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: Migration, Remittances, Poverty and Inequality The Philippines Abstract: The paper looks into the effects of international migration and remittances on household incomes and well-being, poverty reduction, human capital investment, saving, and regional development in the home country. Remittances appear to raise average incomes for all income groups but more so for the richer households than for the poorer ones, a finding that is consistent with that in several Latin American countries. Such eyeballing of the data is supported by econometric analysis which further reveals that remittances enhance household savings, spending on education and health care, and help the poor move out of poverty. Analysis at the regional level shows that, ceteris paribus, remittances also appear to contribute importantly to regional development, although overall increases in regional incomes do not seem to benefit low income households as much as the upper income ones. Length: 26 pages Creation-Date: 2008-02 Publication-Status: Published as UPSE Discussion Paper No. DP 2008-01, February 2008 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/21/15 File-Format: Application/pdf Number: 200801 Handle: RePEc:phs:dpaper:200801 Template-Type: ReDIF-Paper 1.0 Author-Name: Felipe M. Medalla Author-Name-First: Felipe Author-Name-Last: Medalla Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Karl Robert L. Jandoc Author-Name-First: Karl Robert Author-Name-Last: Jandoc Title: Philippine GDP Growth After the Asian Financial Crisis : Resilient Economy or Weak Statistical System? Abstract: Official statistics from the National Income Accounts (NIA) in the Philippines depicts an economy that has grown faster after the Asian Financial Crisis (AFC). Although the higher growth of output after the AFC was accompanied by higher real growth rates of personal consumption and the service sector, NIA statistics also identifies import growth compression as the dominant factor in the expenditure side of the NIA that accounts for the rise in the growth rate of the economy after the AFC. In this respect, the Philippine experience is quite different from much of Asia where the growth rates of domestic absorption (C+I+G), exports and imports rose or fell in tandem with the growth of GDP. This paper takes the view that the uniqueness of the Philippines maybe more a reflection of the weakness of its national income accounting system than the resiliency of its economy. In the first place, many trends within the NIA itself and data from FIES raise doubts regarding the supposed rise in the growth rate of personal consumption expenditures. There is also reason to believe that Agriculture may not be as robust, and that the growth of value added in palay and agriculture may have been overestimated. Data from the Monthly Integrated Survey of Selected Industries (MISSI) and Labor Force Surveys contradict the NIA’s estimate of manufacturing growth. In the Services Sector, where growth is inherently hard to measure and imputations of value added are made, Personal Services and Wholesale and Retail Trade account for two thirds of the increase in the sector’s contribution to the increase in GDP growth after the AFC. Given the weaknesses of the NIA and the fact that the trends in many other economic indicators outside the NIA seem to contradict it, it is very likely that GDP growth after the AFC (and after 2000 in particular) has been over-stated. Length: 35 pages Creation-Date: 2008-05 Publication-Status: Published as UPSE Discussion Paper No. 2008-02, May 2008 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/89/81 File-Format: Application/pdf Number: 200802 Handle: RePEc:phs:dpaper:200802 Template-Type: ReDIF-Paper 1.0 Author-Name: Raul V. Fabella Author-Name-First: Raul Author-Name-Last: Fabella Title: The Peso Appreciation and the Sustainability of Philippine Growth : Need We Worry? Abstract: no abstract Length: 17 pages Creation-Date: 2008-04 Publication-Status: Published as UPSE Discussion Paper No. 2008-03, April 2008 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/90/82 File-Format: Application/pdf Number: 200803 Handle: RePEc:phs:dpaper:200803 Template-Type: ReDIF-Paper 1.0 Author-Name: Benjamin E. Diokno Author-Name-First: Benjamin Author-Name-Last: Diokno Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: The Philippines : Fiscal Behavior In Recent History Abstract: The Philippine national government experienced large and unsustainable budget deficits in the 1980s. After a brief period of near balanced budget in the mid-1990s, large budget deficits have reemerged in recent years. But unlike the heavy fiscal imbalances in the early 1980s which were caused by large investment in public infrastructure and low tax effort, the return of large fiscal deficits in recent years was accompanied by falling tax effort and underspending for education, health and public infrastructure. With deficits rising and investment in human capital and public infrastructure deteriorating, an appropriate question is: what has caused the poor fiscal performance of the Philippines in recent years? Is it the result of unfortunate events, macroeconomic shocks or misdirected fiscal policy? Length: 50 pages Creation-Date: 2008-06 Publication-Status: Published as UPSE Discussion Paper No. 2008-04, June 2008 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/91/83 File-Format: Application/pdf Number: 200804 Handle: RePEc:phs:dpaper:200804 Template-Type: ReDIF-Paper 1.0 Author-Name: Emmanuel S. de Dios Author-Name-First: Emmanuel Author-Name-Last: de Dios Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Secular Morality and the University Abstract: Secular morality is implied in the University’s very founding, with roots dating back to the 18th century Enlightenment that informed both the defeated Philippine revolution and the political ideas of the American occupiers. Citing recent knowledge gained from behavioural games and evolutionary psychology, this paper discusses how a public morality that is secular, minimal, and libertarian, is both possible and desirable in a complex society. The paper then illustrates how such a morality can inform politics and public policy in such difficult issues as illegal gambling, contraception and abortion, and living-organ donation. The state university’s role in developing and strengthening the idea of secular morality is then discussed. Length: 22 pages Creation-Date: 2008-07 Publication-Status: Published as UPSE Discussion Paper No. 2008-05, July 2008 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/92/84 File-Format: Application/pdf Number: 200805 Handle: RePEc:phs:dpaper:200805 Template-Type: ReDIF-Paper 1.0 Author-Name: Emmanuel S. de Dios Author-Name-First: Emmanuel Author-Name-Last: de Dios Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Institutional Constraints on Philippine Growth Abstract: no abstract Length: 48 pages Creation-Date: 2008-07 Publication-Status: Published as UPSE Discussion Paper No. 2008-06, July 2008 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/93/85 File-Format: Application/pdf Number: 200806 Handle: RePEc:phs:dpaper:200806 Template-Type: ReDIF-Paper 1.0 Author-Name: Michael M. Alba Author-Name-First: Michael Author-Name-Last: Alba Title: Economic Models on the Motives behind Migrant Workers’ Remittances Abstract: no abstract Length: 27 pages Creation-Date: 2008-07 Publication-Status: Published as UPSE Discussion Paper No. 2008-07, July 2008 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/94/86 File-Format: Application/pdf Number: 200807 Handle: RePEc:phs:dpaper:200807 Template-Type: ReDIF-Paper 1.0 Author-Name: Joseph J. Capuno Author-Name-First: Joseph Author-Name-Last: Capuno Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Maria Melody S. Garcia Author-Name-First: Maria Melody Author-Name-Last: Garcia Author-Workplace-Name: University of Rome – Tor Vergata Title: Can information about local government performance induce civic participation? Evidence from the Philippines Abstract: The question of whether people are motivated to engage in civic activities once informed of their local government’s performance is relevant to decentralized governance. Applying propensity score matching technique on a unique household-level dataset from the Philippines, it is found that the knowledge of an index of local government performance has positive and statistically significant effects on the likelihood of membership in local organizations and participation in local projects. The estimated average treatment effects are robust to choice of comparison groups, matching algorithm and to possible effects of unobserved variables. Thus, transparency in local government activities can deepen citizenship. Length: 37 pages Creation-Date: 2008-08 Publication-Status: Published as UPSE Discussion Paper No. 2008-08, August 2008 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/95/87 File-Format: Application/pdf Number: 200808 Classification-JEL: D83, H70, C21 Handle: RePEc:phs:dpaper:200808 Template-Type: ReDIF-Paper 1.0 Author-Name: Stella A. Quimbo Author-Name-First: Stella Author-Name-Last: Quimbo Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Aleli D. Kraft Author-Name-First: Aleli Author-Name-Last: Kraft Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Joseph J. Capuno Author-Name-First: Joseph Author-Name-Last: Capuno Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Health, Education and the Household : Explaining Poverty Webs Abstract: In this paper, we examine the theory and evidence on the various linkages between poverty, health and education. We introduce the idea of poverty webs to highlight both the cycles and intricate pathways from adverse health and education conditions to poverty and back, within and across generations. The specific pathways considered are (i) labor productivity, (ii) quantity and quality of human capital investments, particularly health and education, and (iii) complementarities between human capital investments. These pathways are analyzed in the context of the household where the adult members typically decide on the critical human capital investments for the young members. Based on previous studies and data from the Philippines and other developing countries, we report evidence on the number of numerous ways by which health, education and poverty are correlated, whether these are intra- or inter-generational effects. Additional evidence of intergeneration transmission is presented using data from the Quality Improvement Demonstration Study (QIDS) on children under 5 years old residing in the central regions of the Philippines. Several policy implications are drawn, with emphasis placed on demand-side interventions that exploit the complementarities of health and education investments. Length: 52 pages Creation-Date: 2008-09 Publication-Status: Published as UPSE Discussion Paper No. 2008-09, September 2008 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/96/88 File-Format: Application/pdf Number: 200809 Handle: RePEc:phs:dpaper:200809 Template-Type: ReDIF-Paper 1.0 Author-Name: Ma. Cristina Fabella Author-Name-First: Ma. Cristina Author-Name-Last: Fabella Author-Workplace-Name: Amang Rodriguez Memorial Medical Center Title: Population Growth and Infant Mortality Abstract: The relationship between population growth and economic outcomes is an issue of great policy significance. In the era of the Millennium Development Goals, poverty and its correlates have become the compelling issues. Economic growth may not automatically translate into reductions in poverty and its correlates (may not trickle down) if income distribution is at the same time worsening. We therefore investigate the direct effect of population growth on infant mortality for various income categories of countries. We find that after controlling for other relevant influences, population growth robustly increases infant mortality five years later across income categories. The coefficient for population growth and its significance rise as we move from full sample to lower-income to low income categories. The adverse effect of population growth on infant survival thus rises as one moves from full sample, to lower-income to low-income categories. For low-income countries, the adverse effect of population growth emerges sooner, i.e., after two years. The study highlights the important, if delayed, contribution of population control programs to reduction in infant mortality and poverty. Length: 16 pages Creation-Date: 2008-09 Publication-Status: Published as UPSE Discussion Paper No. 2008-10, September 2008 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/97/89 File-Format: Application/pdf Number: 200810 Handle: RePEc:phs:dpaper:200810 Template-Type: ReDIF-Paper 1.0 Author-Name: Rana Hasan Author-Name-First: Rana Author-Name-Last: Hasan Author-Workplace-Name: Asian Development Bank Author-Name: Karl Robert L. Jandoc Author-Name-First: Karl Robert Author-Name-Last: Jandoc Author-Workplace-Name: Asian Development Bank and UP School of Economics Title: The quality of jobs in the Philippines : Comparing self-employment with wage employment Abstract: Analysis of labor force survey data from 1994 to 2007 reveals that the structure of the Philippines labor force has been changing in several important ways. One is the movement from self-employment, the most predominant form of employment, to wage employment across a wide range of production sectors. How does one evaluate this change in terms of workers’ earnings –arguably the most important element of job quality? Since labor force survey data do not provide information on earnings of the self-employed we combine information on household incomes (disaggregated by source) from the Family Income and Expenditure Survey (FIES) with information on household members’ employment related activities from the Labor Force Survey (LFS) to shed light on this question. We also examine broad trends in the structure for employment, wages, and earnings. Our findings suggest that the decline of self-employment is no bad thing. For the most part, the earnings and educational profiles of the self-employed are very similar to those of casual wage earners, and clearly dominated by those of permanent wage earners even when observable worker characteristics are controlled for. An implication is that the self-employed do not seem to be ‘capitalists in waiting’ as noted in recent literature. As self-employment gives way to wage employment, especially casual wage employment in the services sector, the key challenge for policy is tackling the slow growth of wages and earnings indicated by both LFS and FIES data. Length: 47 pages Creation-Date: 2008-09 Publication-Status: Published as UPSE Discussion Paper No. 2008-11, September 2008 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/98/90 File-Format: Application/pdf Number: 200811 Handle: RePEc:phs:dpaper:200811 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: Unlimited and Abundant Labor Supply : Econometric and Other Evidence in Philippine Industry Abstract: The paper examines the Philippine labor market by fitting a labor supply equation using detailed firm data from the survey of manufactures. The Philippines continues to have high rates of unemployment and underemployment amidst a continuously rising labor supply. The results of the econometric effort confirm the description of the economy as falling within the zone of abundant labor supply at best if not within in the unlimited zone of labor supply. Segregating the different sizes of firms as individual characteristics does not change the basic econometric finding. The study further incorporates the effects of specific industry groupings, of which some were at the 3-digit level of aggregation. Taking account of specific industry characteristics brings out some unique findings. Labor intensive export industries and some wage goods industries organized under large firms tend to be sensitive to movements in the wage rate. But these industry groups are the exception rather than the rule and the values of the statistically significant aggregate wage response coefficients are very low values and almost close to zero. The paper further analyzes the wage differentials among major occupational groups and the nature of labor supply among professionals and technicians that require the passing of state administered board examinations. In general, both types of analysis provide additional confirmation of the excess labor supply at the level of the educated work force. Length: 45 pages Creation-Date: 2008-10 Publication-Status: Published as UPSE Discussion Paper No. 2008-12, October 2008 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/99/91 File-Format: Application/pdf Number: 200812 Keywords: Labor market, Supply of labor, Philippine labor market, Philippine economy, Employment, Wage income, Occupational wage differentials Handle: RePEc:phs:dpaper:200812 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: Is Labor Export Good Development Policy? Abstract: Labor migration began to be promoted in the late 60s or early 70s by a number of Asian countries burdened by problems of unemployment, poverty, and scant foreign exchange. However, labor export was generally intended to be a stop-gap measure while governments were trying to implement policy reform to whip their economies into shape. Indeed, labor migration as policy has largely faded in many of our Asian neighbors but remains a major development policy plank in our country. What has made the Philippines specially cut out to be a labor exporter? What are the benefits and costs of migration? Is the export of labor sustainable? Are we content with being a labor exporter? Is there a need to rethink the country’s labor export policy? Length: 29 pages Creation-Date: 2008-10 Publication-Status: Published as UPSE Discussion Paper No. 2008-13, October 2008 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/100/92 File-Format: Application/pdf Number: 200813 Handle: RePEc:phs:dpaper:200813 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: Two Short Memoirs on the Development of Philippine Social Sciences Abstract: Two short memoirs are offered on the development of Philippine social sciences related to the contributions of two scholars. The first memoir is on Dr. Vernon W. Ruttan and the UP School of Economics during the 1960s. His contributions to the development of the UP School of Economics and of the Philippine economic profession as remembered here were incidental to his main work as the Chief Economist of the newly founded International Rice Research Institute in Los Banos, the Philippines. The second memoir is about Dr. Loretta Makasiar Sicat, political scientist, and the Philippine Social Science Council during the eventful decade from 1973 to 1984. During this period, the PSSC raised its profile and services and built a home for the social science societies in the country under private auspices with the support of the Philippine government and other major donors. Length: 13 pages Creation-Date: 2008-10 Publication-Status: Published as UPSE Discussion Paper No. 2008-13, October 2008 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/101/93 File-Format: Application/pdf Number: 200814 Keywords: Social Sciences, UP School of Economics, Philippine economics, History of social sciences in the Philippines Handle: RePEc:phs:dpaper:200814 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: Men and Women in the Philippine Work Place : A Supply of Labor Analysis Abstract: This paper deals with the supply of male and female labor in Philippine industry. Using unit record data from the Philippine survey of manufactures of 2005, a supply equation in which labor by sex of workers is estimated with the wage rate used as the explanatory variable. The results confirm the finding of this author’s other study of labor supply that the supply of labor is within the zones of unlimited and abundant labor supply as described in that paper. The wage rate – whether it is the wage bill as size indicator for the firm or that of wage rates for either male or female labor – is not a significant explanatory variable. External and institutional conditions are more important in indicating the level of wages that firms accept when they hire labor in industry. In the few situations where the wage rate helps to explain the supply of labor, its influence is of negligible impact. For male labor, there is a (weak) indication that female labor is more complementary as a labor factor. Male labor receives a higher average rate of pay compared to that of women, but the supply of male labor appears to be more directly related to the female wage. As female wages rise even by the smallest change, so would the rise in the supply of male labor. In the case of female labor, the presence of male labor appears more like a (weak) competitive presence so that there is a negative rate associated with female labor. Firms within specific size groups hire labor according to their labor requirements but the wage rate is not a significant determinant. Specific industry that requires large numbers of workers for their operations such as those in export manufacturing and those that produce wage are partly but not substantially affected by variations in the wage rate. The study also points out those industry groups that tend to favor male or female workers in their workforce. Length: 26 pages Creation-Date: 2008-11 Publication-Status: Published as UPSE Discussion Paper No. 2008-13, November 2008 File-URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/102/94 File-Format: Application/pdf Number: 200815 Keywords: Labor market, Female Labor, Male Labor, Philippine economy, Supply of labor Handle: RePEc:phs:dpaper:200815