EFFECTS OF INTERNSHIP EXPERIENCES IN MALAYSIA ON POST-STUDY INCLINATIONS OF MALAYSIAN STUDENTS IN THE UNITED STATES

Abstract

Using regression and propensity score matching, the research in this paper estimates the effects of having internship experiences in Malaysia on the return inclinations of Malaysian students who are currently studying in the United States. In light of the prevalence of skilled migration and brain drain, internship-based initiatives potential policy tools to retain talent. Given that Malaysia of late is facing a significant human capital issue, this research proposes that one potential target population that can help address the skills gap in the country is its students who are currently studying abroad and thus a potential policy tool to facilitate an eventual return of these students could be in the form of extending internship opportunities to them. The results showed that students who had internship experiences in Malaysia are significantly less inclined to remain in the U.S. permanently. This result is consistent across the regression and matching estimations. The findings from this research suggest that internships can be viable policy tool for Malaysia to retain its talent to address the current human capital issues it is facing.