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The paper analyses ethnic-based and gender-based segregation in employment as a fundamental reason for the economic inequality between the three major ethnic groups in Malaysia. Using the Duncan Dissimilarity Index (DDI) and the Adjusted Duncan Dissimilarity Index (ADDI), the study found a marked increase in the degree of segregation based on occupation between males and females by the end of the New Economic Policy (NEP), particularly among the ethnic Malays. The findings provide an explanation as to why ethnic inequalities persisted post NEP.
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