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Why is Unemployment High in the Philippines?

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  • Mr. R. 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

  • Mr. R. Brooks, 2002. "Why is Unemployment High in the Philippines?," IMF Working Papers 2002/023, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2002/023
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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

    as
    1. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173.
    2. Mr. Markus Rodlauer, 2000. "Philippines: Toward Sustainable and Rapid Growth," IMF Occasional Papers 2000/006, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

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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. Rafael Martin M. Consing & Angelo Jose B. Lumba & Julian Thomas B. Alvarez, 2018. "Linking Inflation Differential Across Regions to Unemployment in the Philippines," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 6(3), pages 356-373, September.
    3. Daniel Suryadarma & Asep Suryahadi & Sudarno Sumarto, 2007. "Measuring Unemployment in Developing Countries: The Case of Indonesia," LABOUR, CEIS, vol. 21(3), pages 541-562, September.
    4. King, Elisa B., 2007. "Making sense of the failure of rapid industrialisation in the Philippines," Technology in Society, Elsevier, vol. 29(3), pages 295-306.
    5. repec:phd:pjdevt:pjd_2002_vol__xxix_no__2-d is not listed on IDEAS
    6. Briones, Roehlano M., 2013. "Agriculture, Rural Employment, and Inclusive Growth," Discussion Papers DP 2013-39, Philippine Institute for Development Studies.
    7. repec:phd:dpaper:dp_2014-34 is not listed on IDEAS
    8. Daniel Suryadarma & Asep Suryahadi & Sudarno Sumarto, . "Measuring Unemployment in Developing Countries: The Case of Indonesia," Journal Article, Publications Department.

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