Sectoral Growth and the Distribution of Income across Ethnic Groups in Malaysia

M. Yusof Saari ()
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M. Yusof Saari: University of Groningen

Journal of Income Distribution, 2011, vol. 20, issue 1, 29-48

Abstract: The objective of this article is to examine the impact of growth in different production sectors on the distribution of income across ethnic groups in Malaysia. A multiplier decomposition technique for a socio-economic system, represented by a Social Accounting Matrix (SAM), is used to analyze the impacts. Results show that growth in all production sectors tends to increase inter-ethnic income inequality, in particular for households in rural areas. Income inequality can be explained by differences in the payments per employed household across production sectors.

Keywords: Social Accounting Matrix (SAM); income distribution; growth; multiplier decomposition (search for similar items in EconPapers)
JEL-codes: D58 O15 (search for similar items in EconPapers)
Date: 2011
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