Browsing by Author "Solon, Orville Jose C."
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Item Restricted A mother's touch: a study on the impact of maternal education on the educational outcomes of their children(2022-06-11) Magpantay, Isaac Raphael C.; Solon, Orville Jose C.This study aims to study the impact of maternal education on the probability that children will achieve higher educational outcomes. An ordered probit model was used, and marginal effects were computed in order to assess the effect of maternal education on the probability of achieving higher educational outcomes. The results suggest that parental education has a significantly positive effect on the probability that a child will achieve higher levels of education, with maternal education having a stronger effect. Aside from this, results also suggest that daughters are more likely to attain higher educational outcomes regardless of parental education and urbanity. Lastly, household income is also statistically significant, with higher levels of income associated with higher likelihood of higher education. The results of this study point towards policies targeted towards improving the low educational attainment of mothers and daughters, given how the benefits of maternal education lasts across generations.Item Restricted A study on the influence of OFW parents on children’s education(2022-06-13) Llamas, Sophia Margarita E.; Uy, Jan David D.; Solon, Orville Jose C.This paper seeks to establish the influence of Filipino parents working abroad on their child’s educational attainment. In order to accomplish this, we look into the principal factors that affect a child’s education according to established literature; this includes sex, income, parent’s education, and public spending on education. Then we look at the nature of overseas workers, specifically overseas contract workers in the Philippines. We hypothesize that OFWs will positively influence their children’s educational attainment. Data from the Family Income and Expenditure Survey (FIES) and the Labor Force Survey (LFS) is then used to serve as the data points for this study. We then run a logit regression on the difference of the child’s educational attainment with the household head’s educational attainment against the principal factors, working abroad variable, and interaction variables. From this, we find that past literature on the effects of sex, income, public spending, and parent’s education are true. Furthermore, we also find that the presence of a parent working abroad increases the likelihood that the child will have the same or higher educational attainment than the household head. After which, recommendations for future research on this field are annotated.Item Restricted An analysis of the impact of free public secondary education act of 1988 (RA 6655) and the governance basic education act of 2001 (RA 9155) on high school enrollment and completion(2015) Devela, Zarina Pauline T.; Generalao, Ian Nicole A.; Solon, Orville Jose C.This study aims to determine the impact of the following laws on the enrollment and completion of high school education especially among the poor individuals: (a) Free Public Secondary Education Act of 1988 (RA 6655) and (b) governance Basic Education Act of 2001 (RA 9155). Studies show that these laws have not been fully effective because access on secondary education was declining with negative net participation rates recorded throughout the years. We used two approaches to further study the effects of each law. The first approach classifies all individuals into three age cohorts: (i) those who are not affected by any law (43 years old and above); (ii) those affected exclusively by RA 6655 (29-42 years old); and (iii) those further affected by RA 9155 (12/15-28 years old) comparing their high school enrollment and completion. The second approach focuses on the public high school program in terms of its leakage and under coverage among current high school-aged individuals (12-16 years old). The data used was the 2014 Annual Poverty Indicator Survey (APIS). We came up with three models derived from the Hausman specification test from several models. The variables added into these models were derived from the education analytical framework of FASFAF, et al. (2004) which includes household characteristics, household head characteristics, and the child‟s characteristics. Logit and Multinomial Logit regressions were employed for the first and second approaches, respectively. Our estimates tell us that both laws significantly increased the probability of high school enrollment and completion. RA 6655 alone had relatively smaller effects on members of households belonging to the bottom three deciles. But with the implementation of RA 9155, the effect was magnified and channeled towards the lower deciles although without the guarantee of secondary schooling completion. Furthermore, high leakage and under-coverage rates of the public high school program were observed. These results suggest the need for a better targeting system among the poor and provision of additional financial assistance such as scholarship grants and loans to give the poor an equitable access and chance to enter and complete secondary education.Item Restricted An analysis on the risk premium on wage in the context of the Philippine labor market(2018-12) Bergante, Blush Paulyn P.; Castillo, Reevien C.; Quimbo, Stella Luz A.; Solon, Orville Jose C.With the influx of job opportunities in the Philippines as the economy continues to grow, occupational injuries have also started increasing, which provides an avenue for compensating wage differentials (CWD) in order to attract workers to accept hazardous occupations. A number of related literature have contrasting results regarding this: some articles say that there is indeed a positive CWD for hazardous occupations (Kneisner and Leet 1991; Kostiuk 1990; Devi, Shanmugam, & Jayasree 2012) and some countries, where unemployment is relatively higher, have negative CWD. This means that workers in hazardous occupations have relatively lower wages than those in non-hazardous occupations (Holmlund 1983; Joyce et. al 2010; Knutsson 2003; Pietroiusti et. al 2010;Schernhammer 2001; Benavides 2000). With such, we use Adam Smith’s CWD theory to look for evidence of hazard premium in highly hazardous occupations in the labor market of Philippines to see if having a highly hazardous occupation really translates to higher wages. Our study uses a wage model to examine the wage differential between highly hazardous and non hazardous occupations. However, our study shows that in the group of occupations with significant results, we found that, generally, there is actually a negative estimate -- highly hazardous occupations have less wages compared to non-hazardous occupations. This finding is important as it could be a basis for policy intervention since the Philippines has an existing hazard pay scheme for public health workers, and having incentives/compensation for only a specific group of workers with highly hazardous occupation shows unfairness and inconsistency.Item Restricted An assessment of the predective power of the stock market and labor market Nexus in the Philippines(2015-06) Pornillos, Paul Ryan H.; Triguero, Rafael G.; Solon, Orville Jose C.; Ducanes, Geoffrey M.This paper examines the predictability of the classical inflation - unemployment trade-off in the Philippines using their interaction with essential stock market and macroeconomic variables. Amidst the improving capital environment in the country as result of enhanced political governance and other factors that reduce the level of risks to financial development, it is worth noting what the implications of these are on other economic indicators as well as the overall economy in general. This study inspects quarterly macroeconomic and stock market data . from 2000 to 2014 and estimated different models to test the interactions between these variables and devise an alternative method for forecasting inflation and unemployment. Results show that the ARMAX estimation outperforms naive models in forecasting inflation while VAR seems to be the most effective method in forecasting unemployment ·in an eight- quarter horizon.Item Restricted An assessment on the effectiveness of a soft drink tax in reducing total sugar consumption(2015-12) Koon, Jeffrey A.; Valmorida, John Michael P.; Solon, Orville Jose C.This paper aims to determine the effectiveness of imposing a tax on soft drinks to reduce total sugar consumption. According to a study by the American Heart Association (AHA), soft drinks are the leading source of added sugar (AHA, 2014). According to the World Cancer Research Fund International (WCRF International) there are three approaches to reduce sugar intake: (a) reduce the availability and affordability of sugar and sugary products (b) influence the acceptability for alternatives and (c) raise awareness about the sugar contained in products (WCRF International, 2015). We use a demand for sugar model to estimate the taxes on soft drinks to be imposed. In constructing this model, we computed for the expected sugar intake from a regular or commercial dose of soft drink. We do this in order to reference actual consumption with established sugar levels. We estimated our model using the 2013 Annual Poverty Indicators Survey of the Philippine Statistics Authority. Due to missing variables on soft drink prices, we used a two-step model to estimate predicted household consumption and prices. The basic estimates of elasticity for soft drinks range from -0.8 to -1.0 (Andreyeva et al., 2010) consistent with our results of -1.0. Controlling for factors such as age of the household member, region, education of the household head, and income we find that an increase in the price of soft drinks leads to reduced consumption of soft drinks but total sugar consumption does not decrease by a significant amount.Item Restricted An exploratory multiple case study on road right-of-way and LGU participation in underground distribution systems (UDS) of Philippine LGUs(2023-02) Gonzaga, John Roel I; Santos, Roman Christopher; Solon, Orville Jose C.This paper seeks to determine the impact of road right-of-way and LGU participation on public-infrastructure project outcomes; specifically within the context of transitioning overhead T&D lines to underground cables in particular cities in the Philippines. It is hypothesized that road right-of-way and LGU participation play vital roles in determining transition outcomes. To test said hypothesis, five distinct variables, (1) road right-of-way, (2) LGU participation, (3) Project Characteristics, (4) City Characteristics, and (5) LGU characteristics will be measured against one dependent variable, Project Outcome, for 8 distinct cases situated in varying degrees of project completion in the Philippines. Through the analysis of these six variables, distinct findings are established: (1) road right-of-way is a main roadblock in infrastructure development and (2) LGU participation significantly lowers the burden brought about by these road right-of-way problems. This being the case, this study finds that (1) the existence of road right-of-way problems can be considered as one of the main determinants of success in the transition from overhead T&D lines to underground cables; and (2) active LGU participation is vital in the planning, implementation, and maintenance of electrical T&D lines and, by extension, public-infrastructure projects, in general.Item Restricted Analyzing the effect of household income on female labor force participation in the context of educational attainment, marital status, and urbanization(2023-06-27) Custodio, Bryan A.; Mozo, Anjelalie B.; Solon, Orville Jose C.The study investigates the relationship between Female Labor Force Participation (FLFP) and household income (HI) and examines how this relationship varies with educational attainment, marital status, and urbanization. The main hypothesis is that while a negative relationship exists between HI and FLFP, the magnitude, direction, and/or other dimensions of this relationship are affected by a woman's marital status, educational attainment, and urbanization. To test this hypothesis, the study estimates five distinct binomial probit models to test the inclusion of variables of interest and their interaction terms with total household income in relation to FLFP, using the most recent 2018 merged data from the Labor Force Survey (LFS) and Family Income and Expenditure Survey (FIES). It is found that without the inclusion of education, marital status, and urbanization, the probability of women joining the labor force increases with household income but at a decreasing rate. Meanwhile, when education is taken into account, the impact of household income on female labor force participation (FLFP) is entirely negative. However, in this model, higher-income households tend to experience a greater positive effect from education in terms of FLFP. Urbanization and marital status were not found to have any strong effect on the direction of the relationship of household income to FLFP. However, urban and marital status did have effects on the slope, with the effect being stronger for married individuals than those not married. Ultimately, this study provides insights into the factors that negatively affect and positively contribute to the labor force participation of women in the Philippines, allowing policymakers to design targeted interventions that address barriers and strengthenItem Restricted Are taxes on gaming progressive? an analysis of the incidence of taxes on gaming activities(2014-04) Bravo, Karen Andrea V.; Pascua, Patricia Beatrice R.; Solon, Orville Jose C.Gambling activities are deemed to be voluntary thus imposing taxes raises the questions of equity and efficiency. This study aims to determine how progressive or regressive taxes on gambling are in the Philippines. This will be done by estimating a model of who gambles, and how net winnings differ across different income brackets. Using the Heckman Regression Model, we find that, with the availability and proximity of gambling activities in the Philippines, taxes on any gambling activities burden the bottom 30-percent of income strata.Item Restricted Banking on remittances: an analysis on the causality of the savings behavior of remittance receiving households(2012-10) Magsino, Josemaria Carlo Faner; Solon, Orville Jose C.The aim of this paper is to analyze the Overseas Filipino Workers' recipients' savings activity after their income has been augmented by their cash receipts from their relatives abroad. OFW s compose around 10% of the whole Philippine population, and they have been considered as the Philippines' modem day heroes because of their contribution to the stimulation of the economy. It is also crucial to analyze the relationship of these remittances with bank activities since these savings, in the form of bank deposits can help bring the economy back to its stable state during bad times, as in shocks, which is already a prevalent trend in the international scene; as well as the effects of deposits on stimulating economic growth through the multiplier effect. Using a Heckman Two-Stage model and the dataset from the Annual Poverty Indicator Survey (APIS) 2010, this study found out that remittance increases both the likelihood and the actual value of money being deposited in banks. While some other factors, such as sex of head of household and family size, deter the amount that will be saved. From the study, there has been no significant relationship garnered from the regional and geographical location of the household.Item Restricted Clinical and socioeconomic correlates in the care of patients with appendicitis(2002-10) Caballes, Alvin B.; Solon, Orville Jose C.The study intended to determine how the quality of care for patients with appendicitis was affected by several clinical and socioeconomic variables. Data was collected retrospectively from appendectomy cases at the Our Lady of Lourdes Hospital for the year 2000. The following variables were utilized as the parameters for quality of care: time interval from onset of symptoms to surgery, time interval from surgical consult until surgery, number of antibiotics utilized, kind of antibiotic utilized, incidence of late pathology (i.e., ruptured or gangrenous appendicitis), and total length of hospital stay. Analysis was by multiple and logistic regression. Different sets of independent variables (with diverse magnitudes of associations) were determined to be significantly associated with individual quality of care measures.Item Restricted Community development projects for the Yolanda victims: A study on the Yolanda relief operation(2015) Vitug, Maria Fatima R.; Yamat, Mara Donna A.; Solon, Orville Jose C.Anyone can attest to the Philippines’ abnormal traffic situation. Roads are congested nearly any time of the day. While it is true that the congestion can be attributed to the lack of motorist discipline, it cannot be denied that the increasing number of private vehicles plays a big role in the situation. Buying new vehicles in the Philippines is slowly becoming the norm, thanks to attractive rates offered by competing car manufacturers. With that in mind, this study aims to extract the price elasticity of automobile demand and quantify the impact of a price increase on demand in order to aid policy-making. An OLS regression was ran to serve as a benchmark model, but its results were inconsistent due to endogeneity. To address this, a cross-panel Instrumental Variable 2SLS regression was used in order to obtain price elasticity. The estimation concluded that the price elasticity of demand for automobiles is 2.851103 which matches theory that short-run elasticity of automobiles is elastic. A progressive excise tax on automobiles may be imposed in order to curb demand for automobiles and to increase government revenue.Item Restricted Cutting down on salt: The potential impact of a tax on processed meat to reduce salt intake to the recommended level(2015-12) Maderazo, Sarah Mishael S.; Timbol, Jan Hannah B.; Solon, Orville Jose C.Should processed meat be taxed in order to reduce salt intake? And if so, by how much? Salt is needed by our bodies to function properly (Chen, Zieve, & Ogilvie, 2014). But if taken excessively, it can lead to high blood pressure (American Heart Association, 2015). According to the World Health Organization, the recommended level of salt intake is 5 grams a day. However, food products such as processed meats which use salt as a preservative contribute to a person’s excessive salt intake. Consumption of such products drastically increases one Filipino’s salt intake to 15 grams a day (Ong, 2014). Processed meats are said to contribute much to a person’s daily salt intake because of their growing popularity and convenience (Centers for Disease Control and Prevention, 2012). The study of Micha, Michas, and Mozaffarian (2012) shows that processed meats are 400% higher in salt content than unprocessed meats. The consumption of processed meats increases the risks of coronary heart disease (CHDs) and type 2 diabetes. The amount of salt in processed meats accounts for two-thirds of the risk difference. Using the 2013 Annual Poverty Indicator Survey data, we want to test the hypothesis that imposing a tax would decrease per capita processed meat consumption and in turn reduce salt intake to the recommended level. We begin our estimates by using a standard demand model for processed meat with income, own price, and prices of its potential substitutes and complements. Then, we test for alternative model specifications by controlling for other factors such as household features and characteristics of the household head which may affect consumption of processed meat. Our study estimates both the own-price and cross-price elasticity with respect to an increase in the price of processed meat. By simulating price increase levels, we find that imposing a 58% tax on processed meat leads to the 10-gram target reduction in one’s daily salt intake. Our results provide evidence that a policy like food taxation can be an effective mechanism to reduce excessive salt intake of Filipinos and address the health problems associated with it.Item Restricted Determinants of health care demand in the Philippines - lessons from recent studies(2023-01-10) Caurez, Beatrice Nathalie L.; Sambajon, Dana Eilyn O.; Solon, Orville Jose C.Understanding healthcare demand allows policymakers to gain useful information for improving people's health through improved access to health facilities. There have been numerous studies on healthcare demand but there has not been a comprehensive review and compilation of their findings and methodologies, especially since they produce conflicting results. This paper is mainly focused on two things, analyzing the existing studies and literature about healthcare demand in the Philippines and combining lessons from these past studies to come up with a latest model that will aid in understanding the healthcare demand in the country. Building on previous studies, we specified 12 outcome categories using a multinomial logit model. These outcomes are a combination of the health status of individuals (sick and not sick) and the 5 types of health facilities visited, if any. Due to the wide gap in PhilHealth accreditation between hospitals and public health facilities, this study separated hospitals (public and private) from health facilities (public and private). Furthermore, this study’s model included those who are sick but chose not to visit any healthcare facility since most of the previous healthcare studies reviewed usually only included those who visited a facility to determine demand. The majority of our variables of interest (costs, severity of illness, reasons for visiting) have the same relationships with healthcare demand regardless of the individual’s health status. The results for the costs and reasons for visiting variables revealed insignificant effects on general healthcare demand, which matches Akin et al’s [1986] findings. However, this is contrary to the results of Ae Kim et al [2014], who found the cost of healthcare to be significant in healthcare utilization or demand. On the other hand, it was observed that there were varying representations for the severity of illness variable, which lead to differences in the results of previous studies. This study used categories of illnesses to represent the severity of illness and it was observed to have a positive correlation with sick individuals’ healthcare demand. Meanwhile, insurance and wealth variables exhibit notable differences in both not sick and sick individuals. Different trends among respondents coming from different wealth indexes were revealed.Item Restricted Estimating the utilization rates of bilateral tubal ligation services in 2008 and 2011 with missing information on the year when the procedure was undertaken(2014-04) Cabarles, Ma. Aizl Camille B.; Solon, Orville Jose C.Estimation of annual use rates for bilateral tubal ligation (BTL) service is essential for program planning since it serves as basis in determining the resource requirements to ensure availability of BTL service. The standard method in estimating utilization of BTL service is based on the ex-ante decision on what family planning (FP) method to use. However, readily available data from population-based surveys, like the standard Demographic Health Surveys (DHS), provide ex-post information on what FP method women were currently using at the time of the survey. Incidence rate measures the annual utilization of BTL service but population-based surveys yield the prevalence rate, a cumulative estimate of BTL utilization. The prevalence rate when used for annual estimation would overestimate the number of women expected to have undergone the procedure in a given year. Given the limitations of available data, use of a two-stage model that follows Heckman's approach is proposed to estimate the incidence rate. The first stage estimates the BTL prevalence rate, while the second stage allows estimation of annual BTL utilization using information on the year of BTL operation which is available in the 2008 NDHS. Result of the mean estimates showed that BTL use rate in 2008 was only 0.302 percent, significantly lower than the reported BTL prevalence rate of 6 percent. However, information on year of BTL operation is not always available. For some DHS-like surveys that have missing information on the year of BTL operation such as the 2011 Family Health Survey (FHS), it is proposed that the year of last pregnancy be used as proxy. To determine the validity of the proposed solution, the two-stage model with information on year of BTL operation and the two-stage model with proxy indicator are implemented using the 2008 NDHS. The models are then compared using the Hausman specification test. Test result showed that the two models have no systematic difference, thus, the two-stage model with proxy variable is a valid alternative of the model with information on year of BTL operation in cases where the latter is not available. Using the most recent data, BTL use rate in 2011 was estimated at 0.167 percent or equivalent to 37,115 BTL clients, significantly smaller than the reported BTL prevalence rate of 5.6 percent (equivalent to 1.3 million women).Item Restricted Free tertiary education: does it make economic sense?(2018) Japlos, Jose Gabriel L. ; Tan, Chermaine Janise L. ; Quimbo, Stella Luz A. ; Solon, Orville Jose C.This study aims to measure the social benefits of free tertiary education. We measure both private (effects on income) and public benefits (measures of citizenship like propensity to vote, violence against women, payment of taxes and working for the public sector). Using Multiple Linear Regression, we then measured the following: wages, voter turnout, local tax collected, violence against women and children, and by using a Logit Model , the likelihood of working in the public sector as the determinants of private and social returns of tertiary education. Results suggest that tertiary education provides private benefits in that regions with a higher proportion of SUC graduates are more likely to have increased wages, and less violence against women. Additionally, results show that graduating from an SUC increases the probability of an individual to work in the public sector. Thus, it is clear that in various forms, providing free tertiary education brings about positive private and social returns.Item Restricted Household awareness of the responsible parenthood movement classes: an analysis of the awareness targeting mechanisms of the rsponsible parenthood movement class program(2012-01) Garcia, Randall S.; Hilado, Emilio Ray Christian D.; Solon, Orville Jose C.High levels of population has long been one of the major problems of the Philippines; as part of the efforts to address this problem the government has implemented the Responsible Parenthood Movement Class (RPM) Program. The aim of the study was to assess the effectiveness of the awareness targeting mechanisms of the said program. In order to obtain the desired results for this study, logistic regression was use. From the results of the regression, the study concludes that the efforts to make the intended groups aware of this program still leave much to be desired. The results show that the means by which awareness of the program is being spread has not been as effective in reaching those that would benefit the most from the program, namely the poor and uneducated.Item Restricted Is endo the end-all? an empirical analysis of the relationship between labor productivity and short-term contracts in the Philippines(2018) Mariano, Kelsey Savannah F. ; Ramin, Beatrice Maile G. ; Solon, Orville Jose C.; Quimbo, Stella Luz A.The administration of President Rodrigo Duterte has faced battle cry after battle cry to fully abolish labor-only contractualization, or endo in the Philippines. This paper aims to determine whether the use of temporary contracts or the employment of temporary workers, in the context of the Philippine labor market, is linked to higher labor productivity across various industries. We performed a multiple linear regression on the merged Labor Force Survey and Annual Survey of Philippine Business and Industries surveys. Results show that controlling for other explanatory variables, workers hired on a short-term basis are more productive than those hired permanently. We estimate that the difference in labor productivity, from employing temporary workers, range from 20.05% to 21.66%.Item Restricted Loan ko ‘to: assessing the prevalence and productivity of the informal credit market(2018-12-31) Bernardo, Ivan Cenon V. ; Encarnacion, Alyssa Bianca P. ; Solon, Orville Jose C.According to the 2014 Consumer Finance Survey of the Bangko Sentral ng Pilipinas (BSP), the informal credit market serves as the main source of financing for Filipino households, with 70% percent of households reporting to have some form of informal loan. This paper aims to determine the characteristics of informal loan borrowers and whether such informal credit is being allocated for productive purposes. By employing a multinomial logistic regression model to simulate the decision-making process of a borrower, we found that family size, educational attainment, location of residence, income, and property ownership are significant predictors of the likelihood of whether one will avail of an informal loan. Further, we found that informal loans are found to be utilized for investments in physical capital rather than other types of consumption or investment purposes. These findings imply that interventions of both the BSP and other government agencies to improve accessibility of formal credit and government loans will have long-term implications for inclusive economic growth.Item Restricted Maternal education and child health: exploring the relationship between mother's educational attainment and diarrhea prevalence among children in the Philippines(2023-06-29) Napolis, Jerald Kino I.; Solon, Orville Jose C.This study aims to investigate the relationship between mothers' educational attainment and the incidence of illness among children in the Philippines, while also considering the potential confounding effect of maternal employment that may arise from higher levels of education. The study hypothesizes that higher levels of maternal education lead to lower illness incidence and better child care due to increased knowledge on preventing illnesses and increased possibility of employment leading to better capacity and access to medical care. However, being employed may also result to mothers having less time to take care of their children, potentially contributing to increased illness incidence. The study takes data from 2017 Philippine National Demographic and Health Survey (NDHS) and uses logit regression analysis to examine the effect of mothers’ years in school and mothers’ presence of work on prevalence of diarrhea among children, the leading cause of illness among children in the Philippines. The findings reveal a significant association between mother's education and the prevalence of diarrhea among children, following a nonlinear pattern, characterized by an inverse U-shape curve. This result emphasizes the importance of educational opportunities for mothers, as higher levels of education, at more than six years of schooling, are associated with a lower likelihood of diarrhea incidence among children. The study also finds that this association is more consistent with working mothers revealing the importance of women's participation in the workforce. The study further concludes that the net effect of a mother attaining an additional year of schooling results in a decrease of 0.0036574 in the predicted likelihood of her child experiencing diarrhea. Therefore, by focusing on policies that increase educational opportunities for women and create supportive work environments, the government can reduce the likelihood of childhood illnesses and contribute to the overall well-being of Filipino children.