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Full-Text Articles in Social and Behavioral Sciences
Do Foreign Companies Pay Higher Wages Than Their Local Counterparts In Malaysian Manufacturing?, David Lim
Do Foreign Companies Pay Higher Wages Than Their Local Counterparts In Malaysian Manufacturing?, David Lim
Prof. David Lim
This paper shows that foreign companies pay higher wages than their local counterparts in Malaysian manufacturing. Step-wise regression analysis shows that this is due to two factors. The first, and perhaps the more important, is the greater capital intensity of the production processes used by foreign companies. The second is their tendency to pay wages that they consider, or that are considered to be, commensurate with the wages that they pay in their home countries. This may be called the demonstration effect of wage remuneration in less developed countries.
"Sweat Labor" And Wages In Malaysian Manufacturing, David Lim
"Sweat Labor" And Wages In Malaysian Manufacturing, David Lim
Prof. David Lim
References have often been made to the presence of "sweat labor" in manufacturing in less developed countries (LDCs) and of the need to introduce minimum-wage legislation to protect the interests of such employees. However, the data on the wages paid to such workers are almost nonexistent, and the discussion so far has been couched in general terms. I shall attempt to provide some of the empirical basis for the discussion in Malaysia.