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Item Restricted Underemployment in the Philippines(2008-10) Cancer, Justine Marie L.; Socco, Celina Katrina C.This paper aims to determine the factors that significantly affect the persisting underemployment in the Philippines. Also, factors of underemployment will be compared to those of unemployment. Using the cross-sectional pooled data from the Labor Force Survey, the study determines how one's employment status is affected by several factors such as socio-economic variables and institutional characteristics. A logistic regression is run using a model with the employment state as dependent variable and socio-demographic characteristics, education, number of dependent children, region and industry as independent variables. The study finds age, gender, education, marital status, and number of dependent children as significant factors affecting underemployment. Workers in their prime working age and those who are supporting dependents are most likely to be underemployed. Further, male workers have higher probabilities of being underemployed than females. Also, region and industry determines underemployment. Those employed in the agriculture sector largely represent the underemployed. In addition, depressed regions have the most problem of underemployment while the advanced regions have the least. Workers coming from the former seek more work since the jobs available for them are generally low-paying. Other reasons are the seasonality of work and poverty which compel workers to seek additional work.