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New article on youth wages, here’s a TLDR with charts.
This is related to stats from the Graduate Tracer Study (GTS), which found majority of grads earned RM1-1.5k in 2020 compared to RM2-2.5k in 2019. [1/9] https://twitter.com/KRInstitute/status/1384748761423953921
This is related to stats from the Graduate Tracer Study (GTS), which found majority of grads earned RM1-1.5k in 2020 compared to RM2-2.5k in 2019. [1/9] https://twitter.com/KRInstitute/status/1384748761423953921
We can’t discount Covid-19. GTS definition of working grad includes full-time & part-time. Underemployment among young workers were more prevalent. When people work less, monthly wages are lower. [2/9]
![We can’t discount Covid-19. GTS definition of working grad includes full-time & part-time. Underemployment among young workers were more prevalent. When people work less, monthly wages are lower. [2/9]](https://pbs.twimg.com/media/EzfbJ55UUAE_bMU.jpg "We can’t discount Covid-19. GTS definition of working grad includes full-time & part-time. Underemployment among young workers were more prevalent. When people work less, monthly wages are lower. [2/9]")
But my article also highlights longer-term issues. In @KRInstitute School-to-Work study, wage offers for grads range between RM1.3-2.7k in 2017/8, but this level is at the back of slow wages for younger workers compared to national average. [3/9]
![But my article also highlights longer-term issues. In @KRInstitute School-to-Work study, wage offers for grads range between RM1.3-2.7k in 2017/8, but this level is at the back of slow wages for younger workers compared to national average. [3/9]](https://pbs.twimg.com/media/EzfbcNHUUAY3Rlv.jpg "But my article also highlights longer-term issues. In @KRInstitute School-to-Work study, wage offers for grads range between RM1.3-2.7k in 2017/8, but this level is at the back of slow wages for younger workers compared to national average. [3/9]")
I recategorized earning bands in GTS from 2008 & try to approximate wage distribution by qualification during crisis & non-crisis time. Two highlights: L) for Bachelor’s, they are vulnerable in the sense that they move to lower income category during crisis time. [4/9]
![I recategorized earning bands in GTS from 2008 & try to approximate wage distribution by qualification during crisis & non-crisis time. Two highlights: L) for Bachelor’s, they are vulnerable in the sense that they move to lower income category during crisis time. [4/9]](https://pbs.twimg.com/media/EzfbkiCVIAAwUIB.jpg "I recategorized earning bands in GTS from 2008 & try to approximate wage distribution by qualification during crisis & non-crisis time. Two highlights: L) for Bachelor’s, they are vulnerable in the sense that they move to lower income category during crisis time. [4/9]")
We don’t see this for other qualification. But worth to mention wages for Diploma holders bunch in the RM1-2k income category in the last decade (R pic in tweet before). Perpetual low wage level, likely with very marginal increase. [5/9]
Going back to the structure of our econ, employment growth is in sectors with high % of semi-skilled workers, & relatively low wages. Lots of young workers incl. uni grads are hired in these sectors, and this is a type of mismatch between nature of job & workers' qual [6/9].
![Going back to the structure of our econ, employment growth is in sectors with high % of semi-skilled workers, & relatively low wages. Lots of young workers incl. uni grads are hired in these sectors, and this is a type of mismatch between nature of job & workers' qual [6/9].](https://pbs.twimg.com/media/EzfcXFkUYAQCUyY.jpg "Going back to the structure of our econ, employment growth is in sectors with high % of semi-skilled workers, & relatively low wages. Lots of young workers incl. uni grads are hired in these sectors, and this is a type of mismatch between nature of job & workers' qual [6/9].")
How to boost wages? Better enforce min wages, but remember that it is a *minimum* & we must strive to move the average/median wages to living wages. Another policy with potential but not discussed as much is productivity-linked wages system:
https://jpp.mohr.gov.my/pengenalan
[7/9]
https://jpp.mohr.gov.my/pengenalan
[7/9]
Policies to fix structural issues (incentives for investments etc.) can be deliberate abt wages too. Can try to follow PenjanaKerjaya 2.0, which require firms to pay RM1.5k. SL1M/Protege allowance set at RM2k. Good first step to influence firm’s behavior. [8/9]
![Policies to fix structural issues (incentives for investments etc.) can be deliberate abt wages too. Can try to follow PenjanaKerjaya 2.0, which require firms to pay RM1.5k. SL1M/Protege allowance set at RM2k. Good first step to influence firm’s behavior. [8/9]](https://pbs.twimg.com/media/EzfdDB3VoAEz5FX.jpg "Policies to fix structural issues (incentives for investments etc.) can be deliberate abt wages too. Can try to follow PenjanaKerjaya 2.0, which require firms to pay RM1.5k. SL1M/Protege allowance set at RM2k. Good first step to influence firm’s behavior. [8/9]")
I also discussed some of my findings & more on this topic with @dashranyohan and @iskandarfareez yesterday on @BFMradio:
https://www.bfm.my/podcast/the-bigger-picture/live-learn/why-are-so-many-malaysian-fresh-grads-unemployed-underpaid
Thanks for reading! [9/9]
https://www.bfm.my/podcast/the-bigger-picture/live-learn/why-are-so-many-malaysian-fresh-grads-unemployed-underpaid
Thanks for reading! [9/9]
