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Effects of health and education on income distribution in Malaysia

1. 0 CHAPTER 1

THE EFFECT OF HEALTH INSURANCE AND EDUCATION ON INCOME Circulation AND POVERTY IN MALAYSIA.

Background Of study

Health and education is the two important components of individual capital. This becomes the most crucial must Malaysian people because health and education have a strong relationship between the income circulation and the amount of poverty in Malaysia. Besides that, medical position and educational level are utilization in measured the amount of income and the level of poverty in a country.

Problem Statement

The specific problem declaration of this analysis is shown below:

There is a strong romantic relationship between health status and education level on the income circulation and poverty in Malaysia.

There is a space of the income distribution between the educated and healthy people with the low-income and poor people in Malaysia.

Income inequality and poverty is not satisfactory in Malaysia.

Research Objective

To identify the partnership of health and education on income level and poverty in Malaysia.

To determine whether education level offers effect on income level and poverty in Malaysia.

To identify the factors of poverty in Malaysia.

Scope and limitation of the study

This analysis was concentrate on discovering and investigates whether health and education have an effect on the income level and poverty in Malaysia. To examine and determine this romance, it is important to measure the significant of every of the parameters related to the study. Besides that, this study will cover and use the data from 2005 until 2009 in Malaysian country. The info areas will be the real per capita gross local product (GDP), open public spending on expenses (percent of GDP), total enrolment in main school and life expectancy of birth. The info are obtained from Department of reports Malaysia and World Development Indicators (World Loan company).

significance of the problem

This newspaper is important to the monetary development in Malaysia as this research will help the government to recognize and determine the key area that need to be improved in order to lessen income inequality and solve poverty. Other than that, this paper can also help the Malaysian communities to boost themselves by showing them the important of advanced schooling level which is the critical indicators donate to higher income level.

Chapter outline

In chapter 1, we will discuss about the intro of this review. We will know a little bit about the top of health insurance and education. After conducting this research, we will determine the challenge and from then on we can form the objectives of this study. Last but not least, we can determine the opportunity and limitation while performing this analysis.

Chapter 2 discuss about the relevant literature review. We described the adjustable in this chapter which will be the health, educational level, income inequalities and poverty. The conceptual platform also included to clarify the relationship between the independent parameters and dependent variables.

Chapter 3 make clear about the data and strategy. This identifies the info used, the populace and sampling methods that was very important to the study. From the data that we find, we can evaluate the data and make a hypothesis. From then on we can test the info.

2. 0 Section 2

2. 1 Introduction

As we looking at the present condition inside our country, we can easily see that there surely is a strong marriage between the health insurance and education level with Malaysian areas' income distribution and poverty. This can be simplified as, there's a gap between your income syndication of the informed and healthy people who have the indegent and poor people in Malaysia. This issue caused by some factors or variables that donate to the income inequalities and poverty. Due to that, the federal government and the neighborhoods itself should identify and determine any areas that should be improved and find some suggestion to solve or reduce this issue. So that, we clearly note that the best way to reduce and improve this example is to increase the health insurance and education status in Malaysia as this is actually the common factors in identifying the income level and poverty level in one place. After do some reading and find some literature review related to the situation, this research presents the inspection of the effect of both important components in individual needs which will be the health and education on the income circulation and poverty in Malaysia.

2. 0 Theoretical Framework

Health Status

Education level

DEPENDENT VARIABLE

-Income inequality

-Poverty

Level of Savings

2. 3 Literature Review

There can be an effect of health and education on income distributions and poverty in many areas nowadays. This can be explained through some relevant literature review. Other than health and education level, the amount of savings also grouped as the primary factors affecting the income distribution and poverty.

The problem of the income inequality and poverty is affected by health and education has looked into. Matching to Bakhtiari and Meisami (2009), the amount of education, degree of income, cost savings and health position make a difference the income inequality and poverty. The higher educated folks have more opportunities to earn more money or income. Besides that, a lot more literate people tend to have high awareness using their health and seeking medical when they ill. The finding of this paper is enhancing medical and education status in Islamic countries will certainly reduce the income inequality and poverty in Islamic countries. This paper also mentioned that Functional implications show that this empirical examination can help the Islamic countries administration to recognize any areas that should be improved to be able to reduce the income inequality and ease poverty. Furthermore, this strategies help administration to recognize areas that needs to be improved upon in order to lessen income inequality and reduce poverty collection.

To explain the reality that there are some important determinants of poverty and income distribution in producing countries, Dao M. Q (2007), use an example of 40 expanding countries in the world, it was found that some of the population below the poverty brand is linearly depends on the human being capital such as health, nourishment, and formal education. All this is the components of advancements in the development of one country. This means that this real human capital reduce income inequalities and poverty. After that, in addition they use 35 expanding countries to evaluate and it was discovered that income inequality linearly influenced by the same explanatory parameters but other than that, the newborn mortality rate and the principal school conclusion rate also affect poverty and income level.

Bastos et. al (2010), Research has been done to the children in Portugal to investigate the profile of income-poor children and the results obtained state governments that twenty five percent of them are at risk of poverty. They may be from the reduced income families and this will impact the culture on their eating habits. This contributes to the facts that the folks from the low socio-economic organizations do not eat healthily. Mackereth C. J et. al also do some research on the culture of eating for the reduced income families looked after found the same results as Bastos et. al where they aren't eat healthily and eating whatever available in front rather than baking the healthy food choices. It is because they don't have sufficient resources and lack of time.

The romance between socioeconomic deprivation and health position also offers been recognized by Drakopoulos S. A et. al (2010). The result implies that the socioeconomic deprivation of child has negative effects on our health especially on our working stage. Our psychological health will lower slowly due to this deprivation.

Another results found from Habibov N. N (2010) about the low-income transitional countries which also verify that health position and education level can affect the self-perceived cultural stratification in the multi-country like Armenia, Azerbaijan, and Georgia. It really is explained that the most affordable factors in increasing the income degree of the low-income transitional countries are health status and education because this is actually the factors of growing the effectiveness of one country and increase the degree of low-income people.

In his research, Adjaye, J. A (2004), take a look at if the income inequality impact health. The relationship between these two variables is among the most major problem in our lifestyle nowadays. The result shows that the folks that contain low-income profiles will fall suffering because they don't have sufficient resources to pay for the treatment and medicine. Other than that, it also discovered that the people from abundant family can live longer than the indegent family people. This can be simply stated that the bigger income level we have the higher level of health we have been.

To confirm that educational can enhance the peoples income inequality, Ning, G (2010) do some research in China. It was found that, develop more in educational will help us to lessen the phenomena of income inequality. Besides that, one of the ways to solve the problem of poverty is to do more investment in education because this will provides high return in future.

Lanaskoronskis, M. et. al (2009) found in their investigation that Representation of advanced schooling will contribute to the high competitiveness of any country. Competitiveness identifies the skill people, goods and services we've, or ideas can be accepted locally and international. On the other words, higher education becomes the main areas that contribute to increase competitiveness.

The common factors that donate to the poverty can be explained through the newspaper of Wang, X. et al (2009) where they discovered that the poverty line in China are because of the lack of education that automatically causing the unemployment that can make them cannot gain enough resources to buy food. That is why China government conduct some surveys to investigate this problem and they also discovered that the profile of the low-income people is bad as a result of lack of usage of healthy food in their country.

Education is the human's source to apply job and opportunities in one country. It is because education is the main source of a firm, administrator and employers to evaluate their degree of income. Education is a real human capital investment that gives a long-term sustainable development for these people. In Benjamin, S. J et. al (2011), it was discovered that household income is use to gauge the Malaysian people ability to enter at any higher education institution. Lack of the resources will donate to the lack of knowledgement. Besides that the parents will face the opportunity to pay the high fees because of their children. This is because before this they don't take more attention on the degree of education. They cannot apply a good job and from then on their income is insufficient to aid the needs of education for his or her children.

3. 0 Section 3

3. 1 The data and technique that we used in this study is unit root test and the Ordinary least squares (OLS) to stand for the consequences of health insurance and education on income distribution and poverty. Besides that will shows whether there is a relationship between your dependent variables and independent variables.

3. 2 Data, people and sampling methods.

In this paper, the data was covering the time series data from calendar year 2005 to 2009 that is 5 years. For the populace, this paper focuses on the folks of 14 claims in Malaysia.

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