{
  "title": "The Agricultural Exodus in the Philippines: Are Wage Differentials Driving the Process?",
  "publication": "IMF Working Papers, August 20, 2021",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2021/08/20/the-agricultural-exodus-in-the-philippines-are-wage-differentials-driving-the-process-463355",
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  "summary": "Lagging labor reallocations outside agriculture amid sustained low agricultural productivity have been a key feature in the Philippines over the past 15 years. An analysis of the labor adjustments in and out of agriculture shows that a variety of factors have influenced this process.",
  "sections": [
    {
      "heading": "Summary of main findings",
      "content": "- Lagging labor reallocations outside agriculture amid sustained low agricultural productivity have been a key feature in the Philippines over the past 15 years.\n- An analysis of labor adjustments in and out of agriculture shows a variety of factors have influenced the process.\n- Factors largely associated with growing outflows of labor from agriculture:\n  - Widening of wage differentials with non-agricultural sectors.\n  - Improvements in labor market efficiency.\n  - Better transport infrastructure.\n- Factors that hinder outflows of labor from agriculture:\n  - Lack of post-primary education.\n  - Presence of agricultural clusters.\n- The results contrast with the traditional view that agricultural employment outflows are largely driven by productivity differences and wage differentials; the study emphasizes the roles of education and transport infrastructure in facilitating labor reallocations from agriculture to non-agriculture."
    },
    {
      "heading": "Policy-relevant implications",
      "content": "- Addressing education gaps, particularly post-primary education, is likely important to facilitate labor reallocations from agriculture to non-agriculture.\n- Improving transport infrastructure can be an effective channel to support labor mobility out of agriculture.\n- Policies that enhance labor market efficiency may accelerate transitions of workers from agriculture to higher-productivity non-agricultural sectors.\n- Attention to agricultural clusters is needed to understand and mitigate localized impediments to labor outflows."
    },
    {
      "heading": "Subjects and keywords (as provided)",
      "content": "- Subject: Agricultural sector, Economic sectors, Education, Employment, Labor, Labor markets, Real wages\n- Keywords: Agricultural sector, agriculture performance, efficiency index, Employment, Global, job separation, labor adjustment, Labor markets, real wage wage differential, Real wages, time series trend\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2021/08/20/the-agricultural-exodus-in-the-philippines-are-wage-differentials-driving-the-process-463355"
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    "Authors: Eugenio M Cerutti, Yiliang Li",
    "Published: August 20, 2021",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781513590097.001",
    "Lagging labor reallocations outside agriculture amid sustained low agricultural productivity have been a key feature in the Philippines over the past 15 years.",
    "An analysis of labor adjustments in and out of agriculture shows a variety of factors have influenced the process.",
    "Factors largely associated with growing outflows of labor from agriculture:",
    "Factors that hinder outflows of labor from agriculture:",
    "The results contrast with the traditional view that agricultural employment outflows are largely driven by productivity differences and wage differentials; the study emphasizes the roles of education and transport infrastructure in facilitating labor reallocations from agriculture to non-agriculture.",
    "Addressing education gaps, particularly post-primary education, is likely important to facilitate labor reallocations from agriculture to non-agriculture.",
    "Improving transport infrastructure can be an effective channel to support labor mobility out of agriculture.",
    "Policies that enhance labor market efficiency may accelerate transitions of workers from agriculture to higher-productivity non-agricultural sectors.",
    "Attention to agricultural clusters is needed to understand and mitigate localized impediments to labor outflows.",
    "Subject: Agricultural sector, Economic sectors, Education, Employment, Labor, Labor markets, Real wages",
    "Keywords: Agricultural sector, agriculture performance, efficiency index, Employment, Global, job separation, labor adjustment, Labor markets, real wage wage differential, Real wages, time series trend",
    "**Working Paper**"
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