Welfare and employment security: the case of PUJ and AUV drivers

Date

2009-03

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Abstract

The emergence of the public utility jeepney (PUJ) and Asian utility vehicle (AUV) sectors in urban and urbanizing areas in the Philippines has responded to the commuters' need for readily available, inexpensive, accessible, and almost door-to-door public transport service. The boundary system evolved as a solution to uncertainty problems surrounding the PUJ and AUV sectors such as asymmetric information, adverse selection, moral hazard and principal-agent problem. It also serves as a form of employment security for the driver-renters. Using the ordinary least squares regression method, variables, denoting work effort, have significant positive effects on the driver's welfare. The dependency ratio, driver type and vehicle ownership status also have significant effects. The other variables hypothesized to affect the welfare of the driver did not turn out as significant.

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Keywords

PUJ, AUV, Transport system, Public utility vehicle, Public transport

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