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Union relevance in the Malaysian labour market
Authors:Hazrul Shahiri  Zulkifly Osman  Kihong Park
Affiliation:1. School of Economics, National University of Malaysia, Bangi, Malaysia;2. Department of Economics, Korea Army Academy, Yeong‐cheon (KAAY), South Korea
Abstract:The study estimates the effect of union membership on workers' wages using individual‐level data from a survey conducted among employees in various sectors in Malaysia in 2012. Initial results show that union membership has a positive effect on wages. However, after controlling for endogeneity, union membership or the presence of a labour union within a firm is not statistically significant for individual wage levels. Because there is no trade union wage premium, the study suggests that the revival of labour union membership is not going to be an easy task.
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