Skip to main content

The Need for Escaping the Wage Curse

The wage share is very much present in the political debate as a measure of how the “benefits of growth” are fairly distributed between labor and capital. The decent level and growth of wages represent the concept of economic justice or fairness for household because almost two-thirds of their income is sourced from the labor market. This implies that wage is precarious, especially if someone loses a job, whereas property rights ensure that rents and other form of capital incomes have greater security.

The common conjectures that increasing to higher wages could lead to market distortion and reversely affect economic performance seems to be an unspell curse to the Malaysian economy. These assumptions are strongly held by the majority of employers as a result of the lack of evidence-based facts and scientific evaluation. In collaboration with the Ministry of Finance, this study provides exposure regarding the need to increase wage rates and attainable benefits from such increases to employers, employees and the entire population. Some recommended approaches that can be used to increase wages without impacting economic competitiveness, are provided.

For details, please contact our economist:

Assoc. Prof. Dr. Mohd Yusof Saari
Chief Economist

Assoc. Prof. Dr. Mohd Yusof Saari

Visit Profile

Selected Projects

Informal Economy and Productivity Growth

New Dynamics of Global Supply Chains and Implications for Productivity

Premature Deindustrialization and Productivity Performance

New Wage Model for Building Sustainable Business and Workforce

Penyediaan Kajian Pelan Tindakan Khusus
Sembilan 2021-2025 (RPNS 2021-2025)

Study on Measures and Strategies to Increase Labor Compensation

A study to develop an economy-wide model for refinement of medium-term labor market forecasting and evidence-based policy formulation

Jadual Input-Output Negeri & Rancangan Pembangunan Negeri Sembilan (RPNS)

Impacts and Consequences of Unemployment Insurance

State Productivity Assessment

Effects of Labor Market Conditions on Shadow Economy in Malaysia

Untapped Economically Active Labor Force to Promote Economic Growth and Productivity

The Need for Escaping the Wage Curse

Meniti Titian Hidup: Memahami Impak Badai Inflasi

Job Market Monitor: Climbing the Job Ladder among Graduates

Development of Leading Indicators of Unemployment Rates