The Impact of Foreign Labour on Host Country Wages: The Experience of a Southern Host, Malaysia

Prema-chandra Athukorala and Evelyn Devadason ()

Departmental Working Papers from The Australian National University, Arndt-Corden Department of Economics

Abstract: This paper investigates the impact of foreign labour on domestic manufacturing wages through a case study of Malaysia, a country where foreign labour immigration has played a key role in manufacturing growth over the past two decades. The main focus of the paper is on an econometric analysis of the determinants of inter-industry variation in wage growth using a new panel dataset. The results suggest that wage growth is fundamentally embedded in the structure and performance of domestic manufacturing. There is evidence of a statistically significant negative impact of foreign labour on the growth of unskilled-worker wages, but the magnitude of the impact is rather small.

Keywords: International labour migration; foreign workers; wages; Asia; Malaysia (search for similar items in EconPapers)
JEL-codes: F22 J31 J61 O53 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2011
New Economics Papers: this item is included in nep-dev, nep-lab and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: The Impact of Foreign Labor on Host Country Wages: The Experience of a Southern Host, Malaysia (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pas:papers:2011-03

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