The Determinants of the Underemployment Gender Gap in the Philippines: A Decomposition Analysis

Added Title

DLSU-AKI POLICY BRIEF, 2023-12-021

Authors

John Ichiro Arbole, De La Salle University, ManilaFollow
Luisa Martina Gaston de la Paz, De La Salle University, ManilaFollow
Therese Genota, De La Salle University, ManilaFollow
Katrina Hernandez, De La Salle University, ManilaFollow
Lawrence B. Dacuycuy, De La Salle University, ManilaFollow
Maria Zunally Rapada, De La Salle University, ManilaFollow
Krista Danielle Yu, De La Salle University, ManilaFollow

College

School of Economics

Document Type

Policy Brief

Publication Date

12-2023

Place of Publication

DLSU-Angelo King Institute, Room 223, LS building, 2401 Taft Avenue, Manila 0922

Abstract

Underemployment is a prevalent labor market issue around the globe. It reflects how an individual can be employed but is unable to work to their desired number of hours, receive sufficient wages, or fully utilize their skills, leaving them in precarious working conditions. Studies on underemployment and its gendered impact in the Philippines remains limited with most labor studies primarily addressing wage and unemployment. This study addresses this gap by identifying the factors contributing to underemployment and gender-based inequalities in the Philippines. Using quarterly data from the Labor Force Survey from 2012 to 2021, we distinguished between visible and invisible underemployment based on the number of hours worked per week. To analyze the determinants of these two forms of underemployment, we employed a probit model with Heckman’s two-step sample correction that considers workers' individual, organizational, and social characteristics. We then executed an Oaxaca-Blinder decomposition to estimate the visible and invisible underemployment gender gap and its component. We found that men have a higher probability of visible and invisible underemployment compared to women primarily because of endowments in education and occupational choice, although there is evidence men are rewarded more in the labor market than women. One policy recommendation is to improve upskilling, reskilling, and education programs for workers, especially for highly vulnerable demographics such as less-educated rural male workers.

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Recommended Citation

Arbole, J., de la Paz, L. G., Genota, T., Hernandez, K., Dacuycuy, L. B., Rapada, M., & Yu, K. (2023). The Determinants of the Underemployment Gender Gap in the Philippines: A Decomposition Analysis. Retrieved from https://animorepository.dlsu.edu.ph/res_aki/179

Disciplines

Labor Economics | Public Economics

Keywords

Philippines; employment; labor market issues

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