Why Do Minimum Wage Earners Stay in their Jobs?

Date

6-2023

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Maria Luisa G. Valera

Committee Member

Gideon P. Carnaje, Agham C. Cuevas

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

Previous studies have suggested that numerous factors, including socio-demographic and employment characteristics, affect labor market decisions faced by workers. This study intends to analyze the relevant factors that affect minimum wage workers' decisions to stay in their jobs. Usually, entry-level positions are the starting point of an individual's labor force participation, but in the case of minimum wage earners, it is what is suitable for their lack of skill sets. Given this, this study utilized secondary data of active and separated workers under Stronglink Services, Inc., wherein, through logistic regression, it aims to determine which employee individual and employer characteristics affect their decisions. Based on the data, it was found that such workers are employed in positions such as housekeeping aides, grounds maintenance crews, and packaging production crews, which are described as low-skilled labor. To analyze workers' characteristics , descriptive statistics were shown and analyzed. The results of the logistic regression show that age, educational attainment, tenure, and the size and location of employers significantly affect workers' decisions to stay in their jobs. The decision to stay or leave is further determined by their reservation wages. As minimum wage earners, they are expected to have low reservation wages, mainly because they are low-skilled workers, which makes them less selective about employment opportunities. Furthermore, since turnover is costly for employers, there should be retention programs that boost employee morale and productivity in the workplace to decrease turnover rates in the company.

Language

English

LC Subject

Wage rates, Employees, Decision making

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2023 E2 D38

Document Type

Thesis

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