Why is Unemployment High in the Philippines?

Author/Editor:

R. Brooks

Publication Date:

February 1, 2002

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Unemployment has remained high in the Philippines, at almost twice the level of neighboring countries, despite relatively fast employment growth in the past decade. Employment growth was not sufficient to reduce unemployment because of rapid population growth and increased labor force participation. This paper shows that Philippine employment growth and unemployment declines were positively correlated with real GDP growth and, to a lesser extent, negatively with the real minimum wage. The key policy implications are that higher economic growth and moderation of increases in the real minimum wage are required to reduce unemployment.

Series:

Working Paper No. 2002/023

Subject:

Employment Labor Minimum wages Unemployment Unemployment rate

English

Publication Date:

February 1, 2002

ISBN/ISSN:

9781451844054/1018-5941

Stock No:

WPIEA0232002

Pages:

25

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