|Conference or Workshop Item
|300 Social sciences > 303 Social processes
|LPPKN - National Population and Family Development Board, Malaysia: Population and Family Research Division
|Immigrant labour, Manufacturing, Unskilled workers, Real wage
|National Population and Family Development Board (NPFDB) in collaboration with Population Studies Unit, Faculty of Economics and Administration, University of Malaya.
|The heavy reliance on immigrant labour in manufacturing remains a contentious issue and we address three concerns with respect to their impact are did they displace native workers or complement them? Did their influx impede real wage growth? And did they lower real productivity growth? We found that immigrants complemented local workers in the initial phase when a labour shortage emerged at prevailing wage levels but displaced them in later periods because employers favoured them due to significant non-wage cost savings. Finally, the contention that immigrant labour use contributed to keeping productivity low found some support. In the light of these findings we discuss policy options with respect to immigrant workers.