Click here for search results
Education and wage differentials in the Philippines
 
Author:Luo, Xubei; Terada, Takanobu; Collection Title:Policy Research working paper ; no. WPS 5120
Country:Philippines; Date Stored:2009/11/10
Document Date:2009/11/01Document Type:Policy Research Working Paper
SubTopics:Regional Economic Development; Tertiary Education; Education For All; Labor Markets; Labor PoliciesLanguage:English
Region:East Asia and PacificReport Number:WPS5120
Volume No:1 of 1  

Summary: In the Philippines, an important part of income inequality is associated with the wage difference between the less educated and the better educated. The majority of the least educated are employed in low-paid services jobs and the agricultural sector. Tertiary education is to a large extent a prerequisite for high-paid occupations. Using the Labor Force Survey 2003-2007, this paper examines disparities in human capital endowment, returns to education, and the role of education in wage differentials in the Philippines. The empirical results show that returns to education monotonically increase - workers with elementary education, secondary education, and tertiary education earn 10 percent, 40 percent, and 100 percent more than those with no education. The results also show that education is the single most important factor that contributes to wage differentials. At the national level, education accounts for about 30 percent of the difference in wages. It accounts for a higher percentage of the difference for female workers (37 percent) than male workers (24 percent). There are also differences across regions and sectors. As an economy develops, the demand for skills increases. In the Philippines, efforts to improve education to increase the supply of highly educated people are important not only for long-term growth, but also for helping to translate growth into more equal opportunities for the children of the current generation.

Official Documents
Official, scanned versions of documents (may include signatures, etc.)
File TypeDescriptionFile Size (mb)
PDF 27 pagesOfficial version*1.89 (approx.)
TextText version**
How To Order

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.
** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.



Permanent URL for this page: http://go.worldbank.org/DQ40AXWWA0