Overskilling and Overeducation In Malaysia

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Workplace characteristics and determinants of over-education and overskilling in the manufacturing sector in Malaysia

This paper explores the influence of workplace characteristics on the determinants of over-education and overskilling in Malaysia. Based on the 2007 Productivity Investment Climate Survey (PICS-2) dataset, about 19 percent of workers are over-educated while 29 percent are overskilled (7% severely overskilled and 22% moderately overskilled). The multinomial logit reveals that workplace characteristics such as firm size, percentage of university workers at the workforce, types of ownership, number of competitors, and types of hiring practices all influence over-education. Nevertheless, the severely overskilled individual is less evident in firms with higher share of university workers, lower proportion of foreign ownership, higher number of competitors (> 25 competitors), and in firms where education and technical skills are of highest priority for hiring workers. Therefore, it may be surmised that the existence of such incidences is not only due to individuals’ characteristics as found in other studies but also contributed by employer characteristics where individuals work at

The incidence and the effect of overskilling on individuals’ wages in Malaysia: a quantile regression approach

This paper examines the incidence and the effect of overskilling on wages by taking individuals’ unobserved heterogeneity in ability using quantile regression (QR) method. Using data from the second Malaysia Productivity and Investment Climate Survey (PICS-2), the incidence of overskilling was reported around 31 percent - for which moderately overskilled accounted for 23 percent and severely overskilled accounted for 8 percent. Preliminary analysis revealed that overskilling was found to be heavily concentrated within low-ability segments of the workers’ conditional wage distributions. Using quantile regression (QR) method, the results revealed that although being overskilled resulted in wage penalty, the penalty, however, was heterogeneous across the entire workers’ conditional wages distribution. Indeed, the penalty for moderately overskilled was greater at the lower deciles and became smaller or even disappears as one moved up the wages distribution. This may be consistent with the view that the overskilled workers are likely amongst the lowability workers. By contrast, the penalty for severely overskilled, in particular women was evident all the way through the conditional wage distribution. This perhaps suggests that unobserved heterogeneity unable to explain the wages penalty for mismatched women. Nevertheless, this study may suggest the importance of including explicit controls for individuals’ unobserved ability where possible, as a mean to avoid bias estimation of the wage impacts of the overskilling

The Investigation of Job Search Behaviour Among Workers in the Manufacturing Sector in Malaysia: Do Education and Skill Mismatch Matter

This paper investigates the influence of education and skill mismatch on job search behaviour and quits intention among workers in the manufacturing sector in Malaysia. Three indicators of mismatch were employed here; over-education, overskilling and job mismatch and they were measured using workers’ own assessment. Using data from own field survey, the 2016 Co-workers’ Externalities at Workplace (TERS-16), it was found that 18%, 45% and 37% of respondents were deemed overeducated, overskilled and being in mismatched jobs, respectively. Using random effect probit models, three main findings were observed. As expected, there was strong evidence that overqualification resulted in job search activity. Being in jobs that completely different from workers’ actual field of study also increased the likelihood of seeking new jobs relative to the reference group. Finally, being overskilled also led to a higher probability of being engaged in job search behaviour. Interestingly, the magnitude of the effect was twice higher for the severely than for the moderately-overskilled. These findings were robust even after all education-skill mismatch indicators were controlled for together. The results of the study reflect greater potential mobility amongst the mismatched workers in Malaysia. There is impossible to ascertain whether or not such a move results in improved matches due to data limitation. Yet, from a firm’s perspective, higher intensity of job search behaviour among the mismatched may lead to a higher turnover rate and incur hiring and training cost.

A STRUCTURAL EQUATION MODELLING APPROACH TO VALIDATE QUESTIONNAIRE PEER LEARNING USING CONCEPT CARTOON

Institutions of higher education are facing new challenges in improving their quality of teaching nowadays. Educators believe that effective and quality teaching depend on strategies. Sense of humour is always classified as one of the important element for effective teaching. Concept cartoons have integrated a sense of humour, concept and daily life that can make the lesson more interesting and lively. The purpose of this paper is to validate the questionnaire by using confirmatory factor analysis. The questionnaire was answered by 392 secondary school students in Malaysia. Structural Equation Modelling was applied to test the model. The results confirmed that the revised model has achieved the minimum requirement of the model fit. The overall goodness of fit of the model has improved. The findings also revealed the two factors (communication and interest) measurement were valid and reliable. Future research on this topic could be carried out with an animated cartoon series in various fields

Measuring The Nature of East Asia’s Automobile Production Networks

The aim of this study is to explore the nature of East Asia’s automobile production networks by means of social-network methods. In this paper, we have also developed a domination degree index (DDI) and domination intensity index (DII) to measure the dominating power of each East Asian country in the automobile networks. The results suggested that the networks of East Asia’s automobile industry are expanding over time both in terms of the number of links in the network as well as the strength of those links. This result indicates that both export and import of automobile products in this region increase significantly over time. In addition, Japan has emerged as the main player, both in the case of auto parts and components (PC) and final automobiles. The Republic of Korea has also emerged as the second most important player in East Asia’s final automobile networks, while China has become the second most important player in East Asia’s auto PC networks. Even though Thailand is the third most important player in East Asia’s automobile networks in both auto PC and final automobiles, the analysis of this paper has suggested that there is a possibility for this country to overtake China and the Republic of Korea to become the second most important player in terms of both auto PC and final automobiles. The dramatic changes in the development of Thailand’s automobile industry as well as significant development in China’s auto PC have been made possible by the pivotal role played by Japan (on Thailand) and the Republic of Korea (on China) – all of which have stimulated the development of their subordinates’ auto industry in a so-called “win-win situation

Wage effect of over-education and mismatch in Malaysia: a random effect approach

This paper explores the ffict of education mismatch and earnings outcome in Malaysia by taking both over-education and mismatch byfield of study into account Based on 2007 Malaysia Productivity Investment Climate Survey (etcs), it is found that around 18%o and 28%, ofworkers employed in jobs for which they are over and under-educated, respectively. In terms of mismatch, about 52(% of workers are employed in jobs not corresponding to theirfield of study (1i% does not related and 35?(, no ipecificfield of study required). Close examination reveals that nearly twolhird of the overeducated are employed in jobs outside their ownfield of study. With respect to earnings outcomes, Random Effect (nz) models show that being overeducated and employed outside ownfield ofstudy resulted in earnings loss, betyveen 5 and 8o%for the former and 6 and l0%for the latter. Moreover, the wage penalty for being overeducated increases to roughly l40% to l7o% if working in jobs unrelated to theirfield of study. Greater earning loss may suggest that among the overeducated, they are heterogeneous of both schooling and workers. As such, the results imply that there are significant costs to selecting a major and then deciding to work in an occupation unrelated to the major since knowledge and skills acquired is not completely general and cannot simply be transferred to other occupations

The effects of over, required and under-education on earnings in manufacturing

This paper presents returns to education by taking into account the quality of jobs match held by workers in the manufacturing sector of Malaysia. This type of study is quite rare not only in the country but also across developing nations.Using the Second Malaysia Productivity Investment Climate Survey (PICS-2), nearly 20 per cent and 30 per cent of workers employed in jobs for which they are over-educated and under-educated, respectively.Further findings indicated that over-education is more acute among-st highly-educated workers whilst under-education is more evident for lowly educated workers.By gender, women have a higher proportion of over-educated workers compared to men.Consequently, over-education leads to lower productivity in terms of earnings.In the study, augmented Mincer earnings equation, i.e. the ORU model clearly showed that although returns to surplus education was positive ( ), the return was lower than the returns to required education ( ), approximately 6 per cent against 10 per cent. This means that overeducated workers earn significantly lower than their co-workers who are in similar jobs but who have less education, but well matched. Moreover, the ORU model signified that returns to required education was much greater than returns to actual educational attainment.All of these implied that the rate of return to education depends on the allocation of skills over jobs where earnings is not fully embodied but is (partly) determined by job characteristics and/or by the quality of the match between skills supplied by the worker and skills required by the job.Nevertheless, the situation of over-education among highly educated workers in the Malaysian labour market may impede the country’s intention to move toward the state of being a high-income country, as outlined in the “New Economic Model” blueprint, since it reduces individuals’ productivity

Pertumbuhan ekonomi dan keperluan Pendidikan Tinggi di Malaysia

Kajian lepas menunjukkan sistem pendidikan tinggi berkembang seiring dengan pertumbuhan ekonomi sesebuah negara. Namun begitu, dalam kes ekonorni Malaysia pengangguran siswazah menunjukkan trendyang semakin meningkat terutama dari kalangan mereka yang memiliki ijazah pertama, tetapi kurang dari kalangan pemegang diploma. Keadaan ini seolah-olah menggambarkan bahawa pasaran kerja tempatan lebih memerlukan pendidikan tinggi peringkat diploma berbanding ijazah pertama, sedangkan perkembangan sistem pendidikan tinggi negara ini lebih cenderung menghasilkan graduan peringkut ijazah pertama. Bagi mengelak pembaziran sumber adalah penting untuk menentukan program pendidikan yang benar-benar menyumbang kepada pertumbuhan ekonomi negara. Artikel ini bertujuan membuat analisis keperluan pendidikan tinggi di Malaysia berdasarkan data pertumbuhan ekonomi dan pendidikan tinggi dari tahun 1975 hingga 2004. Dalam konteks perkembangan pendidikan tinggi di Malaysia, hasil analisis menggunakan kaedah OLS menztnjukkan bahawa hanya enrolmen peringkat diploma mempunyai hubungan yang signi$kan dengan pertumbuhan ekonomi negara

The effects of overeducation on multiple job satisfaction towards enhancing individuals‘ well-being in Malaysia / Zainizam Zakariya and Harminder Battu

The aim of this paper is to examine the effects of overeducation on workers‘ job satisfaction towards enhancing individuals‘ well-being in Malaysia. Based upon 41,495 graduates from the 2007 Graduate Tracer Study (GTS-07) in Malaysia was analysed using subjective method of a worker‘s own assessment approach and logit model regression. Four multi-dimensions of satisfaction used here- high self-satisfaction, valuable work experience, anything can be learnt for the job occupied and job challenging. The study found that 32% of workers were overeducated - moderately overeducated (22%) and severely overeducated (10%). The logit model suggests that overeducation decreased individuals‘ job satisfaction across the four job satisfaction dimensions. This negative effects are much higher for high self-satisfaction and for the workers who are severely rather than moderately overeducated. This paper is perhaps one of the first to address the effects of overeducation in Malaysia which remains to be very scarce in the context of any developing country. To improve workers‘ well-being, individuals must find a job for which their educational backgrounds are required for the job they are doing