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Services Liberalization and Wage Inequality in the Philippines

Author

Listed:
  • Amoranto, Glenita

    (Asian Development Bank)

  • Brooks, Douglas H.

    (Asian Development Bank)

  • Chun, Natalie

    (Asian Development Bank)

Abstract

This paper examines the impact on employment and wages of liberalization in selected services subsectors (banking, distribution, and telecommunications) in the Philippines from 1991 to 2004. On the assumption that value-added effects arise from service liberalization that subsequently increase productivity in other sectors and influence changes in average wages across industries, results indicate that liberalization may have potentially harmed more vulnerable populations that are less educated, and created greater opportunities for employment in good jobs for higher-skilled males relative to females. This suggests the need for policies to support education, as the Philippine economic structure shifts away from primary and secondary sector production, which typically requires a higher skilled and more educated labor force. Greater disaggregation of the data along the lines of gender, education, occupation, and employment status highlights the usefulness of careful policy analysis in designing programs to redress distributional imbalances that accompany liberalization and structural transformation.

Suggested Citation

  • Amoranto, Glenita & Brooks, Douglas H. & Chun, Natalie, 2010. "Services Liberalization and Wage Inequality in the Philippines," ADB Economics Working Paper Series 239, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0239
    as

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    References listed on IDEAS

    as
    1. Milo, Melanie S. & Pasadilla, Gloria, 2005. "Effect of Liberalization on Banking Competition," Discussion Papers DP 2005-03, Philippine Institute for Development Studies.
    2. Nora Dihel & Ben Shepherd, 2007. "Modal Estimates of Services Barriers," OECD Trade Policy Papers 51, OECD Publishing.
    3. Pasadilla, Gloria, 2004. "Prospects of Services Trade Liberalization in Japan-RP Bilateral Agreement," Discussion Papers DP 2004-08, Philippine Institute for Development Studies.
    4. Patalinghug, Epictetus & Llanto, Gilberto M., 2005. "Competition Policy and Regulation in Power and Telecommunications," Discussion Papers DP 2005-18, Philippine Institute for Development Studies.
    5. Pinelopi Koujianou Goldberg & Nina Pavcnik, 2007. "Distributional Effects of Globalization in Developing Countries," Journal of Economic Literature, American Economic Association, vol. 45(1), pages 39-82, March.
    6. Epictetus E. Patalinghug & Gilberto M. Llanto, 2005. "Competition Policy and Regulation in Power and Telecommunications," Microeconomics Working Papers 22048, East Asian Bureau of Economic Research.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    employment; liberalization; Philippines; services subsectors; wages;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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