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  1. Home
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Browsing by Author "Narcisco, Francine A."

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    The income and decision function of workers in the informal sector
    (2014-12) Narcisco, Francine A.; Rivera, Rita Angela M.; Carlos, Fidelina N.
    As many workers continue to enter the informal sector there is a need to study the characteristics of informal sectors and their decision to engage in entrepreneurial activities despite economic growth. Using the FIES, the paper attempts to determine the effects of specific factors on income determination and the probability of a household to engage in the informal sector. Results have shown that households residing in regions other than the NCR have a higher probability to engage in entrepreneurial activities and urban areas have a bigger probability to have higher incomes. All sectors except have higher incomes and lower probability to engage in entrepreneurial activities compared to the agricultural sector. Furthermore, heads with more years of schooling, especially those who finished college, have higher incomes and are unlikely to engage in entrepreneurial activities, a result that is consistent with Schultz' hypothesis.

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