A Mapping of Job Opportunities for Indonesian Migrant Workers in the Malaysian Manufacturing Industry

Sri Wahyuni*, Nasri Bachtiar, Elfindri and Endrizal Ridwan
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Sri Wahyuni*: Department of Economics, Faculty of Economics, Almuslim University, Bireuen – Aceh, Indonesia
Nasri Bachtiar: Department of Economics, Faculty of Economics, Andalas University, Padang – Sumatera Barat, Indonesia
Elfindri: Department of Economics, Faculty of Economics, Andalas University, Padang – Sumatera Barat, Indonesia
Endrizal Ridwan: Department of Economics, Faculty of Economics, Andalas University, Padang – Sumatera Barat, Indonesia

The Journal of Social Sciences Research, 2019, vol. 5, issue 11, 1539-1550

Abstract: This paper aims to place Indonesian migrant workers based on a mapping from the estimation of the demand function of foreign workers and the efficiency of production costs. The demand function of foreign workers and the function of production costs are obtained through a derivation in the function of Constant Elasticity of Substitution (CES) production. The mapping of Indonesian migrant workers placement applies five scenarios by the assumption that local wage constantly increased using panel data from the Malaysian manufacturing industries, period 2002-2015. The result found that the relationship of all foreign workers with local workers at various levels of skills in the manufacturing industry is substitution. The priority for high-skilled which is a priority for placing Indonesian migrant workers is manufacturing industries with CA code and CI code, middle-skilled is manufacturing industries with CB code, CI code, and CJ code, low-skilled is manufacturing industries with CA code, CL code, and Other manufacturing industries.

Keywords: Foreign workers; Placement of indonesian migrant workers; Wages; Price of capital goods; The cost of production. (search for similar items in EconPapers)
Date: 2019
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