I am happy with the inclusion of wage subsidies in the larger cushioning/protection policy announced by the government today. I use cushioning/protection because the supply-side context makes the definition of stimulus irrelevant. As announced, the government will implement RM600 per month wage subsidies for 3 months. However, there is a big but. Is the RM600 […]

I am pretty taken aback by the expansion of the Malaysian labor force in the past year or so. The rise has made me skeptical about the utility of the labor market numbers to ascertain the health of the economy. Whenever I look at it, I tell myself, wait until it normalizes. When? If you look at […]

One impact of minimum wage is the general increase in labor supply in the market. Let us be clear and not talk too generally or loosely. Precision is key. I think if you cannot be clear, then it is very likely that you do not understand or have not thought of the issue well enough. […]

(This is a really long reply and relatively technical. For summary in plain English, click here.) Let us begin with a real life conversation between friends of mine and a professor of economics. The professor highlighted how women were discriminated in a certain country and how that discrimination affected the labor market in a bad […]

Ahmad Fuad Rahmat wrote a short essay in support of minimum wage.[1] While there may be a number of reasons to support minimum wage, I believe he misunderstands some issues and mischaracterizes others while he attacks the anti-minimum wage camp. He first and foremost takes issue with Wan Saiful Wan Jan’s statement that ”when employers […]

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