IDEAS home Printed from https://ideas.repec.org/p/phs/dpaper/200403.html
   My bibliography  Save this paper

“Successes” and Adjustment in the Philippine Labor Market

Author

Listed:
  • Gerardo P. Sicat

    (School of Economics, University of the Philippines Diliman)

Abstract

A high degree of unemployment and underemployment characterizes the Philippine economic development record. In large part, the mainstream labor policies that emphasized high labor welfare standards and high minimum manages over the creation of employment are responsible for this outcome. In spite of this poor record of employment generation, some successes have been achieved in generating jobs and incomes in specific areas of industry and services. Focusing on these successes gives an insight on what works well. These “successes” in employment and income creation represent a common thread: they try to avoid the jurisdiction of the mainstream labor market policies or they are efforts of firms to adjust to the labor policies within the law to avoid their worst effects on cost and efficiency. The successes that are discussed in this essay are the following: the overseas contract workers; employment of labor in export processing zones; market for professionals among multinational companies; labor employment in the information technology sector; and domestic outsourcing of labor services and manufacturing. In an open economy, the country benefits from outsourcing by taking jobs away from high wage centers to the country. The same pattern of outsourcing happens when firms in the country forsake the country to transfer of their mainline operations in other countries to take advantage of lower wage costs. The main lesson from this paper is to point towards the need to reform the country’s labor market policies so that they attain a higher degree of flexibility.

Suggested Citation

  • Gerardo P. Sicat, 2004. "“Successes” and Adjustment in the Philippine Labor Market," UP School of Economics Discussion Papers 200403, University of the Philippines School of Economics.
  • Handle: RePEc:phs:dpaper:200403
    as

    Download full text from publisher

    File URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/112/106
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gerardo P. Sicat, 2004. "Reforming the Philippine Labor Market," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 41(2), pages 1-36, December.
    2. Gerardo P. Sicat, 2004. "Reforming the Philippine Labor Market," UP School of Economics Discussion Papers 200404, University of the Philippines School of Economics.
    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. Sy, Deborah Kim & Hosoe, Nobuhiro, 2023. "Consequences of a minimum wage increase in a migrant-sending country," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1057-1066.
    2. Campos, Nauro F. & Nugent, Jeffrey B., 2012. "The Dynamics of the Regulation of Labor in Developing and Developed Countries since 1960," IZA Discussion Papers 6881, Institute of Labor Economics (IZA).
    3. Sy, Deborah Kim & Hosoe, Nobuhiro, 2022. "Intended and Unintended Impacts of Minimum Wage Change: A Computable General Equilibrium Model Analysis with Cross-border Labor Mobility in the Philippines," Conference papers 333454, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Deborah Kim Sy & Nobuhiro Hosoe, 2022. "Intended and Unintended Impacts of Minimum Wage Change: The Pivotal Role of Migration in the Philippines," GRIPS Discussion Papers 22-08, National Graduate Institute for Policy Studies.
    5. Son, Hyun, 2008. "Explaining Growth and Inequality in Factor Income: The Philippines Case," ADB Economics Working Paper Series 120, Asian Development Bank.

    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:phs:dpaper:200403. 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: RT Campos (email available below). General contact details of provider: https://edirc.repec.org/data/seupdph.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.