2015
DOI: 10.1016/j.worlddev.2015.07.015
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Sources of Income Growth and Inequality Across Ethnic Groups in Malaysia, 1970–2000

Abstract: This paper examines the sources of income growth for major ethnic groups in Malaysia. An input-output structural decomposition analysis is extended and applied to the social accounting matrices of 1970 and 2000. The results indicate that the expansion of exports and the changes in the compensation of labor and capital inputs are the main determinants for the income changes. The effects differ largely between rural and urban areas, between skilled and unskilled workers, and between the major ethnic groups. The … Show more

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Cited by 29 publications
(28 citation statements)
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“…Unlike other nations where the lower of the income bracket is comprised of ethnic minorities, the Malay majority in Malaysia earns lower incomes despite being more than half of the total population. (Saari, Dietzenbacher, Los, 2015). The NEP was implemented with two key objectives, that is to eradicate poverty regardless of ethnicity and to ensure economic opportunities were available to all Malaysians regardless of background.…”
Section: Introductionmentioning
confidence: 99%
“…Unlike other nations where the lower of the income bracket is comprised of ethnic minorities, the Malay majority in Malaysia earns lower incomes despite being more than half of the total population. (Saari, Dietzenbacher, Los, 2015). The NEP was implemented with two key objectives, that is to eradicate poverty regardless of ethnicity and to ensure economic opportunities were available to all Malaysians regardless of background.…”
Section: Introductionmentioning
confidence: 99%
“…The main strategies are by in situ agriculture and land development for the fast blooming of rural labor force with higher participation in secondary sectors (industrial and manufacturing) and tertiary sectors (service). Besides that, the government has planned with low-cost housing projects and urban petty trade as an effort to help the urban poor (Saari et al, 2015).…”
Section: Introduction mentioning
confidence: 99%
“…The data also indicate that the income gaps in urban localities as well as national level still remain wider. Income inequality is a major concern in particular for multiracial countries like Malaysia because ethnically more homogenous populations tend to have more equal income distributions (Alesina and Glaeser 2004;Saari et al 2015). This is supported by the growing body of economic literature that finds that ethnic heterogeneity induces social conflicts and violence, which in turn, affects economic growth (Easterly and Levine 1997;Mauro 1995;Montalvo and Reynal-Querol 2005).…”
Section: B Urban Poverty and Hard-core Poverty In Malaysiamentioning
confidence: 99%
“…Poverty and inequalty is one of the important constraints for natioanl unity. The ethnic riots on 13 May 1969 and Kg Medan incidence on 4 March 2001 are the reflections of racial clashes due to poverty and inequalities amongst ethnic groups (Shari 2000;Faaland et al 2003;Saari et al 2015). The negative consequences of ethnic diversity imply that adequate policies are required to ensure that the benefits of economic growth are equally shared among all ethnic groups.…”
Section: ) National Unitymentioning
confidence: 99%