Why is Unemployment High in the Philippines?

25 Pages Posted: 30 Jan 2006

See all articles by Ray Brooks

Ray Brooks

International Monetary Fund (IMF) - Asia and Pacific Department

Date Written: February 2002

Abstract

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.

Keywords: Philippines, unemployment, employment

JEL Classification: J20, J64

Suggested Citation

Brooks, Ray, Why is Unemployment High in the Philippines? (February 2002). Available at SSRN: https://ssrn.com/abstract=879369 or http://dx.doi.org/10.2139/ssrn.879369

Ray Brooks (Contact Author)

International Monetary Fund (IMF) - Asia and Pacific Department ( email )

700 19th Street NW
Washington, DC 20431
United States

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