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Type :thesis
Subject :HD Industries. Land use. Labor
Main Author :Zaharah Zainal Abidin
Title :The effect of aggregate mismatches among tertiary educated workers on economic growth in Malaysia, 1984-2016
Place of Production :Tanjong Malim
Publisher :Fakulti Pengurusan dan Ekonomi
Year of Publication :2020
Notes :With cd
Corporate Name :Universiti Pendidikan Sultan Idris
PDF Guest :Click to view PDF file

Abstract : Universiti Pendidikan Sultan Idris
This study aims to investigate the incidence and the outcome of aggregate mismatch in  the  labour  market  among  tertiary-educated  workers  on  economic  growth,  Gross Domestic  Product (GDP) in Malaysia between 1984 - 2016. In addition, the thesis also evaluates long-term  relationships and granger causal between the aggregate mismatch and other macro variables to  Malaysia's economic growth. The aggregate mismatch refers to workers’ own actual qualification  level is either higher or lower than that is required by the job. The study employed econometric  time-series analysis using Vector Error Correction Model (VECM). Apart from the GDP and the  aggregate mismatch, the time-series data over 33 years consist of the other five controlled  variables, i.e.- private consumption, investment, government expenditure, net export and education.  The variables were collected from various sources such as the Departments of Statistic Malaysia and  the World Bank. Four types of analysis were employed  -  descriptive analysis,  integration   analysis  (Unit  Root  Test  Augmented  Dickey  Fuller  Unit,  Lag Selection and Vector Auto  Regressive) followed by Johansen co-integration analysis and  granger  causality test.  Based  on   the  descriptive  analysis,  it  was  found  that  on average,  7.7  percent  of  the   tertiary-educated  workers  were  considered  being  in mismatched jobs. Subsequently, the  co-integration test showed at least one direction of  causation  between  GDP  and  the  aggregate   mismatch  and  other  variables.  The VECM  revealed  a  long-run  Granger  causality  of   aggregate  mismatch  and  other variables toward GDP. In the short term, however, the Wald test  only revealed a bi- directional causality between GDP and the aggregate mismatch. Finally, the  long-run relationship equation showed a significant negative relationship between the aggregate  mismatch and GDP. In conclusion, increasing in the number of mismatched workers at the aggregate  level in the labour market would slow down the country's economic performance  as  it  negatively   affects  the  growth.  It  is  important,  therefore,  for stakeholders such as governments, firms  and individuals to play roles in reducing the mismatch at the macro level.  

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