Analyzing the impact of shifts in labor demand on the inter-industry wage differentials in the Philippines

• Main Authors: Ples, Ivan, Ramchandnan, Krishna, Velasco, Halecxandra
• Format: text
• Language: English
• Published: Animo Repository 2013
• Subjects: Labor demand > Philippines; Wage differentials > Philippines; Economic Theory
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/10153
• Institution: De La Salle University

A study by Dr. Michael Alba examined the behavior of inter-industry wage differentials in the Philippines during the years 1988-1992. The results of the study show that despite controling for the differences in individual characteristics such as educational, demographic, and locational factors, wage differentials across industries still persisted in the given periods of study. Through the years, numerous studies and data show that the Philipines had been transitioning from an agricultural society towards a services-oriented economy. The researchers aim to build upon the study of Dr. Michael Alba by providing a new perspective on inter-industry wage differentials as caused by the shifts in labor demand due to the said transition. Results of the study suggest that the inter-industry wage differentials do exist. The Compulsary Social Security Public Administration & Defense, Education, Health and Social work are found to be high-paying industries during the years 2001-2005.