Labor Underutilization in the Philippines: A Broader View and Determinants

Date

6-2023

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Gideon P. Carnaje

Committee Member

Ma. Nova R. Nguyen, Agham C. Cuevas

Abstract

This study used the October 2021 Labor Force Survey to identify the factors affecting labor underutilization in the Philippines, using both narrow and broad measures of labor underutilization. Specifically, it presented a profile of labor underutilization (narrow and broad measures) in the Philippines and did a multivariate analysis on the determinants of labor underutilization in the Philippines.

The present study used alternative measures of labor underutilization specified by the International Labor Organization (ILO): LU1 (unemployment rate); LU2 (combined rate of time-related underemployment and unemployment); LU3 (combined rate of unemployment and potential labor force; and LU4 (a composite measure of labor underutilization). The LU1 is the narrowest measurement, while the LU4 is the broadest measure. The study also used time-related underemployment as a sole measure.

The study finds that rates of labor underutilization are much higher when LU2 and LU4 are used as measures of labor underutilization. In all measures of underutilization (LU1- LU4), higher educated workers are more likely to be underutilized than workers with no education. But if time-related underemployment is used as a sole measure, higher educated workers are less likely to be underutilized than workers with no education. In all measures of underutilization, including time-related underemployment as a sole measure, females are less likely to be underutilized than males. No definite pattern emerged on the effect of marital status and region on labor underutilization.

Language

English

LC Subject

Employment (Economic theory)

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2023 E2 R86

Notes

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Document Type

Thesis

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