Labor Market Dualism of Overseas Filipino Workers and its Effects on Philippine Income Disparity

Date

6-2024

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Dr. Jefferson A. Arapoc

Committee Member

Paul Joseph B. Ramirez, Gideon P. Carnaje, Maria Angeles O. Catelo

Restrictions

Restricted: Not available to the general public and to those bound by the confidentiality agreement. Access is available only after consultation with author/thesis adviser.

Abstract

This study examined the impact of dualism in the overseas labor market on regional income inequality in the Philippines using panel estimation techniques and reliability checks. The findings indicate that the recent influx of blue-collar workers has significantly reduced regional income disparity, as measured by both the Gini Coefficient and the Palma Ratio. This trend is particularly evident in regions such as Cagayan Valley and BARMM, which have sent a substantial portion of their workforce abroad as blue-collar workers, in contrast to wealthier regions like NCR, which predominantly sent white-collar workers.

By modifying the Gini Coefficient, the study assessed changes in the income share of the bottom 40% compared to the top 10% of each region's population. Key determinants of regional income disparity included education, GDP per capita, and labor market sentiments. The results consistently show the education and GDP per capita play crucial roles in reducing income inequality, whereas high underemployment levels exacerbate intergenerational inequality. The impact of inflation remains ambiguous, as the average inflation rate was not sufficiently high to significantly influence inequality.

The study highlights BARMM as an outliner, exhibiting low-income inequality despite high education inequality and a large proportion of blue-collar workers. Augmented panel estimations conducted by removing this outlier revealed no significant changes in the overall findings. Additionally, recent migration trends indicate a role reversal in occupational classifications, with women increasingly dominating physical labor roles, demonstration the feminization of transitional migrants in Philippine regions.

Language

English

LC Subject

Income distribution—Economic aspects, labor market, Dualism

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2024 E2 B34

Document Type

Thesis

This document is currently not available here.

Share

COinS