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Inequality, Education, and Occupational Change in the Philippines. Policy Research Working Paper 11163

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Title: Inequality, Education, and Occupational Change in the Philippines. Policy Research Working Paper 11163
Language: English
Authors: Nadia Belhaj Hassine Belghith, Francine Claire Fernandez, Benjamin Aaron Lavin, World Bank
Source: World Bank. 2025.
Availability: World Bank Publications. 1818 H Street NW, Washington, DC 20433. Tel: 202-458-4500; Fax: 202-552-1500; Web site: http://www.worldbank.org/
Peer Reviewed: N
Page Count: 31
Publication Date: 2025
Document Type: Reports - Research
Descriptors: Foreign Countries, Poverty, Educational Attainment, Labor Market, Salary Wage Differentials, Education Work Relationship, Job Skills, Employment Patterns, Labor Force, Income
Geographic Terms: Philippines
Abstract: Despite significant progress in reducing poverty, the Philippines continues to face high inequality, which stayed elevated in the early 2000s as the economy grew. Although inequality has gradually declined since 2012, it remains among the highest in Southeast Asia. This paper examines how changes in education levels and occupational structure have shaped the wage distribution over the past two decades, particularly how changes in the relative supply of skills and the structure of employment have influenced wage gaps in recent years. Using two decades of labor force survey data, the paper examines the wage premium and the supply of skilled workers in the Philippines, finding that the slow growth in college-educated workers has sustained high wage premium for skilled workers. Unconditional quantile regressions reveal that returns to both college education and high-skill occupations increase monotonically over the wage distribution, contributing to the persistence of inequality. Changes in occupational structure have also influenced income distribution. Low- and middle-skilled jobs saw relative wage gains from 2002 to 2012, but middle-skilled occupations experienced the highest growth from 2012 to 2016--a key driver behind falling wage inequality. Employment trends followed a similar pattern, with middle-skilled job growth peaking in 2012-2016. Recent trends suggest a shift away from middle-skilled jobs, though it remains uncertain whether this reflects structural changes in the labor market or temporary disruptions.
Abstractor: As Provided
Entry Date: 2025
Accession Number: ED676625
Database: ERIC
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  Data: Inequality, Education, and Occupational Change in the Philippines. Policy Research Working Paper 11163
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  Data: <searchLink fieldCode="AR" term="%22Nadia+Belhaj+Hassine+Belghith%22">Nadia Belhaj Hassine Belghith</searchLink><br /><searchLink fieldCode="AR" term="%22Francine+Claire+Fernandez%22">Francine Claire Fernandez</searchLink><br /><searchLink fieldCode="AR" term="%22Benjamin+Aaron+Lavin%22">Benjamin Aaron Lavin</searchLink><br /><searchLink fieldCode="AR" term="%22World+Bank%22">World Bank</searchLink>
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  Data: World Bank Publications. 1818 H Street NW, Washington, DC 20433. Tel: 202-458-4500; Fax: 202-552-1500; Web site: http://www.worldbank.org/
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  Data: <searchLink fieldCode="DE" term="%22Foreign+Countries%22">Foreign Countries</searchLink><br /><searchLink fieldCode="DE" term="%22Poverty%22">Poverty</searchLink><br /><searchLink fieldCode="DE" term="%22Educational+Attainment%22">Educational Attainment</searchLink><br /><searchLink fieldCode="DE" term="%22Labor+Market%22">Labor Market</searchLink><br /><searchLink fieldCode="DE" term="%22Salary+Wage+Differentials%22">Salary Wage Differentials</searchLink><br /><searchLink fieldCode="DE" term="%22Education+Work+Relationship%22">Education Work Relationship</searchLink><br /><searchLink fieldCode="DE" term="%22Job+Skills%22">Job Skills</searchLink><br /><searchLink fieldCode="DE" term="%22Employment+Patterns%22">Employment Patterns</searchLink><br /><searchLink fieldCode="DE" term="%22Labor+Force%22">Labor Force</searchLink><br /><searchLink fieldCode="DE" term="%22Income%22">Income</searchLink>
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  Data: <searchLink fieldCode="DE" term="%22Philippines%22">Philippines</searchLink>
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  Data: Despite significant progress in reducing poverty, the Philippines continues to face high inequality, which stayed elevated in the early 2000s as the economy grew. Although inequality has gradually declined since 2012, it remains among the highest in Southeast Asia. This paper examines how changes in education levels and occupational structure have shaped the wage distribution over the past two decades, particularly how changes in the relative supply of skills and the structure of employment have influenced wage gaps in recent years. Using two decades of labor force survey data, the paper examines the wage premium and the supply of skilled workers in the Philippines, finding that the slow growth in college-educated workers has sustained high wage premium for skilled workers. Unconditional quantile regressions reveal that returns to both college education and high-skill occupations increase monotonically over the wage distribution, contributing to the persistence of inequality. Changes in occupational structure have also influenced income distribution. Low- and middle-skilled jobs saw relative wage gains from 2002 to 2012, but middle-skilled occupations experienced the highest growth from 2012 to 2016--a key driver behind falling wage inequality. Employment trends followed a similar pattern, with middle-skilled job growth peaking in 2012-2016. Recent trends suggest a shift away from middle-skilled jobs, though it remains uncertain whether this reflects structural changes in the labor market or temporary disruptions.
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      – Text: English
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      – SubjectFull: Foreign Countries
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      – SubjectFull: Poverty
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      – SubjectFull: Educational Attainment
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      – SubjectFull: Labor Market
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      – SubjectFull: Salary Wage Differentials
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      – SubjectFull: Education Work Relationship
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      – SubjectFull: Job Skills
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      – SubjectFull: Employment Patterns
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      – SubjectFull: Labor Force
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      – SubjectFull: Income
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      – SubjectFull: Philippines
        Type: general
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      – TitleFull: Inequality, Education, and Occupational Change in the Philippines. Policy Research Working Paper 11163
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