Self-selection BIAS as a determinant of inter-industry wage differentials in the Philippines

• Main Authors: Bernabe, Justine Arianne, Carpio, Jonathan Leo, Francisco, Angelo, Salas, Maria Patricia
• Format: text
• Language: English
• Published: Animo Repository 2010
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/14762
• Institution: De La Salle University

Previous research show that their industry wage differentials exists as a result of the differences in demographics, location and institutional characteristics of the labor. On the other hand, these variables are not enough to explain the existence of wage differentials. In this paper, using Hechman Selection Model proves that self selection, of the decision of workers to be employed in a specific industry will affect the level of inequality of wages in the industry level. Regression results have proved that levels of inter-industry wage differentials in the Philippines decreases when workers self select themselves in the industry. Thus, inter-industry wage differentials exist in the Philippines.