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Ethnic wage differences in Malaysia: parametric and semiparametric estimation of the Chinese–Malay wage gap

✍ Scribed by Marcia M. A. Schafgans


Publisher
John Wiley and Sons
Year
1998
Tongue
English
Weight
234 KB
Volume
13
Category
Article
ISSN
0883-7252

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✦ Synopsis


Parametric and semiparametric estimated wage equations, which correct for sample selection bias, are used to assess the returns to eduction and extent of ethnic discrimination' in (Peninsular) Malaysia. In particular, this paper focuses on the level of discrimination' between Malay and Chinese men and women. The Andrews±Schafgans (1998) estimator is used to estimate consistently the wage equation intercept in the semiparametric case. The results show that the Chinese±Malay oered wage dierence typically is larger in absolute value among women than men. The strong `discrimination' favouring Chinese over Malays observed using the parametric results is negated by the semiparametric results.