IDEAS home Printed from https://ideas.repec.org/p/jic/wpaper/103.html
   My bibliography  Save this paper

The Effect of Disability and Gender on Returns to the Investment in Education: A Case from Metro Manilla of the Philippines

Author

Listed:
  • Lamichhane, Kamal
  • Watanabe, Takayuki

Abstract

In this paper, we investigate the effect of gender on returns to the investment in education for men and women with disabilities in Metro Manila of the Philippines. By using a unique dataset of persons with hearing, physical and visual impairments, we employ three methodological strategies on earning functions, including continuous and discontinuous functions and quantile regression to reveal the effects of gender within disabilities. Our estimation suggests that women with disabilities face several disadvantages in the labor markets of the Philippines where gender equality in general is observed for women without disabilities. After controlling for a sample selection to account for endogenous labor participation, as well as endogeneity of schooling decisions, the estimated rate of returns to education is very high, ranging from 24.9 to 38.4%. However, when classifying each disability dummy variable for each gender, the effect of double disadvantage (gender and disability) is observable. Additionally, checking the possibility of nonlinear schooling returns, we also find that the effect of disability for women is more severe than for their male counterparts. From these findings, we cannot reject the possibility that obtaining a diploma serves signaling as their ability level for women with disabilities.

Suggested Citation

  • Lamichhane, Kamal & Watanabe, Takayuki, 2015. "The Effect of Disability and Gender on Returns to the Investment in Education: A Case from Metro Manilla of the Philippines," Working Papers 103, JICA Research Institute.
    • Handle: RePEc:jic:wpaper:103
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10685/166
    Download Restriction: no
    File URL: https://jicari.repo.nii.ac.jp/?action=repository_uri&item_id=755&file_id=9&file_no=1
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Aysit Tansel & Fatma Bircan Bodur, 2012. "Wage Inequality and Returns to Education in Turkey: A Quantile Regression Analysis," Review of Development Economics, Wiley Blackwell, vol. 16(1), pages 107-121, February.
    2. Norbert R. Schady, 2003. "Convexity and Sheepskin Effects in the Human Capital Earnings Function: Recent Evidence for Filipino Men," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(2), pages 171-196, May.
    3. Newey, Whitney K., 1987. "Efficient estimation of limited dependent variable models with endogenous explanatory variables," Journal of Econometrics, Elsevier, vol. 36(3), pages 231-250, November.
    4. Martins, Pedro S. & Pereira, Pedro T., 2004. "Does education reduce wage inequality? Quantile regression evidence from 16 countries," Labour Economics, Elsevier, vol. 11(3), pages 355-371, June.
    5. George Psacharopoulos & Harry Anthony Patrinos, 2004. "Returns to investment in education: a further update," Education Economics, Taylor & Francis Journals, vol. 12(2), pages 111-134.
    6. Mizunoya, Suguru & Mitra, Sophie, 2013. "Is There a Disability Gap in Employment Rates in Developing Countries?," World Development, Elsevier, vol. 42(C), pages 28-43.
    7. Hungerford, Thomas & Solon, Gary, 1987. "Sheepskin Effects in the Returns to Education," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 175-177, February.
    8. World Bank, 2011. "World Development Report 2011 [Rapport sur le développement dans le monde 2011 : Conflits, sécurité et développement - Abrégé]," World Bank Publications - Books, The World Bank Group, number 4389.
    9. Asadullah, M. Niaz, 2009. "Returns to private and public education in Bangladesh and Pakistan: A comparative analysis," Journal of Asian Economics, Elsevier, vol. 20(1), pages 77-86, January.
    10. Lamichhane, Kamal & Ballabha, Damaru & Kartika, Diana, 2014. "Analysis of Poverty between People with and without Disabilities in Nepal," Working Papers 77, JICA Research Institute.
    11. O. Ashenfelter & D. Card (ed.), 1999. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 3, number 3.
    12. Geeta Gandhi Kingdon, 1998. "Does the labour market explain lower female schooling in India?," Journal of Development Studies, Taylor & Francis Journals, vol. 35(1), pages 39-65.
    13. Heckman, James J. & Lochner, Lance J. & Todd, Petra E., 2006. "Earnings Functions, Rates of Return and Treatment Effects: The Mincer Equation and Beyond," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 1, chapter 7, pages 307-458, Elsevier.
    14. Julie L. Hotchkiss, 2003. "The Labor Market Experience of Workers with Disabilities: The ADA and Beyond," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number lmewd, December.
    15. Kevin Hollenbeck & Jean Kimmel, 2008. "Differences in the Returns to Education for Males by Disability Status and Age of Disability Onset," Southern Economic Journal, John Wiley & Sons, vol. 74(3), pages 707-724, January.
    16. Blau, Francine D & Kahn, Lawrence M, 1992. "The Gender Earnings Gap: Learning from International Comparisons," American Economic Review, American Economic Association, vol. 82(2), pages 533-538, May.
    17. Mohammad Niaz Asadullah (SKOPE, Department of Economics), "undated". "Returns to Education in Bangladesh," QEH Working Papers qehwps130, Queen Elizabeth House, University of Oxford.
    18. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863, Elsevier.
    19. Deon Filmer, 2008. "Disability, Poverty, and Schooling in Developing Countries: Results from 14 Household Surveys," The World Bank Economic Review, World Bank, vol. 22(1), pages 141-163, January.
    20. Yamauchi, Futoshi & Tiongco, Marites, 2013. "Why women are progressive in education? Gender disparities in human capital, labor markets, and family arrangement in the Philippines," Economics of Education Review, Elsevier, vol. 32(C), pages 196-206.
    21. Jonna P. Estudillo & JAgnes R. Quisumbing & JoKeijiro Otsuka, 2001. "Gender Differences in Land Inheritance and Schooling Investments in the Rural Philippines," Land Economics, University of Wisconsin Press, vol. 77(1), pages 130-143.
    22. Braithwaite , Jeanine & Mont , Daniel, 2008. "Disability and poverty : a survey of World Bank poverty assessments and implications," Social Protection Discussion Papers and Notes 42754, The World Bank.
    23. Thomas DeLeire, 2000. "The Wage and Employment Effects of the Americans with Disabilities Act," Journal of Human Resources, University of Wisconsin Press, vol. 35(4), pages 693-715.
    24. Behrman, Jere R & Wolfe, Barbara L, 1984. "The Socioeconomic Impact of Schooling in a Developing Country," The Review of Economics and Statistics, MIT Press, vol. 66(2), pages 296-303, May.
    25. Buchinsky, Moshe, 1994. "Changes in the U.S. Wage Structure 1963-1987: Application of Quantile Regression," Econometrica, Econometric Society, vol. 62(2), pages 405-458, March.
    26. Belman, Dale & Heywood, John S, 1991. "Sheepskin Effects in the Returns to Education: An Examination on Women and Minorities," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 720-724, November.
    27. Joshua D. Angrist & Alan B. Keueger, 1991. "Does Compulsory School Attendance Affect Schooling and Earnings?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 979-1014.
    28. Jaeger, David A & Page, Marianne E, 1996. "Degrees Matter: New Evidence on Sheepskin Effects in the Returns to Education," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 733-740, November.
    29. Xulia GonzÂlez & Daniel Miles, 2001. "Wage inequality in a developing country: decrease in minimum wage or increase in education returns," Empirical Economics, Springer, vol. 26(1), pages 135-148.
    30. Kana Fuse, 2010. "Variations in attitudinal gender preferences for children across 50 less-developed countries," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 23(36), pages 1031-1048.
    31. Kamal Lamichhane & Tomoo Okubo, 2014. "The Nexus between Disability, Education, and Employment: Evidence from Nepal," Oxford Development Studies, Taylor & Francis Journals, vol. 42(3), pages 439-453, September.
    32. Arrow, Kenneth J., 1973. "Higher education as a filter," Journal of Public Economics, Elsevier, vol. 2(3), pages 193-216, July.
    33. Mitra, Sophie & Sambamoorthi, Usha, 2008. "Disability and the Rural Labor Market in India: Evidence for Males in Tamil Nadu," World Development, Elsevier, vol. 36(5), pages 934-952, May.
    34. Dora L. Costa & Matthew E. Kahn, 2008. "Learning from the Past," NBER Chapters, in: Heroes and Cowards: The Social Face of War, National Bureau of Economic Research, Inc.
    35. Steven Stern, 1989. "Measuring the Effect of Disability on Labor Force Participation," Journal of Human Resources, University of Wisconsin Press, vol. 24(3), pages 361-395.
    36. World Bank, 2012. "World Development Report 2012 [Rapport sur le développement dans le monde 2012]," World Bank Publications - Books, The World Bank Group, number 4391.
    37. Monazza Aslam, 2009. "Education Gender Gaps in Pakistan: Is the Labor Market to Blame?," Economic Development and Cultural Change, University of Chicago Press, vol. 57(4), pages 747-784, July.
    38. Albert, Jose Ramon & Mori, Soya & Reyes, Celia & Tabuga, Aubrey & Yamagata, Tatsufumi, 2010. "Income disparity among persons with disabilities assessed by education and sex : findings from a field survey conducted in Metro Manila, the Philippines," IDE Discussion Papers 259, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lamichhane, Kamal & Sawada, Yasuyuki, 2013. "Disability and returns to education in a developing country," Economics of Education Review, Elsevier, vol. 37(C), pages 85-94.
    2. Serneels, Pieter & Beegle, Kathleen & Dillon, Andrew, 2017. "Do returns to education depend on how and whom you ask?," Economics of Education Review, Elsevier, vol. 60(C), pages 5-19.
    3. Kamal Lamichhane & Takayuki Watanabe, 2023. "Intersection of Gender and Disability on Returns to Education: A Case from Metro Manila, Philippines," Merits, MDPI, vol. 3(4), pages 1-18, November.
    4. Moura, Rodrigo Leandro, 2008. "Testando as Hipóteses do Modelo de Mincer para o Brasil," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 62(4), December.
    5. Balestra, Simone & Backes-Gellner, Uschi, 2017. "Heterogeneous returns to education over the wage distribution: Who profits the most?," Labour Economics, Elsevier, vol. 44(C), pages 89-105.
    6. Justin L. Tobias, 2003. "Are Returns to Schooling Concentrated Among the Most Able? A Semiparametric Analysis of the Ability–earnings Relationships," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(1), pages 1-29, February.
    7. Habermalz, Steffen, 2003. "Job Matching and the Returns to Educational Signals," IZA Discussion Papers 726, Institute of Labor Economics (IZA).
    8. Polachek, Solomon W., 2008. "Earnings Over the Life Cycle: The Mincer Earnings Function and Its Applications," Foundations and Trends(R) in Microeconomics, now publishers, vol. 4(3), pages 165-272, April.
    9. Daeheon Choi & Chune Young Chung & Ha Truong, 2019. "Return on Education in Two Major Vietnamese Cities," Sustainability, MDPI, vol. 11(18), pages 1-30, September.
    10. Olfindo, Rosechin, 2018. "Diploma as signal? Estimating sheepskin effects in the Philippines," International Journal of Educational Development, Elsevier, vol. 60(C), pages 113-119.
    11. Zhimin Liu & Aftab Ahmed Memon & Woubshet Negussie & Haile Ketema, 2020. "Interpreting the Sustainable Development of Human Capital and the Sheepskin Effects in Returns to Higher Education: Empirical Evidence from Pakistan," Sustainability, MDPI, vol. 12(6), pages 1-16, March.
    12. Nick Huntington-Klein, 2021. "Human capital versus signaling is empirically unresolvable," Empirical Economics, Springer, vol. 60(5), pages 2499-2531, May.
    13. Melissa Clark & David Jaeger, 2006. "Natives, the foreign-born and high school equivalents: new evidence on the returns to the GED," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(4), pages 769-793, October.
    14. Ana Ferrer & W. Craig Riddell, 2008. "Education, credentials, and immigrant earnings," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 41(1), pages 186-216, February.
    15. Daniel J. Henderson & Andrew Houtenville & Le Wang, 2017. "The Distribution of Returns to Education for People with Disabilities," Journal of Labor Research, Springer, vol. 38(3), pages 261-282, September.
    16. Maria Manuel Campos & Hugo Reis, 2018. "Returns to schooling in the Portuguese economy: a reassessment," Public Sector Economics, Institute of Public Finance, vol. 42(2), pages 215-242.
    17. James J. Heckman & Lance J. Lochner & Petra E. Todd, 2008. "Earnings Functions and Rates of Return," Journal of Human Capital, University of Chicago Press, vol. 2(1), pages 1-31.
    18. Chen, Jie & Kanjilal-Bhaduri, Sanghamitra & Pastore, Francesco, 2022. "Updates on Returns to Education in India: Analysis Using PLFS 2018-19 Data," IZA Discussion Papers 15002, Institute of Labor Economics (IZA).
    19. Mont, Daniel & Nguyen, Cuong, 2013. "Does Parental Disability Matter to Child Education? Evidence from Vietnam," World Development, Elsevier, vol. 48(C), pages 88-107.
    20. Tushar Agrawal, 2011. "Returns to education in India: Some recent evidence," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2011-017, Indira Gandhi Institute of Development Research, Mumbai, India.

    More about this item

    Keywords

    disability ; gender ; returns to education ; labor market participation ; earning functions ; Philippines;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jic:wpaper:103. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Japan International Cooperation Agency Library (email available below). General contact details of provider: https://edirc.repec.org/data/jicgvjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.