This paper explores the impact of aggregate overqualification on regional economic growth in Malaysia from 2005 to 2017 using Dynamic Panel Data (DPD) approach. The aggregate overqualification was gauged as the percentage of workers with at least a bachelor’s degree qualification who employed in an occupation below than the professional job level. Following the method, while the incidence stood at 1 percent, it was however higher in Kuala Lumpur (4.4 percent) and Selangor (3.9 percent) and was much lower in Perak (-0.26 percent) and Perlis (-0.12 percent). Moreover, the incidence was higher after 2010. Empirical findings revealed strong evidence of negative impact of the aggregate overqualification on regional economic growth. Yet, the magnitudes of the effect were smaller, between 0.02 and 0.03. Further analysis revealed the negative impact was greater in most developed states and for the period after 2010. The findings depict that there is a growth penalty for not being fully utilised the knowledge and skills of highly educated workers at the regional labour market.
The aim of this study is to examine the extent to which colleagues" human capital accumulation (education, work experience and training) had an impact on individuals" earnings in the service sector in Malaysia. The study employed data from the 2007 Productivity Investment Climate Survey (PICS) and the colleagues" human capital ISSN 2162-3058 2017 accumulation was measured using information from both workers and employers survey. Random Effect (RE) was used to estimate the effects of these factors on wages. Findings from the RE showed that only co-workers" education had a positive and significant impact on individual wages. One year of colleagues" additional schooling will increase the individuals" earnings between 2.8 and 4.7 percent a year. Women experience a higher wage premium than that of men (4.7 against 3.5 percent). In addition, educational dispersion between respondents and workplaces also had a significant impact on earnings as it increases workers" earnings between 2 and 3.7 percent for every additional increase of one standard deviation of the educational dispersion. These positive effects can be interpreted as the existence of positive spillovers or externalities of the education of colleagues at the workplace as it can enhance productivity of other employees in the same organization. International Journal of Human Resource Studies
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