Children and the Labor Force Participation and Earnings of Parents in the Philippines
Aniceto C. Orbeta, Jr. | June 2005
Abstract
How children affects the labor force participation and earnings of mothers and fathers can spell the difference on whether additional children can expect the needed care or not. When parents exert more effort with additional children, then their impact of on the welfare of the family will be mitigated. When the opposite happens, not only will additional children not get the needed support, they will also cause the deterioration of welfare of the other members of the household as resources are spread to more members. It is therefore important to quantify the impact of children on the work effort and earnings of their parents. Even though the average education of women in the Philippines is higher, their labor force participation is significantly lower than her Asian neighbors. One explanation that can be put forward is, of course, the inconsistent growth rate the country has been experiencing for a couple of decades now. Another, perhaps commonly forgotten reason, is that while her neighbors have successfully brought down their fertility rates, the Philippines has failed to reduced its fertility rate as fast as say Thailand, Indonesia and Viet Nam. The burden of many children can limit the ability of mothers to avail of work opportunities thus stalling the rise in the work uptake of Filipino women. This paper formulates and estimates a model of the determinants of the labor force participation and earnings of mothers and fathers with the number of children as one the explanatory variables that include individual, household and community characteristics. It uses the nationally representative 2002 Annual Poverty Indicators Survey in the analysis. This is one of the few papers that recognized and thoroughly tested the endogeneity of the children in these equations. This, however, did not produce positive results with the dataset used. This result lends support to the validity of using estimates that consider the number of children exogenous in the data set used for the study. The estimation generated rich results that provided quantitative estimates of the impact of children on the labor force participation and earnings of parents. The estimates point to a highly regressive impact of additional children on Philippine households.
Citation
Aniceto C. Orbeta, Jr.. 2005. Children and the Labor Force Participation and Earnings of Parents in the Philippines. © Asian Development Bank. http://hdl.handle.net/11540/3618. License: CC BY 3.0 IGO.Keywords
Gender Discrimination
Gender Equality
Gender Inequality
Alleviating Poverty
Anti-Poverty
Extreme Poverty
Fight Against Poverty
Global Poverty
Health Aspects Of Poverty
Indicators Of Poverty
Participatory Poverty Assessment
Poverty Eradication
Poverty Analysis
Poverty In Developing Countries
Poverty Reduction Efforts
Urban Poverty
Comparative Analysis
Social Research
Sex Discrimination
Employment Discrimination
Women's Rights
Equal Opportunity
Equal Pay
Feminism
Men's Role
Women's Role
Development Indicators
Environmental Indicators
Economic Indicators
Educational Indicators
Demographic Indicators
Health Indicators
Disadvantaged Groups
Low Income Groups
Socially Disadvantaged Children
Rural Conditions
Rural Development
Social Conditions
Gender-based analysis
Pay equity
Sexism
Equal rights amendment|Equal rights
Poor
Economic forecasting
Health expectancy
Social groups
Political participation
Distribution of income
Inequality of income
Developing countries
Rural community development
Mass society
Social change
Social policy
Social stability
Population
Sustainable development
Peasantry
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