The effect of education and demographic characteristics on the layoff odds of labor force participants
Date
2003-10
Authors
Antonio, May Lourdes D.
Brillantes, Abigail B.
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Abstract
This study examines whether education and demographic characteristics namely age, gender and marital status have a significant effect on the layoff probability of the participants in the labor force when firms undergo retrenchment. The Qualitative Response Model specifically the Logit model was used to determine the impact of these variables on layoffs. Initially education, age, gender and marital status were perceived to have a negative relation with the layoff probability, where male, single, young and with higher levels of education are less likely to be laid off. However, results showed that age and marital status does not affect the chances of workers or employees of being laid off. On the other hand, gender and education specifically, the college level have shown significance in affecting the likelihood of labor force participants to be laid off. With the consideration of added variables, namely the nature of employment and the kind of business, only the former has been found to have significance on the layoff probability. In the fully interactive model, the variables gender, education, nature of employment, the service sector and its interaction dummies with the levels of education proved to be significant.
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Keywords
Labor force, Labor market, Labor relations, Layoffs, Human capital, Education