Modeling unemployment duration, determinants and insurance premium pricing of Malaysia: insights from an upper middle-income developing country.

ABSTRACT: This paper investigates the behavior and determinants of unemployment in Malaysia, an upper middle-income country with relatively low unemployment but rising labor market mismatches, and derives a model-based insurance premium pricing schedule that broadens the country's unemployment insurance coverage. The unemployment profile is best fitted with Burr distribution, and using survival analysis, the average unemployment duration is found to be the highest for the youths and it decreases gradually after age 20. The results of the Cox proportional hazards model show that age, gender, and education are significant explanatory variables of unemployment. While all age groups are statistically significant in explaining unemployment, the youngest cohort has the least likelihood of being hired, whi

SUBMITTER: Khoo WC 

PROVIDER: S-EPMC9343568 | biostudies-literature | 2022

REPOSITORIES: biostudies-literature