Browse > Article
http://dx.doi.org/10.13106/jafeb.2021.vol8.no3.0155

The Effect of Philippine National Wage Variation: The Top-Down Microsimulation Model  

DIZON, Ricardo Laurio (Graduate School, Polytechnic University of the Philippines)
VILLAHERMOSA, Joan M. (Commission on Audit)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.3, 2021 , pp. 155-163 More about this Journal
Abstract
The study aims to investigate the effect on Philippine occupational choice of House Bill No.7787, also known as the National Wage Law, which was filled by the Philippine Congress that mandates the implementation of an across the board minimum daily wage of Php750.00 to all workers in the Philippines. This study had used the Computable General Equilibrium-Top-Down Behavioral Microsimulation approach to determine the effect of National Wage Law on occupational choice. The results of the study revealed that the implementation of said National Wage Law would affect the distribution of labor force across occupational classification such as wage workers, entrepreneurial farming activities workers, and entrepreneurial non-farming activities workers. This has resulted from a higher utility that will be derived from the wage working sector once the National Wage Law will be implemented. Further, among regions in the Philippines, the Calabarzon, National Capital Region, and Central Luzon had recorded the highest number of workers who prefer the wage income sector. The findings of the study also suggest that the Philippine agricultural sector will be greatly affected by the National Wage Law due to the preference of workers to shift from the entrepreneurial farming sector to belong to the wage sector.
Keywords
Computational; Microsimulation; Occupational Choice; Wage; Household Income;
Citations & Related Records
Times Cited By KSCI : 1  (Citation Analysis)
연도 인용수 순위
1 Aaronson, D., Agarwal, S., & French, E. (2011). The spending and debt responses to minimum wage increases. American Economic Review, 102(7), 1-31. https://doi.org/10.1257/aer.102.7.3111   DOI
2 Abachi, P. T., & Iorember, P. T. (2017). Macroeconomic and household welfare impact of the increase in the minimum wage in Nigeria: A computable general equilibrium model. American Journal of Economics, 7(5), 249-258. https://doi.org/10.5923/j.economics.20170705.06
3 Ahmed, V., & O'Donoghue C. (2007). CGE-microsimulation modeling: A survey (Working Paper 9307). Munich Personal RePEc. https://mpra.ub.uni-muenchen.de/9307/
4 Aitken, A., Dolton, P., & Wadsworth, J. (2014). Did the minimum wage change consumption, saving, and debt behavior? University of Sussex and Center for Economic Performance at London School of Economics. https://assets.publishing.service.gov.uk
5 Alatas, V., & Bourguignon, F. (2000). The evolution of the distribution of income during Indonesian fast growth:1980-1996 (Working Paper 2000). InterAmerican Development Bank & World Bank.. http://www.fao.org/tempref/AG/Reserved/PPLPF/Docs/Saule/Background/Bourg-Alatas.pdf
6 Asubiojo, A. S., & Ekperiware, M. C. (2017). Dynamics of savings and the minimum wage in Nigeria. American Journal of Business, Economics, and Management, 5(6), 74-79.
7 Bourguignon, F., Ferreira, F. H., & Leite, P. G. (2007). Beyond Oaxaca-Blinder: Accounting for difference in household income distribution. The Journal of Economic Inequality, 6, 117-148. http://documents1.worldbank.org/curated/en/728321468770110402/119519322_20041117161548/additional/multi0page.pdf   DOI
8 Do, H. H., Mai, C. N., Mai, A. N., Nguyen, N. D. Pham, T. N., Le, H. T., Tran, M. D., & Vu, T. T. (2020). Impact of vocational training on wages of ethnic minority labors in Vietnam. Journal of Asian Finance, Economics, and Business, 7(6), 551-560. https://doi.org/10.13106/jafeb.2020.vol7.no6.551   DOI
9 Breece, J., Glenn, M., & Todd G. (2015). The economic implications of Maine's changing age structure. Maine Policy Review, 24(2), 13-22.
10 Chulanova, Z. K., & Ussenova, A. S. (2020). Human capital and methodic of determination of its cost: A case of Kazakhstan. Journal of Asian Finance, Economics, and Business, 2(2), 19-25. https://doi.org/10.13106/jafeb.2015.vol2.no2.19   DOI
11 Idiaye, C., Kuhn, A., & Okoruwa, V. (2018). Minimum wage policy and rural household welfare in Nigeria. Proceedings of the 2018 Conference of International Association of Agricultural Economist, Vancouver, British, July 28-August 2, 2018 (pp. 1-32). https://ageconsearch.umn.edu
12 Ledic, M. (2012). Estimating labor supply at the extensive margin in the presence of sample selection bias (MPRA Working Paper 55745). Munich Personal RePEc. https://mpra.ub.unimuenchen.de/ 55745/1/MPRA_paper_55745.pdf
13 Polavieja, J. G. (2008). The effect of occupational sexcomposition on earnings: job-specialization, sex-role attitudes and the division of domestic labor in Spain. European Sociological Review, 24 (2), 199-213. https://doi.org/10.1093/esr/jcm043   DOI
14 Lee, L. H., & Lee, T. N. (2020). Determinants of income diversification among rural households in the Mekong River Delta: The economic transition period. Journal of Asian Finance, Economics, and Business, 7(5), 291-304. https://doi.org/10.13106/jafeb.2020.vol7.no5.291   DOI
15 Mwangi, T., Simiyu, F. N., Beyene, L. M. & Onderi, A. (2017). The effects of minimum wages on the labor market and income distribution in Kenya: A CGE analysis (Working Paper MPIA 2017-22). Partnership for Economic Policy. https://ssrn.com/abstract=3159371
16 Paqueo, V. B., Orbeta, A. C. & Lanzona, L. A. (2016). The impact of legal minimum wages on employment, income, and poverty incidence in the Philippines (Discussion Paper Series No. 2016-54). Philippine Institute for Development Studies. https://dirp4.pids.gov.ph