Skills for the Labor Market in the Philippines

by Di Gropello, Emanuela; Tan, Hong; Tandon, Prateek

• ISBN13: 9780821384893
• ISBN10: 0821384899
• Format: Paperback
• Copyright: 2010-09-24
• Publisher: World Bank Publications

Summary

The Filipino economy has experienced overall growth over the last 20 years, but the growth of the manufacturing sector has been sluggish, and the country has lost innovation capacity. Regaining momentum will depend on many factors, but skills have a key role to play in supporting the growing service sector, improving the competitiveness of the manufacturing sector, and enhancing the long-term ability of the country to innovate and adapt and assimilate new technologies. 'Skills for the Labor Market in the Philippines' analyzes the functional skills with which workers need to be equipped to be employable and support firms#xE2;#xAC;" competitiveness and productivity, and evaluates the role of the education and training system in providing these skills. Based on an innovative survey of employers, this book is the most comprehensive attempt thus far to review the skills that matter for the labor market. The book reveals that a dramatic increase in educational attainment occurred in just under two decades in the Philippines. However, in light of the growing demand for skills, the authors also make it clear that there are indications of emerging skills gaps, suggesting that skills are becoming a constraining factor for economic growth. The authors flesh out several policy implications, which should provide a valuable contribution to improving the country#xE2;#xAC;"s education and training system. The book is primarily intended for the policy makers and researchers who shape the delivery of education and training in the Philippines and other middle-income countries.

Table of Contents

Acknowledgments	p. xv
Currency Equivalents	p. xvii
Abbreviations	p. xix
Overview	p. 1
Trends and Drivers of Demand for Skills	p. 3
Emerging Skills Gaps	p. 10
Weaknesses of Skill Supply and Main Policy Directions	p. 17
Notes	p. 27
References	p. 28
Introduction	p. 29
Motivation and Context	p. 29
Approach, Methodology, and Structure	p. 34
Notes	p. 37
Reference	p. 38
Skills Demand in the Philippines	p. 39
Skills Trends in the Philippines	p. 41
Trends in Skill Composition, Employment, and Relative Wages	p. 41
Estimates of Industry and Education Premiums	p. 50
Trends in Returns to Schooling	p. 54
Education Requirements of Employers	p. 59
Workforce Needs: New Hires and Dismissals	p. 60
Net Hires	p. 62
Skill Requirements of New Hires	p. 65
Notes	p. 69
References	p. 70
Drivers of Demand for Skills	p. 71
Correlates of Industry and Education Premiums	p. 71
Drivers of Demand for Skills in Manufacturing	p. 75
Skills, Export Orientation, and Technology in the Employer Skill Survey	p. 81
Notes	p. 87
References	p. 89
Skills Gaps	p. 91
Vacancies and Skills Gaps	p. 91
Toward a Better Understanding of Skills Gaps	p. 108
Notes	p. 130
References	p. 131
Skills Supply in the Philippines	p. 133
Strengths and Weaknesses of Education and Training Institutions	p. 137
In-Depth Analysis of Four Key Pillars of the Supply of Skills	p. 143
The Higher Education Subsector	p. 144
Technical and Vocational Education	p. 167
Alternative Learning Systems	p. 183
Trends in In-Service Training	p. 190
Notes	p. 204
References	p. 205
Policy Implications	p. 207
General Policy Implications	p. 207
Specific Policy Recommendations	p. 208
Notes	p. 215
Appendix: Tables	p. 217
References	p. 240
Index	p. 241
Boxes
Skills Conceptual Framework	p. 34
The Philippines LFS Data	p. 42
The Philippines Skills Survey	p. 60
Overview of 2003 Philippines ICS and Methodology of Estimation	p. 77
Figures
GDP Composition by Sector, 1985-2007	p. 2
Trends in Education Wage Premium and Skilled Workforce	p. 4
Rates of Return by Economic Sector	p. 5
Education of Net Hires by Sector and Size, 2008	p. 5
Education of Net Hires by Export Status, 2008	p. 7
Occupation of Emigrating Workers before Emigration	p. 8
Most Important Key Core Skills by Occupation	p. 9
Most Important Key Job-Specific Skills and Related Sources of Skills by Occupation	p. 10
Difficulty Finding the Right Skills, by Occupation and Sector	p. 11
Number of Weeks to Fill Professional Vacancies in East Asia	p. 12
Reasons for Skill Shortages, by Sector	p. 12
Unemployment Rates, by Education Levels, 2006-07	p. 13
Gaps in Core Skills by Occupation, according to Percentage of Respondents	p. 14
Reasons for Skills Shortage by Manufacturing Subsector	p. 16
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