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Children and the Labor Force Participation and Earnings of Parents in the Philippines

Author

Listed:
  • Aniceto C. Orbeta

    (PIDS)

  • Jr.

Abstract

This paper demonstrates how family size can be an important contributor to poverty in the Philippines. It examines one of the mechanisms behind this link by focusing on the relation between number of children and the decision to seek a job and parents' wage earnings. It surveys the international literature to establish how the problem has been approached and what the results are for other countries. It then formulates and tests a model using a nationally representative household survey data for the Philippines to explain what determines the decision to seek a job and the earnings of both mothers and fathers. The model specifically considered the endogeneity of the number of children in both the labor force participation and the earnings equations.

Suggested Citation

  • Aniceto C. Orbeta & Jr., 2005. "Children and the Labor Force Participation and Earnings of Parents in the Philippines," Development Economics Working Papers 22670, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:develo:22670
    as

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    File URL: http://www.eaber.org/node/22670
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    References listed on IDEAS

    as
    1. Rosenzweig, Mark R & Wolpin, Kenneth I, 1980. "Life-Cycle Labor Supply and Fertility: Causal Inferences from Household Models," Journal of Political Economy, University of Chicago Press, vol. 88(2), pages 328-348, April.
    2. Angrist, Joshua D & Evans, William N, 1998. "Children and Their Parents' Labor Supply: Evidence from Exogenous Variation in Family Size," American Economic Review, American Economic Association, vol. 88(3), pages 450-477, June.
    3. Joyce P. Jacobsen & James Wishart Pearce III & Joshua L. Rosenbloom, 1999. "The Effects of Childbearing on Married Women's Labor Supply and Earnings: Using Twin Births as a Natural Experiment," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 449-474.
    4. Cochrane, S. & Kozel, V. & Alderman, H., 1990. "Household consequences of high fertility in Pakistan," World Bank - Discussion Papers 111, World Bank.
    5. Paul J. Devereux & Sandra E. Black & Kjell G. Salvanes, 2004. "The more the merrier? The effect of family composition on children's education," Open Access publications 10197/735, School of Economics, University College Dublin.
    6. Jungmin Lee, 2008. "Sibling size and investment in children’s education: an asian instrument," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(4), pages 855-875, October.
    7. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-685, May.
    8. Mroz, Thomas A, 1987. "The Sensitivity of an Empirical Model of Married Women's Hours of Work to Economic and Statistical Assumptions," Econometrica, Econometric Society, vol. 55(4), pages 765-799, July.
    9. William Stinner & Paul Mader, 1975. "Sons, Daughters or Both?: An Analysis of Family Sex Composition Preferences in the Philippines," Demography, Springer;Population Association of America (PAA), vol. 12(1), pages 67-79, February.
    10. Kenneth Bollen & David Guilkey & Thomas Mroz, 1995. "Binary outcomes and endogenous explanatory variables: Tests and solutions with an application to the demand for contraceptive use in tunisia," Demography, Springer;Population Association of America (PAA), vol. 32(1), pages 111-131, February.
    11. Rosenzweig, Mark R & Wolpin, Kenneth I, 1980. "Testing the Quantity-Quality Fertility Model: The Use of Twins as a Natural Experiment," Econometrica, Econometric Society, vol. 48(1), pages 227-240, January.
    12. Shelly Lundberg & Elaina Rose, 2002. "The Effects Of Sons And Daughters On Men'S Labor Supply And Wages," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 251-268, May.
    13. Linda Adair & Eilene Bisgrove & David Guilkey & Socorro Gultiano, 2002. "Effect of childbearing on Filipino women's work hours and earnings," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(4), pages 625-645.
    14. Browning, Martin, 1992. "Children and Household Economic Behavior," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1434-1475, September.
    15. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
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    Citations

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    Cited by:

    1. Michelle Sheran Sylvester, 2007. "The Career and Family Choices of Women: A Dynamic Analysis of Labor Force Participation, Schooling, Marriage and Fertility Decisions," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 10(3), pages 367-399, July.
    2. Dacuycuy, Connie B., 2017. "Energy Consumption, Weather Variability, and Gender in the Philippines: A Discrete/Continuous Approach," Discussion Papers DP 2017-06, Philippine Institute for Development Studies.
    3. Orbeta, Aniceto Jr. C., 2006. "Children and Household Savings in the Philippines," Discussion Papers DP 2006-14, Philippine Institute for Development Studies.
    4. Besamusca, Janna & Tijdens, Kea & Keune, Maarten & Steinmetz, Stephanie, 2015. "Working Women Worldwide. Age Effects in Female Labor Force Participation in 117 Countries," World Development, Elsevier, vol. 74(C), pages 123-141.
    5. de Jong, Eelke & Smits, Jeroen & Longwe, Abiba, 2017. "Estimating the Causal Effect of Fertility on Women’s Employment in Africa Using Twins," World Development, Elsevier, vol. 90(C), pages 360-368.
    6. Yap, Josef T. & Majuca, Ruperto P., 2013. "Aspirations and Challenges for Economic and Social Development in the Philippines Toward 2030," Discussion Papers DP 2013-27, Philippine Institute for Development Studies.
    7. Cabegin, Emily, 2006. "The Effect of Filipino Overseas Migration on the Non-Migrant Spouse’s Market Participation and Labor Supply Behavior," IZA Discussion Papers 2240, Institute for the Study of Labor (IZA).
    8. Sarah Gammage, 2015. "Labour market institutions and gender equality," Chapters,in: Labour Markets, Institutions and Inequality, chapter 12, pages 315-339 Edward Elgar Publishing.

    More about this item

    Keywords

    Family Size; labor force participation; Earnings; Philippines;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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