Education and Wage Differentials in the Philippines


We experiment with similar regressions at the regional and sectoral level. Results are presented in Annex 2. The findings indicate that impacts of personal attributes and occupation differ significantly across regions and genders. The wage gap between sexes is largest in Visayas (30 percent), while smallest in NCR (24 percent). Wage premium for tertiary education is slightly higher in Mindanao for all workers. Wage gap between professional workers and unskilled workers is the smallest in NCR, while the largest in Visayas.

Within a region, wages vary widely across sect ors. For example, in Luzon, those who are employed in the manufacturing sector and services sector earn 46 percent and 24 percent higher daily wage than those in the agricultural sector ; while in NCR, the wage gap is 24 percent and 7 percent, respectively. This is consistent with the difference in production structure within each economic sector across regions. Wage gap betw een agricultural and manufacturing workers of both genders is the largest in Luzon, while the smallest in Mindanao. Especially in NCR and Mindanao, female workers in the services sector earn less than those in the agricultural sector.

Within each region, education is commonly the singl e most important factor that contributes to wage differentials – it accounts for 28 percent of wage inequality of all workers in NCR, 27 percent in Luzon, 36 percent in Visayas and 34 pe rcent in Mindanao. The ro le of educational is less significant for male workers in all regions. Occupation is the second most important factor – it accounts for 11-14 percent of wage inequality in each region. The role of sector is limited, especially in NCR and Mindanao where the economy is dominated by a single sector (services in NCR and agricultural in Mindanao).

Source InstitutionWorld Bank
Source URL
Page Count27
Place of PublicationPasig City
Original Publication DateNovember 1, 2009