Education and Wage Differentials in the Philippines
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 sect...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| 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_20091110082638 http://hdl.handle.net/10986/4312 |
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okr-10986-43122021-04-23T14:02:17Z Education and Wage Differentials in the Philippines Luo, Xubei Terada, Takanobu ACCOUNTING ACHIEVEMENTS IN EDUCATION AGE GROUP AGRICULTURAL SECTOR AGRICULTURAL WORKERS COLLEGE DEGREE DAILY EARNINGS DAILY WAGE DECOMPOSITION METHODOLOGY ECONOMIC EFFICIENCY EDUCATION POLICY ELEMENTARY EDUCATION ELEMENTARY SCHOOL EMPLOYEE ENROLLMENT RATES EQUAL OPPORTUNITIES FEMALE LABOR FEMALE LABOR FORCE FEMALE WORKERS GROSS ENROLLMENT GROSS ENROLLMENT RATE GROSS ENROLLMENT RATES HIGH SCHOOL HIGH SCHOOL DIPLOMA HIGH UNEMPLOYMENT HIGH UNEMPLOYMENT RATE HIGH WAGE HIGHER EDUCATION HIGHLY EDUCATED PEOPLE HOUSEHOLD INCOME HUMAN CAPITAL HUMAN CAPITAL EARNINGS INCOME DISTRIBUTION INCOME INEQUALITY INFORMAL SECTOR INVESTMENT IN EDUCATION JOB OPPORTUNITIES JOBS LABOR ECONOMICS LABOR FORCE LABOR MARKET LABOR MARKET EFFICIENCY LABOR MARKET PARTICIPANTS LABOR MARKET PERFORMANCE LABORERS LEVELS OF EDUCATION LOW EMPLOYMENT MALE COUNTERPARTS MALE WORKER MALE WORKERS OCCUPATION OCCUPATIONS OLDER AGE GROUP PAPERS PERFORMANCE INDICATORS POVERTY REDUCTION PRIMARY EDUCATION REAL WAGE REGIONAL AVERAGE REGIONAL DIFFERENCE RETURNS TO EDUCATION SCHOOL CERTIFICATE SCHOOL EDUCATION SCHOOLING SECONDARY EDUCATION SELF-EMPLOYMENT SKILLED LABOR TERTIARY EDUCATION TERTIARY ENROLLMENT UNEMPLOYMENT UNEMPLOYMENT RATE UNIVERSITY EDUCATION UNIVERSITY GRADUATES UNSKILLED WORKERS WAGE DETERMINATION WAGE DIFFERENTIAL WAGE DIFFERENTIALS WAGE DISTRIBUTION WAGE EMPLOYMENT WAGE GAP WAGE INCREASES WAGE INEQUALITY WAGE LEVEL WAGE PREMIUM WAGE RATE WAGES WORKER WORKERS WORKING HOURS 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. 2012-03-19T19:13:46Z 2012-03-19T19:13:46Z 2009-11-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091110082638 http://hdl.handle.net/10986/4312 English Policy Research working paper ; no. WPS 5120 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper East Asia and Pacific East Asia and Pacific Southeast Asia Asia Philippines |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING ACHIEVEMENTS IN EDUCATION AGE GROUP AGRICULTURAL SECTOR AGRICULTURAL WORKERS COLLEGE DEGREE DAILY EARNINGS DAILY WAGE DECOMPOSITION METHODOLOGY ECONOMIC EFFICIENCY EDUCATION POLICY ELEMENTARY EDUCATION ELEMENTARY SCHOOL EMPLOYEE ENROLLMENT RATES EQUAL OPPORTUNITIES FEMALE LABOR FEMALE LABOR FORCE FEMALE WORKERS GROSS ENROLLMENT GROSS ENROLLMENT RATE GROSS ENROLLMENT RATES HIGH SCHOOL HIGH SCHOOL DIPLOMA HIGH UNEMPLOYMENT HIGH UNEMPLOYMENT RATE HIGH WAGE HIGHER EDUCATION HIGHLY EDUCATED PEOPLE HOUSEHOLD INCOME HUMAN CAPITAL HUMAN CAPITAL EARNINGS INCOME DISTRIBUTION INCOME INEQUALITY INFORMAL SECTOR INVESTMENT IN EDUCATION JOB OPPORTUNITIES JOBS LABOR ECONOMICS LABOR FORCE LABOR MARKET LABOR MARKET EFFICIENCY LABOR MARKET PARTICIPANTS LABOR MARKET PERFORMANCE LABORERS LEVELS OF EDUCATION LOW EMPLOYMENT MALE COUNTERPARTS MALE WORKER MALE WORKERS OCCUPATION OCCUPATIONS OLDER AGE GROUP PAPERS PERFORMANCE INDICATORS POVERTY REDUCTION PRIMARY EDUCATION REAL WAGE REGIONAL AVERAGE REGIONAL DIFFERENCE RETURNS TO EDUCATION SCHOOL CERTIFICATE SCHOOL EDUCATION SCHOOLING SECONDARY EDUCATION SELF-EMPLOYMENT SKILLED LABOR TERTIARY EDUCATION TERTIARY ENROLLMENT UNEMPLOYMENT UNEMPLOYMENT RATE UNIVERSITY EDUCATION UNIVERSITY GRADUATES UNSKILLED WORKERS WAGE DETERMINATION WAGE DIFFERENTIAL WAGE DIFFERENTIALS WAGE DISTRIBUTION WAGE EMPLOYMENT WAGE GAP WAGE INCREASES WAGE INEQUALITY WAGE LEVEL WAGE PREMIUM WAGE RATE WAGES WORKER WORKERS WORKING HOURS |
| spellingShingle |
ACCOUNTING ACHIEVEMENTS IN EDUCATION AGE GROUP AGRICULTURAL SECTOR AGRICULTURAL WORKERS COLLEGE DEGREE DAILY EARNINGS DAILY WAGE DECOMPOSITION METHODOLOGY ECONOMIC EFFICIENCY EDUCATION POLICY ELEMENTARY EDUCATION ELEMENTARY SCHOOL EMPLOYEE ENROLLMENT RATES EQUAL OPPORTUNITIES FEMALE LABOR FEMALE LABOR FORCE FEMALE WORKERS GROSS ENROLLMENT GROSS ENROLLMENT RATE GROSS ENROLLMENT RATES HIGH SCHOOL HIGH SCHOOL DIPLOMA HIGH UNEMPLOYMENT HIGH UNEMPLOYMENT RATE HIGH WAGE HIGHER EDUCATION HIGHLY EDUCATED PEOPLE HOUSEHOLD INCOME HUMAN CAPITAL HUMAN CAPITAL EARNINGS INCOME DISTRIBUTION INCOME INEQUALITY INFORMAL SECTOR INVESTMENT IN EDUCATION JOB OPPORTUNITIES JOBS LABOR ECONOMICS LABOR FORCE LABOR MARKET LABOR MARKET EFFICIENCY LABOR MARKET PARTICIPANTS LABOR MARKET PERFORMANCE LABORERS LEVELS OF EDUCATION LOW EMPLOYMENT MALE COUNTERPARTS MALE WORKER MALE WORKERS OCCUPATION OCCUPATIONS OLDER AGE GROUP PAPERS PERFORMANCE INDICATORS POVERTY REDUCTION PRIMARY EDUCATION REAL WAGE REGIONAL AVERAGE REGIONAL DIFFERENCE RETURNS TO EDUCATION SCHOOL CERTIFICATE SCHOOL EDUCATION SCHOOLING SECONDARY EDUCATION SELF-EMPLOYMENT SKILLED LABOR TERTIARY EDUCATION TERTIARY ENROLLMENT UNEMPLOYMENT UNEMPLOYMENT RATE UNIVERSITY EDUCATION UNIVERSITY GRADUATES UNSKILLED WORKERS WAGE DETERMINATION WAGE DIFFERENTIAL WAGE DIFFERENTIALS WAGE DISTRIBUTION WAGE EMPLOYMENT WAGE GAP WAGE INCREASES WAGE INEQUALITY WAGE LEVEL WAGE PREMIUM WAGE RATE WAGES WORKER WORKERS WORKING HOURS Luo, Xubei Terada, Takanobu Education and Wage Differentials in the Philippines |
| geographic_facet |
East Asia and Pacific East Asia and Pacific Southeast Asia Asia Philippines |
| relation |
Policy Research working paper ; no. WPS 5120 |
| description |
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. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Luo, Xubei Terada, Takanobu |
| author_facet |
Luo, Xubei Terada, Takanobu |
| author_sort |
Luo, Xubei |
| title |
Education and Wage Differentials in the Philippines |
| title_short |
Education and Wage Differentials in the Philippines |
| title_full |
Education and Wage Differentials in the Philippines |
| title_fullStr |
Education and Wage Differentials in the Philippines |
| title_full_unstemmed |
Education and Wage Differentials in the Philippines |
| title_sort |
education and wage differentials in the philippines |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091110082638 http://hdl.handle.net/10986/4312 |
| _version_ |
1764390877942251520 |