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Item Restricted Foreign remittances, employment decision, and household expenditure behavior the case of Filipino overseas contract workers’ spouses(2024-01-15) Embile, Hannah F.; Estanislao, Aila Marie B.; Pernia, Ernesto M.The Philippines is a primary recipient of foreign remittances, which a significant number of households rely on. This study examines how foreign remittances sent by Overseas Contract Workers (OCWs) affect the employment and household expenditure patterns of spouses left behind in the Philippines, as well as whether gender of the remittance-receiving spouse plays a crucial role in these decisions. Using the 2018 Family Income and Expenditure Survey (FIES) and Labor Force Survey (LFS) merged data file, we employ logit and multinomial logit models to analyze employment decisions, as well as instrumental variable estimation to assess expenditure behavior across 12 consumption categories. Key results reveal that higher remittances lower employment in most employment categories for males and females. Remittance- receiving spouses, regardless of gender, spend more on education, housing, clothing, and furnishings, and less on food, tobacco, special occasions, transport, and durable goods. For health, alcohol, and special occasions, males and females had mixed results. Overseas remittances and the gender of the remittance-receiving spouses, thus, influence employment and household spending. Policy ideas promote human and physical capital investments for long-term wellbeing and economic growth of remittance-receiving households.Item Restricted The effect of female household heads on food, health, housing, and education expenditures in the Philippines(2024-01) Tingson, Lorenz Emmanuel A.; Solon, Orville Jose C.This study investigates the effect of female household heads on household expenditures like food, health, housing, and education. Following Eagly's (1987) Social Role Theory, which explains behavioral differences between sexes due to societal roles, the theory offers a framework for examining how social norms influence the household decision-making and priorities of female household heads. This study examines if female headed households allocate more resources to welfare-improving expenditures like food, health, housing, and education when they are heads of households (Miralao, 1992; Arceno and Castillo, 1999; Capungcol and Garcia, 2019). Data from the 2016 Annual Poverty Indicator Survey of the Philippines was used to perform an Ordinary Least Squares (OLS) multiple linear regression analysis, considering variables such as income, age, child presence, marital status, and educational attainment to investigate the link between different household expenditures (food, health, housing, and education) and female household heads. The findings partially support the hypothesis that women, in their roles as caregivers and nurturers, prioritize spending on essential household expenditures like food and health. However, this influence does not extend uniformly across other expenditure categories like housing and education. This variation might be due to the multifaceted nature of household decision-making, where other independent factors which go beyond the sex of the household head also play a significant role in shaping expenditures. The study highlights the complexity of household decision-making and emphasizes the need for policymakers to design targeted programs that recognize the diversity within female-headed households, accounting for various factors influencing household spending to effectively address their unique challenges.Item Restricted Differential effects of remittances and domestic income on household expenditure shares: evidence from the 2023 FIES and LFS(2026-01-06) Adan, Alexandria Loreine S.; Go, Edrea Beatriz O.; Solon, Orville Jose C.This study examines whether Filipino households treat remittance income differently than domestic income across eight expenditure categories. The analysis is framed using the Mental Accounting Theory (Thaler, 1990) and Liquidity Constraint Models (Deaton, 1991; Carrol, 1997), where remittances are treated as a distinct, non-fungible source of income to test the differential effects of remittance and domestic income on household expenditure shares. Using a merged dataset of the 2023 Labor Force Survey (LFS) and Family Income and Expenditure Survey (FIES), a Seemingly Unrelated Regression (SUR) model estimated the differential effects of remittance income and domestic income on expenditure shares. The study observed distinct differences in how households allocate remittances compared to domestic income: both income sources reduce food and drink expenditure shares, but remittances exhibit a significantly larger reduction of Php 2.22 per 10,000,000 Php compared to Php 0.72 per 10,000,000 Php for domestic income. Remittances also demonstrated larger positive effects on investment-oriented categories including education and recreation (+Php 9.48 per Php 10,000,000), housing (+Php 3.88 per Php 10,000,000), and health (+Php 2.14 per Php 10,000,00), compared with smaller effects from domestic income. These patterns indicate that households channel remittances toward long-term investments and lumpy expenditures, reinforcing the role of remittances in enhancing household welfare and underscoring the need for policies that encourage productive investments beyond immediate consumption.