PRELIMINARY STUDY OF AGGREGATE MISMATCH IN MALAYSIA

Abstract

This thesis explores the incidence and the effect of aggregate mismatch (MM) among tertiary educated workers in the labour market on Malaysia’s economic growth, Gross Domestic Product (GDP). Aggregate mismatch refers to workers’ own actual qualification level is higher or lower than that is required by the job. A series of analysis such descriptive analysis integration and co-integration analysis and long-run equilibrium relationship were performed. Based on the descriptive analysis, it was found that on average, around 7.7 percent of the total workers with tertiary education in Malaysia were deemed as mismatched workers.