The determinants of foreign labor entry and whitening program

• Main Author: Syafiqah, Azizan
• Format: Thesis
• Language: English; English
• Published: 2014
• Subjects: HD4801-8943 Labor. Work. Working Class; HF5549-5549.5 Personnel Management. Employment
• Online Access: https://etd.uum.edu.my/5113/1/s813569.pdf; https://etd.uum.edu.my/5113/2/s813569_abstract.pdf; https://etd.uum.edu.my/5113/

The trend of foreign labor entry in Malaysia has increasing over time. But, since implementation of Whitening Program the number of foreign labor in the country had decreases. Thus, this paper aims to examine the determinants of foreign labor entry and analyse the impact of Whitening Program by using yearly data £tom 1997 until 2012. This study employed Ordinary Least Square (OLS) to regress selected variables that have been chosen. The dependent variable in this study is foreign labor (FL) while gross domestic product (GDP), consumer price index (CPI), wage, unemployment and job opportunities are independent variables. The empirical result shows that foreign labor entry has positive relationships with gross domestic product (GDP), unemployment and wage. Consumer price index (CPI) and public security are significant and found to be negatively related with independent variable, while job opportunities turns out to be only variable which is not significant. By using Breusch- Pagan-Godfrey to test Heteroscedasticity and serial correlation found that the model is homoscedasticity, no serial correlation and normally distributed. Discussion from the Whitening Program found that there is decreasing number of foreign labor entry in Malaysia after the implementation of this program. Thus, this program is effective in reducing foreign labor entry in Malaysia