Disparities in Labor Market Performance in the Philippines
The Philippine economy has been growing rapidly, at an annual growth rate of 5 percent over the past five years. Such decent growth in gross domestic product, however, did not translate into an increase in household income. Wage income declined in...
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| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091110145051 http://hdl.handle.net/10986/4313 |
| Summary: | The Philippine economy has been growing
rapidly, at an annual growth rate of 5 percent over the past
five years. Such decent growth in gross domestic product,
however, did not translate into an increase in household
income. Wage income declined in real terms. The poverty
headcount increased slightly. The fruits of economic growth
were not shared equally across the country. Challenges
remain to create more jobs to keep pace with the rapidly
growing active population. Using the Philippines Labor Force
Survey data (2003-2007), this paper reviews the disparities
in labor market performance and examines the contribution of
regional and individual characteristics. The results show
that real wages declined and disparities widened between the
National Capital Region and other islands. The youth, less
educated, and women face more challenges in finding
employment with a decent salary, other things being equal.
Disparities in labor market performance are largely
associated with the difference in regional structure and
human capital endowment. Individual characteristics account
for roughly one-third of the difference in wages between the
National Capital Region and other regions; regional
structures and other unobservable factors account for
two-thirds of the difference. |
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