Logistic Regression Model on the Inclusion of Foreign Workers in Malaysia Based on Selected Demographic Factors

Ainur Jalalia Abd Rahim1 , Zalina Mohd Ali2 and Munira Ismail3

1Department of Mathematical Sciences, Universiti Kebangsaan Malaysia (This email address is being protected from spambots. You need JavaScript enabled to view it.)
2Department of Mathematical Sciences, Universiti Kebangsaan Malaysia (This email address is being protected from spambots. You need JavaScript enabled to view it.)
3Department of Mathematical Sciences, Universiti Kebangsaan Malaysia (This email address is being protected from spambots. You need JavaScript enabled to view it.)

 

ABSTRACT

This study aims to determine the relationship between the status of labor force participation among foreigners with demographic factors including gender, stratum, marital status, educational attainment, and age. Using the Labor Force Survey (LFS) Report obtained from the Universiti Kebangsaan Malaysia Data Bank, which spans the period from 2003 until 2015, foreign national participation in the labor force in Malaysia between the ages of 15 and 64 is considered in this study. The labor force participation among foreigners was analyzed using logistic regression to determine the impact of demographic factors on the participation of foreign workers for selected years. The result of the logistic regression analysis revealed that certain demographic factors influenced labor force participation among foreigners in Malaysia where educational attainment influenced the inclusion of labor among foreigners in Malaysia in 2003, stratum and educational attainment in 2006, stratum and age in 2009, stratum and educational attainment in 2012, and stratum, educational attainment and age in 2015. Stratum factors are seen to affect the participation of the labor force in certain years, especially for foreigners living in urban areas compared to the rural areas. Foreigners with formal education are more likely to enter the labor market compared to those who do not have formal education. In terms of age categories, middle-aged foreigners influence the rate of labor force participation as compared to young foreigners. However, the labor force participation among foreigners is not influenced by gender in the Malaysian labor market.

Keywords: Foreign Workers, Demographic Factors, Logistic Regression, Educational Attainment, MiddleAged Foreigners