Effects of health and education on income distribution in Malaysia

Effects of wellness and discip position on income distribution in Malaysia1.0 CHAPTER 1THE EFFECT OF wellness AND EDUCATION ON INCOME DISTRIBUTION AND POVERTY IN MALAYSIA.Background Of ingestHealth and fostering is the two grievous components of human capital. This becomes the roughly all important(p) needs to Malayan great deal beca purpose wellness and gentility have a strong relationship between the income distribution and the train of penury in Malaysia. Besides that, the wellness side and educational train argon use in measured the level of income and the level of indigence in a country.Problem StatementThe specific hassle statement of this speculate is commemo localizen infra in that respect is a strong relationship between wellness post and education level on the income distribution and poverty in Malaysia.There is a gap of the income distribution between the educated and well race with the low-income and un good multitude in Malaysia.Income distinct ion and poverty is not equal in Malaysia.Research ObjectiveTo make out the relationship of health and education on income level and poverty in Malaysia.To determine whether education level gives impact on income level and poverty in Malaysia.To direct the factors of poverty in Malaysia.Scope and limitation of the studyThis study was focus on identifying and inquires whether health and education affect the income level and poverty in Malaysia. To image and determine this relationship, it is important to measure the signifi sackt of each of the variables related to this study. opposite than that, this study get out cover and use the entropy from 2005 until 2009 in Malaysian country. The data atomic number 18as are the real per capita gross domestic product (GDP), overt spending on expenditure (percent of GDP), total enrolment in aboriginal school and life expectancy of birth. The data are obtained from Department of statistics Malaysia and do master(prenominal) Development Indicators (World Bank).signifi backsidece of the problemThis paper is important to the economic increment in Malaysia as this study will help the government to identify and determine the important area that need to be im excluded in order to wither income variation and forge poverty. early(a) than that, this paper overly tail assembly help the Malaysian communities to improve themselves by showing them the important of higher education level which is the important factors contribute to higher income level.Chapter chalk outIn chapter 1, we will discuss close the introduction of this study. We will have intercourse a little bit about the important of health and education. by and by conducting this study, we will determine the problem and after that we apprise develop the objectives of this study. Lastly, we skunk determine the scope and limitation while conducting this study.Chapter 2 discuss about the relevant literature review. We explained the variable in this chapter which are the health, educational level, income inequalities and poverty. The conceptual framework also included to explain the relationship between the self-sufficing variables and dependent variables.Chapter 3 explain about the data and methodology. This refers to the data used, the community and take in methods that was very important to this study. From the data that we keep an eye on, we can analyze the data and make a hypothesis. afterward that we can test the data.2.0 CHAPTER 22.1 triggerAs we looking at the present condition in our country, we can see that thither is a strong relationship between the health and education level with Malaysian communities income distribution and poverty. This can be change as, there is a gap between the income distribution of the educated and healthy people with the poor and unhealthy people in Malaysia. This problem caused by rough factors or variables that contribute to the income inequalities and poverty. Because of that, the gove rnment and the communities itself should identify and determine both areas that should be improved and find some suggestion to solve or reduce this problem. So that, we clearly see that the best way to reduce and improve this situation is to improve the health and education status in Malaysia as this is the common factors in determining the income level and poverty level in one place. After do some reading and find some literature review related to this situation, this study presents the investigating of the subject of the two important components in human needs which are the health and education on the income distribution and poverty in Malaysia.2.0 Theoretical modellingHealth StatusEducation levelDEPENDENT VARIABLE-Income variation-PovertyLevel of Savings2.3 Literature ReviewThere is an effect of health and education on income distributions and poverty in many areas in this world. This can be explained through some relevant literature review. Other than health and education l evel, the level of savings also categorized as the main factors affecting the income distribution and poverty.The problem of the income distinction and poverty is affected by health and education has investigated. According to Bakhtiari and Meisami (2009), the level of education, level of income, savings and health status can affect the income inequality and poverty. The higher educated people have more opportunities to earn more money or income. Other than that, the more literate people tend to have high sentience with their health and seeking medical when they ill. The finding of this paper is boosting the health and education status in Islamic countries will reduce the income inequality and poverty in Islamic countries. This paper also verbalize that Practical implications show that this empirical examination can help the Islamic countries government to identify any areas that should be improved in order to reduce the income inequality and alleviate poverty. Furthermore, this strategies help government to identify areas that should be improved upon in order to reduce income inequality and reduce poverty line.To explain the facts that there are some important determinants of poverty and income distribution in evolution countries, Dao M.Q (2007), use a sample of 40 developing countries in the world, it was set in motion that some of the population below the poverty line is linearly depends on the human capital such as health, nutrition, and formal education. All of this is the components of improvements in the development of one country. This means that this human capital reduce income inequalities and poverty. After that, they also use 35 developing countries to measure and it was run aground that income inequality linearly affected by the same explanatory variables but opposite than that, the infant mortality rate and the primary school completion 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 states that 25 percent of them are at risk of poverty. They are from the low income families and this will influence the culture on their take habits. This contributes to the facts that the people from the lower socio-economic groups do not eat healthily. Mackereth C.J et.al also do some research on the culture of eating for the low income families and it also found the same results as Bastos et.al where they are not eat healthily and eating whatever available in front rather than cooking the healthy food. It is because they dont have enough resources and want of time.The relationship between socioeconomic neediness and health status also has been identified by Drakopoulos S.A et.al (2010). The result shows that the socioeconomic deprivation of child has negative do on our health in particular on our working stage. Our psychological health will decrease tardily because of this deprivation.Anot her results found from Habibov N.N (2010) regarding the low-income transitional countries and this also prove that health status and education level can influence the self-perceived social stratification in the multi-country like Armenia, Azerbaijan, and Georgia. It is stated that the most affordable variables in increasing the income level of the low-income transitional countries are health status and education because this is the factors of growing the posture of one country and improve the level of low-income people.In his research, Adjaye, J.A (2004), examine whether the income inequality affect health. The relationship between these two variables has become the major problem in our daily life nowadays. The result shows that the people that have low-income profiles are more likely to fall sick because they dont have enough resources to ante up for the treatment and medicine. Other than that, it also found that the people from rich family can live longer than the poor family pe ople. This can be simply stated that the higher income level we have the higher level of health we are.To prove that educational can improve the peoples income inequality, Ning, G (2010) do some investigation in China. It was found that, expand more in educational will help us to reduce the phenomena of income inequality. Other than that, one of the ways to solve the problem of poverty is to do more investment funds in education because this will gives high return in future.Lanaskoronskis, M. et.al (2009) found in their investigation that Reflection of higher education will contribute to the high fighting of a country. Competitiveness refers to the skill people, goods and services we have, or ideas can be accepted locally and international. On the other words, higher education becomes the most important areas that contribute to increase competitiveness.The common factors that contribute to the poverty can be explained through the paper of Wang, X. et al (2009) where they found that the poverty line in China are due to the lack of education that automatically causing the unemployment that will make them cannot gain enough resources to buy food. Thats why China government conduct some surveys to investigate this problem and they also found that the profile of the low-income people is unhealthy because of the lack of consumption of nutritionary food in their country.Education is the humans resource to apply contemplate and opportunities in one country. This is because education is the main source of a company, jitney and employers to measure their level of income. Education is a human capital investment that gives a long-term sustainable development for them. In Benjamin, S.J et.al (2011), it was found that star sign income is use to measure the Malaysian people ability to enter at any higher education institution. Lack of the resources will contribute to the lack of knowledgement. Besides that the parents will face the possibility to pay the high fees for their children. This is because onward this they dont take more attention on their level of education. They cannot apply a good job and after that their income is not enough to support the needs of education for their children.3.0 CHAPTER 33.1 The data and methodology that we used in this study is unit root test and the Ordinary least squares (OLS) to represent the effects of health and education on income distribution and poverty. Besides that this will shows whether there is a relationship between the dependent variables and independent variables.3.2 Data, population and sampling methods.In this paper, the data was covering the time series data from course of study 2005 to 2009 that is 5 years. For the population, this paper focuses on the people of 14 states in Malaysia.