Recent trends in the gender gap in the labor market in the Philippines

Abstract

We use linear and nonlinear decomposition methods to explore recent trends in male-female differentials in labor market performance in the Philippines. Using the 2018 Labor Force Survey, we calculate an unadjusted wage gap of 5.77 percent, an employment rate gap of 0.36 percentage points, and a labor force participation rate gap of 19 percentage points. We provide further context by showing the evolution of these figures over time (2002-2018), which indicates that women generally perform worse in the labor market than men as measured by the pay gap and the gap in labor force participation (LFP). The decomposition exercise reveals that the pay and LFP-rate differentials are largely due to women receiving lower returns to their observable characteristics relative to men. The gender gap in employment status is not significant. 

JEL classification: J16, J21, J71