Sains Malaysiana 49(4)(2020): 909-918

http://dx.doi.org/10.17576/jsm-2020-4904-20

 

A Hedonic Wage Regression Model for Vulnerable Workers in Malaysia: The Use of Exclusion Restriction as a Remedy for Self-Selection Bias

(Model Regresi Gaji Hedonik untuk Pekerja Terancam di Malaysia: Penggunaan Sekatan Pengetepian sebagai Remedi untuk Bias Pilihan Sendiri)

 

HAZRUL SHAHIRI1, KIHONG PARK2* & ZULKIFLY OSMAN3

 

1Centre for Sustainable and Inclusive Development, Faculty of Economics & Management, Universiti Kebangsaan Malaysia, 43600 UKM Bangi, Selangor Darul Ehsan, Malaysia

 

2Department of Economics, Division of the Humanities and Social Sciences, Korea Army Academy Yeong-cheon (KAAY), Yeongcheon-si, Gyeongbuk-do, 770-849, South Korea

 

3Majlis Perundingan Gaji Negara, Kementeriam Sumber Manusia, Persiaran Sultan Sallahuddin Abdul Aziz Shah, Presint 1, 62000 Putrajaya, Federal Territory, Malaysia

 

Diserahkan: 17 Julai 2019/Diterima: 27 Disember 2019

 

ABSTRACT

This paper uses an exclusion restriction variable as the key to resolve an identification problem in self-selection bias of a wage regression model. The study basically utilizes Hedonic Wage Theory (Rosen 1986, 1974) to test the relationship between vulnerable workers and wage. Analysis was made using the Mincerian semi-log earnings function (Mincer 1974) specified in the tradition of Becker's Human Capital Model (Becker 1964) with a correction for self-selection bias. A total of 1705 private sector employees were selected and the result showed that the coefficient for predicted vulnerable worker variable was significant but non-positive. The implication of this result is that no adjustments in wages are made to compensate workers for undesirable job conditions. A third party, namely government interventions, is therefore needed in order to protect and enhance the well-being of the vulnerable workers.

 

Keywords: Bias; self-selection; vulnerable; wage

 

ABSTRAK

Kajian ini menggunakan pemboleh ubah sekatan pengetepian untuk menyelesaikan masalah bias pilihan sendiri dalam model regresi gaji. Secara prinsipnya, kajian ini menggunakan Teori Gaji Hedonik (Rosen 1986, 1974) untuk menguji hubungan antara pekerja terancam dan gaji. Analisis dijalankan dengan menggunakan fungsi pendapatan Semi log (Mincer 1974) yang diterangkan dalam Model Sumber Manusia Becker (Becker 1964) yang memperbetulkan bias pilihan sendiri. Sejumlah 1705 pekerja sektor swasta telah dipilih. Keputusan menunjukkan pekali kepada pemboleh ubah pekerja terancam adalah signifikan tetapi negatif. Implikasinya, tiada pembetulan gaji dibuat sebagai pampasan kepada pekerja yang terlibat dalam persekitaran pekerja yang tidak sihat. Pihak ketiga iaitu campur tangan kerajaan diperlukan untuk melindungi dan meningkat kebajikan pekerja terancam ini.

 

Kata kunci: Bias; gaji; pilihan sendiri; terancam

 

RUJUKAN

 

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