Template-Type: ReDIF-Paper 1.0 Author-Name: Rosa Linda P. Tidalgo Author-Name-First: Rosa Linda Author-Name-Last: Tidalgo Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: A Review of Minimum Wage Fixing in the Philippines After World War II Abstract: This study looks at the minimum wage fixing in the Philippines after World War II. The rationale for such a wage policy is discussed, followed by a description of the guidelines observed in the setting of wage differentials in the legislations. Then the coverage and implementation of the minimum wage legislations are assessed. It also presents a theoretical framework for evaluating the impact of minimum wage fixing on employment, output, prices and incomes. The paper concludes with a proposal for an alternative wage policy for the Philippines. This review minimum wage-fixing in the Philippines exposes the general weakness of this wage policy in maintaining worker's income at subsistence level because it does not include the incomes of employers and price movements given the productivity changes at the firm level. In addition, the coverage of the wage policy has been limited and its implementation poor. Under these circumstances an alternative wage policy is proposed which takes cognizance of the relative sharing of income between the workers and the employers and which allows the two sectors to negotiate over the minimum wage and other wage supplements at the firm level. Creation-Date: 1983-01 Publication-Status: Published as UPSE Discussion Paper No. DP 1983-01, January 1983 Number: 198301 Handle: RePEc:phs:dpaper:198301 Template-Type: ReDIF-Paper 1.0 Author-Name: Edita A. Tan Author-Name-First: Edita Author-Name-Last: Tan Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Adjustment of the Labor Market to the Foreign Outflow of Skilled Labor : The Case of Construction Workers Abstract: The paper is an exploratory study of labor market adjustment to the outflow of construction workers. It argues that the ease with which the market adjust to out-migration or to any change in demand of any skill depends on the cost of acquiring training for and the relative abundance of inherent talent and aptitude by the skill. The shorter the training period, the less costly the training inputs and the more abundant the manpower qualified for the skill, the quicker the adjustment. Migration may pose a problem in the case of high-level manpower such as scientists, professor, entrepreneurs and managers. They are difficult to replace since the supply of manpower of suitable aptitude and intelligence for these occupations is relatively small in any population. Moreover, their training is relatively long and requires expensive educational inputs. The current composition of migrating labor, construction workers, nurses, seamen and domestic help, is not problematic in this respect. They are of average ability and their training cost is not particularly high. The study bears out the expected easy adjustment. The rapid outflow of manpower in these occupations has been matched by an equally rapid production of the corresponding skill. The construction industry, for instance, experienced persistently high unemployment despite the migration. The yearly entry of labors more than offsets the outflow. The production of nurses and seamen in colleges and universities grew rapidly as a response to foreign market opportunities. The Philippine labor market as a whole shows great flexibility in the supply of labor with inexpensive training. The study conducted a small survey of construction workers in six construction sites in Metro Manila to obtain information on the responsiveness of supply to foreign market demand and the vacancies created by the outgoing workers. It asked questions on where workers get their training, length of training period from one skill level to another (unskilled to middle level to master craftsman), geographic mobility, occupational mobility and unemployment experienced in the last two years. The study shows that more than 90 percent of the sample relies on on-the-job and other nonformal sources of training; that the training period is fairly short except for the master craftsman level (two to five years) and that there is a fair degree of geographic and occupational movement. All these indicate a flexible supply of workers for construction and support the aggregate statistics showing large yearly increment of labor force in the industry. The study concludes that there need not be cause for serious concern about the replacement of outgoing workers since they are easily replaced. There is, however, a tendency for the better qualified and the more experienced workers to be selected for foreign jobs. This can lead to deterioration of quality of the workers left behind. Creation-Date: 1983-02 Publication-Status: Published as UPSE Discussion Paper No. 1983-02, February 1983 Number: 198302 Handle: RePEc:phs:dpaper:198302 Template-Type: ReDIF-Paper 1.0 Author-Name: Romeo M. Bautista Author-Name-First: Romeo Author-Name-Last: Bautista Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Industrial Policy and Development in the ASEAN Countries Abstract: This paper describes the evolution of industrial policy and development in each of the ASEAN countries, indicating also the general thrusts of recent industrial promotion policies in the region. Because trade policies form a part, and in the context of the ASEAN countries a major part, of the overall policy climate affecting the performance of manufacturing industries, the discussion of industrial policy inevitably includes the incentive effects of foreign trade regimes adopted. The discussion then shifts to the Korean industrialization experience from which some lessons are drawn that could provide guidance for ASEAN policymakers. This is followed by an examination of potential areas for industrial complementary and trade expansion between the ASEAN and the Asian NICs, given the rising protectionism in the industrialized countries. The paper ends with some general remarks on the possibilities for promoting mutually beneficial development through trade in manufactures among the NICs and the "near-NICs" (including the ASEAN countries) under the constraint for continuing restrictions in access to industrialized country markets. Creation-Date: 1983-03 Publication-Status: Published as UPSE Discussion Paper No. 1983-03, March 1983 Number: 198303 Handle: RePEc:phs:dpaper:198303 Template-Type: ReDIF-Paper 1.0 Author-Name: Rolando A. Danao Author-Name-First: Rolando Author-Name-Last: Danao Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Regression by Minimum Sum of Absolute Errors : Some Results Abstract: In the multiple regression model y= xƒÒ + ƒÕ, the coefficient vector ƒÒ may be estimated by minimizing the sum of absolute errors (MSAE). This papers shows the following results under MSAE estimation: (1) If k coefficient ƒÒj are nonzeros, then the estimated regression equation accurately predicts at least k observations; (2) As in the case of least squares regression, ƒÒ has an infinite number of estimates in the presence of perfect multicollinearity. Creation-Date: 1983-04 Publication-Status: Published as UPSE Discussion Paper No. 1983-04, April 1983 Number: 198304 Handle: RePEc:phs:dpaper:198304 Template-Type: ReDIF-Paper 1.0 Author-Name: Ernesto M. Pernia Author-Name-First: Ernesto Author-Name-Last: Pernia Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: An Economic and Social Impact Analysis of Small Industry Promotion Abstract: Small-scale industry (SI) promotion became a prominent policy instrument in developing countries during the 70s and will probably maintain such prominence in the 80s. In the Philippines a major SI promotion program was initiated in 1974 by the Ministry of Industry. In this paper, an attempt is made to evaluate the impacts of SI promotion on various economic and social development concerns. The results of the analysis seem to lend credence to the policy of fostering small enterprises. Although some of the popular claims about their contribution to development goals may be overstated, there is an indication that public policy support for small industry development in the regions/provinces is worthwhile because it apparently makes a difference with respect to socioeconomic concerns. Intuitively, the promotion cost seems modest although, as with project benefits, it has to be compared with the costs of other government development projects. On the whole, a method that combines quantitative and qualitative survey data for economic and social impact analysis has something to recommend itself. Needless to say, the ways in which the surveys were designed and conducted for this study leave some rooms for improvement. Given the lessons of experience, such improvement should be gained in a next empirical application of the method suggested in this paper. Creation-Date: 1983-04 Publication-Status: Published as UPSE Discussion Paper No. 1983-05, April 1983 Number: 198305 Handle: RePEc:phs:dpaper:198305 Template-Type: ReDIF-Paper 1.0 Author-Name: Eli M. Remolona Author-Name-First: Eli Author-Name-Last: Remolona Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Specifying Seigniorage for Time Consistency Abstract: It is shown that the traditional specification of the revenue form money creation implies a retroactive inflation tax and leads to time inconsistency in monetary policy. The specification that leads to time consistency turns out to be Auernheimer s "honest government" seigniorage revenue. Creation-Date: 1983-05 Publication-Status: Published as UPSE Discussion Paper No. 1983-06, May 1983 Number: 198306 Handle: RePEc:phs:dpaper:198306 Template-Type: ReDIF-Paper 1.0 Author-Name: Jose Encarnacion, Jr. Author-Name-First: Jose Author-Name-Last: Encarnacion, Jr. Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Portfolio Choice and Risk Abstract: Risk aversion and the riskiness of assets are interpreted in terms of a model of portfolio choice where the maximand is conditional on the probability of satisfying a minimum constraint on the future value of the portfolio. It is a consequence that the riskiness of the average asset in the portfolio increases with wealth, and when expected value is the maximand, low-risk low-return assets are inferior goods. The model also gives straightforward explanations of the Allais paradox and other puzzling patterns of choice under risk. Creation-Date: 1983-06 Publication-Status: Published as UPSE Discussion Paper No. 1983-07, June 1983 Number: 198307 Handle: RePEc:phs:dpaper:198307 Template-Type: ReDIF-Paper 1.0 Author-Name: Toshiyuki Mizoguchi Author-Name-First: Toshiyuki Author-Name-Last: Mizoguchi Title: Philippine Economic Time Series Data Base (PETIDAS)---Its Contents and Packaged Programmes Abstract: This paper explains the structure and the use of an economic time series on Philippines that I constructed at the University of the Philippines' School of Economics. A small program package suitable for use with a minicomputer both on a BATCH or on ON-LINE system was designed and the initial data, consisting of the more important time series data, was written into tape. The package includes software to maintain, update, and perform calculations and statistical procedures on the database. Creation-Date: 1983-07 Publication-Status: Published as UPSE Discussion Paper No. 1983-08, July 1983 Number: 198308 Handle: RePEc:phs:dpaper:198308 Template-Type: ReDIF-Paper 1.0 Author-Name: Romeo M. Bautista Author-Name-First: Romeo Author-Name-Last: Bautista Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Determinants of Inflation in the Philippines Abstract: This paper examines the various influences on general price movements in the Philippines since 1965. Model of inflation for small, open economies is developed to serve as the framework of analysis. Based on the regression results, the major determinants of past CPI increases are identified and some implications of the findings briefly discussed. Creation-Date: 1983-08 Publication-Status: Published as UPSE Discussion Paper No. 1983-09, August 1983 Number: 198309 Handle: RePEc:phs:dpaper:198309 Template-Type: ReDIF-Paper 1.0 Author-Name: Raul V. Fabella Author-Name-First: Raul Author-Name-Last: Fabella Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Some Well-Behaved Composition Functions Involving Nonconcave Argument Functions Abstract: Quasi-concavity is the criterion for well-behaveness in our composition functions. Negishi (1963) has shown how to generate quasi-concave composition functions when the argument functions are concave. We show here that one can generate quasi-concave composition functions even when the argument functions are nonconcave. The trick is to find interesting and "compatible" subfamilies in the quasi-concave family that, in composition, compensate for non-concavity of the argument functions and as a result keep the composition function within the quasi-concave family. Creation-Date: 1983-10 Publication-Status: Published as UPSE Discussion Paper No. 1983-10, October 1983 Number: 198310 Handle: RePEc:phs:dpaper:198310 Template-Type: ReDIF-Paper 1.0 Author-Name: Jose Encarnacion, Jr. Author-Name-First: Jose Author-Name-Last: Encarnacion, Jr. Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Arbitration and Group Decision Under Uncertainty Abstract: Assuming that the parties to a conflict have lexicographic preference, an arbitration model is formulated whose solution is fair in the sense that if it is not arbitrary. The solution, which is simply an extension of the idea of Patero optimality to the multidimensional utility case, satisfies four conditions analogous to those of Nash for a beginning problem, and it is the only solution that does so. It also applies to the group decision problem under uncertainly, permitting different individual preference orderings and different subjective probability judgements. Creation-Date: 1983-11 Publication-Status: Published as UPSE Discussion Paper No. 1983-11, November 1983 Number: 198311 Handle: RePEc:phs:dpaper:198311 Template-Type: ReDIF-Paper 1.0 Author-Name: Gerardo P. Sicat Author-Name-First: Gerardo Author-Name-Last: Sicat Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: A Survey of Materials in Introductory Economic Education Abstract: This is a survey of material used in Elementary Economics in Philippine education, mainly those in introductory economics in college. The materials used in secondary schools are also surveyed. Some books prepared for secondary schools have had some dual used in the elementary economics course in the college level. The materials cover only those textbooks available before May 1983. In general, the textbook situation in Economics has been in an unsatisfactory state and therefore can stand immense improvement. This conclusion may be true not only in Economics but also in the other social sciences, since it seems that Economics is at least in a relatively shape insofar as textbooks are concerned. The study makes an effort to explain, in the last part, the economics of the textbook market. Suggestions are made in the concluding remarks on how to improve the supply of textbooks in general. Creation-Date: 1983-12 Publication-Status: Published as UPSE Discussion Paper No. 1983-12, December 1983 Number: 198312 Handle: RePEc:phs:dpaper:198312