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Why is Unemployment High in the Philippines?

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  • Ray Brooks

Abstract

Unemployment has remained high in the Philippines, at almost twice the level of neighboring countries, despite relatively fast employment growth in the past decade. Employment growth was not sufficient to reduce unemployment because of rapid population growth and increased labor force participation. This paper shows that Philippine employment growth and unemployment declines were positively correlated with real GDP growth and, to a lesser extent, negatively with the real minimum wage. The key policy implications are that higher economic growth and moderation of increases in the real minimum wage are required to reduce unemployment.

Suggested Citation

  • Ray Brooks, 2002. "Why is Unemployment High in the Philippines?," IMF Working Papers 02/23, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:02/23
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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=15591
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    References listed on IDEAS

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    1. Markus Rodlauer, 2000. "Philippines; Toward Sustainable and Rapid Growth," IMF Occasional Papers 187, International Monetary Fund.
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    Cited by:

    1. Magnoli Bocchi, Alessandro, 2008. "Rising growth, declining investment : the puzzle of the Philippines," Policy Research Working Paper Series 4472, The World Bank.
    2. repec:asi:ajemod:2018:p:356-373 is not listed on IDEAS
    3. Briones, Roehlano M., 2013. "Agriculture, Rural Employment, and Inclusive Growth," Discussion Papers DP 2013-39, Philippine Institute for Development Studies.
    4. Aldaba, Fernando T., 2002. "Philippine Development: A Research Journey Through the Philippine Journal of Development," Philippine Journal of Development PJD 2002 Vol. XXIX No. 2-, Philippine Institute for Development Studies.
    5. repec:phd:dpaper:dp_2014-34 is not listed on IDEAS

    More about this item

    Keywords

    Philippines; Unemployment; employment; wage; minimum wage; unemployment rate; Demand and Supply of Labor: General; Unemployment: Models; Duration; Incidence; and Job Search; Phillipines;

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