Determinants of Labour Force Participation Rate in Malaysia from Gender Perspective

Abstract

Labour force participation rate (LFPR) is always a concern in economic view in Malaysia. This research study on how the labour force factors will affect the LFPR according to gender perspective for every state in Malaysia from the year 2011 to 2016. Static Panel Data analysis were used in this study. By using Fixed effect model (FEM), outside labour force, non-married, secondary, and tertiary education level have inverse relationship with male LFPR, while the marital status of labour force has positive relationship with male LFPR. Next, for the effect of determinants and characteristics of labour force on female LFPR, Random effect model (REM) was used. The model shows that unemployed, widowed status, outside labour force, and marital status have an inverse relationship with female LFPR. Meanwhile, non-formal education level, tertiary education level, and age group between 40-64 have positive relationship with female LFPR. In conclusion, it is important to understand the LFPR according to gender in Malaysia because it will shape the comparative advantage and describes the situation of Malaysia’s labour market. This study provides an overview of labour force in Malaysia using an appropriate statistical modelling known as panel data approach.

Labor Force Participation Rate and Expected Length of Retirement 2001-2047: A Case Study in Malaysia

“…Previous studies have mainly focused on gender disparity in labor force participation, highlighting a strong correlation between women's participation and national economic growth [4]. Despite improvements in women's educational attainment, their participation remains significantly lower than that of men [5] [6]. Furthermore, the statistics underlined demographic changes policy reforms like dual-earner 2 couples trends which are playing key roles at enhancing high rates of female LFPR [7].…”