of Malaysian graduates / Hock-Eam Lim
The objective of this paper is to study the determinants of graduates' happiness during their transition from university to labour market, with the focus on the effect of their employment status. Results of descriptive statistics reveal that there is a decreasing trend of happiness over the duration of unemployment. In particular, the happiness level drops from 'happy' to 'unhappy' after 90 days of being unemployed. Estimated Ordered Logit model shows that there is a negative psychological impact of unemployment. This negative impact is intensified after 180 days of being unemployed. Specifically, compared to those unemployed, those employed with full-time employment that commensurate with qualification are found to be happier. Other significant determinants of graduates' life happiness are financial difficulties, religions, types of degree and age
Estimating the determinants of vehicle loan default in Malaysia: an exploratory study
As revealed by Malaysia’s bankruptcy statistics, around a quarter of bankruptcy in Malaysia is due to default of vehicle loan.This has led to the tightening up of vehicle loan underwriting and increased vehicle loan rejection rates. The need for a better credit risk scoring model is also
raised by the banks.This warrants a study to estimate the determinants of vehicle loan default in Malaysia.This paper estimates the determinants of vehicle loan default probability which could be used to build a loan default prediction or forecasting model for credit risk scoring purposes.Using a simple random sample of 138 car loan borrowers that was provided by an established bank in Malaysia, the descriptive statistical procedures and econometrics modelling were performed to unveil these vehicle loan default
determinants.Results of descriptive statistics revealed that more than half of the borrowers were default.Results of logit models further revealed that loan related characteristics are the most important determinants of probability of default.Specifically, the significant determinants of loan default were: areas of residence, vehicle purchase price, length of service, existing relationship with bank, interest rate, and available guarantor.Borrowers who are in high
risk of default are characteristically those who reside in rural areas, secure higher vehicle purchase price, have longer length of employment service, are borrowers new to the bank, acquire loans charged with high interest rates, and are without a guarantor
Estimating the determinants of vehicle loan default in Malaysia: an exploratory study
As revealed by Malaysia’s bankruptcy statistics, around a quarter of bankruptcy in Malaysia is due to default of vehicle loan.This has led to the tightening up of vehicle loan underwriting and increased vehicle loan rejection rates. The need for a better credit risk scoring model is also
raised by the banks.This warrants a study to estimate the determinants of vehicle loan default in Malaysia.This paper estimates the determinants of vehicle loan default probability which could be used to build a loan default prediction or forecasting model for credit risk scoring purposes.Using a simple random sample of 138 car loan borrowers that was provided by an established bank in Malaysia, the descriptive statistical procedures and econometrics modelling were performed to unveil these vehicle loan default
determinants.Results of descriptive statistics revealed that more than half of the borrowers were default.Results of logit models further revealed that loan related characteristics are the most important determinants of probability of default.Specifically, the significant determinants of loan default were: areas of residence, vehicle purchase price, length of service, existing relationship with bank, interest rate, and available guarantor.Borrowers who are in high
risk of default are characteristically those who reside in rural areas, secure higher vehicle purchase price, have longer length of employment service, are borrowers new to the bank, acquire loans charged with high interest rates, and are without a guarantor
The impacts of oil shocks on Malaysia's GDP growth
This paper suggests that instrumental variable regression is a good alternative to nonlinear specification model when
estimating the impacts of oil shocks on GDP growth in Malaysia
The effectiveness of location incentive: An analytical study of manufacturing SMEs in the Kedah State
The main objective of this research is to find out the effectiveness of location incentive in att racting Small and Medium Enterprises (SMEs) to a certain industrial location in the state of Kedah. The location choice identified in this research would be Sungai Petani and non-Sungai Petani industrial areas. By using the logit model, we found that location incentive is not as effective as other factors in attracting SMEs in setting up their establishments in Kedah. The important factors that influence the location choice of manufacturing SMEs are (i) the years of operation of an SME, and (ii) the physical distribution of an SME product
- …