Wage determinant between Male and female workers in Malaysia labour market

Abstract

Labour force landscape in Malaysia has grown significantly due to development of the country since the era of independence. The most noticeable change in the aspect of labour force participation is that women's labour force participation is growing not only in Malaysia but also around the world. Rapid developments in the usage of cutting-edge technology, as well as the range of skills that companies demand, have resulted in a more dynamic and competitive workplace. However, the key issue that has not been addressed as the labour market grows is gender wage differential. Various theories and findings have been presented to unravel these issues. In fact, this issue also has a place in high-level forum including United Nation. The wage model is estimated using a pooled model and separate model of gender based on secondary data from the Salaries and Wages Survey, 2018 from Department of Statistics Malaysia. The OLS results suggest that demographic factors, human capital aspects and job characteristics play a significant role in assessing the gender wage difference.