The impact of labor productivity on the determination of minimum wages in the Philippines
Date
2005-03
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
The study seeks to evaluate the impact of labor productivity in the determination of minimum wages in the Philippines. By means of multiple regression analysis, four (4) independent variables are employed to determine the minimum wage. The variables are founded from the criteria supplied by the Regional Tripartite Wages and Productivity Boards which is categorized criteria into four (4) major groups namely: 1) needs of workers and their families, 2) capacity to pay of employers/industry, 3) comparable wages, and 4) requirements for national development. While the importance of labor productivity, as a determinant of minimum wages is recognized, it is not however used as findings suggest that the needs of workers and their families explain changes in minimum wages. As a result, policies devised to increase productivity of labor are considered to obtain the quality of minimum wages intended to stimulate the growth of the economy.
Description
Keywords
Labor productivity, Wages, Wage determination, Labor market, Wage inequality, Wage policy