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Quality of Jobs in the Philippines: Comparing Self-Employment with Wage Employment

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  • Hasan, Rana

    (Asian Development Bank)

  • Jandoc, Karl Robert L.

    (Asian Development Bank)

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    Abstract

    Analysis of labor force survey data from 1994 to 2007 reveals that the structure of the Philippines labor force has been changing in several important ways. One is the movement from self-employment, the most predominant form of employment, to wage employment across a wide range of production sectors. How does one evaluate this change in terms of workers’ earnings—arguably the most important element of job quality? Since labor force survey data do not provide information on earnings of the self-employed, we combine information on household incomes (disaggregated by source) from the Family Income and Expenditure Survey (FIES) with information on household members’ employment-related activities from the Labor Force Survey (LFS) to shed light on this question. We also examine broad trends in the structure of employment, wages, and earnings. Our findings suggest that the decline of self-employment is no bad thing. For the most part, the earnings and educational profiles of the self-employed are very similar to those of casual wage earners, and clearly dominated by those of permanent wage earners even when observable worker characteristics are controlled for. An implication is that the self-employed do not seem to be “capitalists in waiting” as noted in recent literature. As selfemployment gives way to wage employment, especially casual wage employment in the services sector, the key challenge for policy is tackling the slow growth of wages and earnings indicated by both LFS and FIES data

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    Bibliographic Info

    Paper provided by Asian Development Bank in its series ADB Economics Working Paper Series with number 148.

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    Length: 45 pages
    Date of creation: Mar 2009
    Date of revision:
    Handle: RePEc:ris:adbewp:0148

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    1. Glinskaya, Elena & Lokshin, Michael, 2005. "Wage differentials between the public and private sector in India," Policy Research Working Paper Series 3574, The World Bank.
    2. Maarten Goos & Alan Manning, 2007. "Lousy and Lovely Jobs: The Rising Polarization of Work in Britain," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 118-133, February.
    3. de Mel, Suresh & McKenzie, David & Woodruff, Christopher, 2008. "Who are the microenterprise owners ? Evidence from Sri Lanka on Tokman v. de Soto," Policy Research Working Paper Series 4635, The World Bank.
    4. Fields, Gary S., 2007. "Labor market policy in developing countries : a selective review of the literature and needs for the future," Policy Research Working Paper Series 4362, The World Bank.
    5. Caliendo, Marco & Kopeinig, Sabine, 2005. "Some Practical Guidance for the Implementation of Propensity Score Matching," IZA Discussion Papers 1588, Institute for the Study of Labor (IZA).
    6. Banerjee, Abhijit & Duflo, Esther, 2007. "What is Middle Class about the Middle Classes Around the World?," CEPR Discussion Papers 6613, C.E.P.R. Discussion Papers.
    7. Maloney, William F., 2004. "Informality Revisited," World Development, Elsevier, vol. 32(7), pages 1159-1178, July.
    8. Ravallion, Martin & Chen, Shaohua, 2003. "Measuring pro-poor growth," Economics Letters, Elsevier, vol. 78(1), pages 93-99, January.
    9. Ferreira, Francisco H. G. & Paes de Barrios, Ricardo, 1999. "The slippery slope : explaining the increase in extreme poverty in urban Brazil, 1976-96," Policy Research Working Paper Series 2210, The World Bank.
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