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Youth Unemployment and Entrepreneurship in the Philippines
Brian C. Gozun, De La Salle UniversityJohn Paolo R. Rivera, Asian Institute of Management
12th CBMS Philippines National Conference 01 March 2016
This study was funded by the Angelo King Institute for Economic and Business Studies (AKIEBS) and the Community Based Monitoring System (CBMS) Network under the project entitled Social Protection for the Informal Sector (SPIS) and Youth Employment and Entrepreneurship (YEE).
Youth & Unemployment
• Youth– United Nations: 15 to 24 years old– the Philippines: 15 to 30 years old
• We used the UN definition;– Youth without work but available
for and seeking employment
• PSA (LFS): almost 1.5M youths (18-24) are jobless and accounts for more than half of the jobless 2.9M in the country
Youth, Employment, Entrepreneurship
• Make the youth employable• Encourage the youth to be
entrepreneurial• Alleviate unemployment through
entrepreneurship
Research Questions:• What is the extent of
unemployment among the youth?• How do demographic
characteristics, level of education, and availment of in-aid programs influence an individual’s likelihood to acquire employment or to engage in entrepreneurial activities?
Entrepreneurship
• Identifying the entrepreneur– Who enterprises human action in
pursuit of the generation of value, through the creation or expansion of economic activity, by identifying and exploiting new products, processes or markets (Ahmad & Hoffman, 2007)
• Driving factors of entrepreneurial propensity– Financial Capacity
– Education
Selected In-aid Programs
• Bureau of Working Conditions (BWC) Work Improvement in Small Enterprise (WISE)– Aimed to improve productivity through low-cost
improvements in working conditions in SMEs
• NWPC ISTIV Bayanihan Program– Training program and networking intervention for
BMBE
– Aids the growth of micro-enterprises through the enhancement of the entrepreneur’s way of managing the business
Selected In-aid Programs
• DILEEP Livelihood and Emergency Employment Program– KABUHAYAN
– Tulong Panghanapbuhay sa Ating Disadvantaged / Displaced Workers (TUPAD)
• Special Program for the Employment of Students (SPES)– Aims to help poor but deserving students pursue
their education by providing income through employment during vacations.
Selected In-aid Programs
• Youth Entrepreneurship Support (YES)– To mobilize the college and technical-vocational
graduates to become young entrepreneurs thereby generating income and jobs in the countryside
• Youth Education – Youth Employability (YE-YE)– To address the needs of the disadvantaged youth to
pursue an academic or technical-vocational, post secondary course towards becoming more employable and more productive members of the labor force.
Framework
• Method: Assess the likelihood that the youth can be employed (1) permanently; (2) seasonally; (3) temporary (as categorized by CBMS); or (4) engaged in entrepreneurial venture using multinomial logistic regression
• Dataset: CBMS data from different member schools of De La Salle Philippines
• Variables: demographic characteristics, educational attainment, in-aid programs
Career status of the Filipino youth
10.14
16.16
0.76
0.59
72.35
Permanent
Short-term, seasonal, casual
Worked on different jobs on day to day or week toweek
Entrepreneurial
Unidentified
Gender Distribution
50.63
49.37 Male
Female
Male Distribution
10.14
20.18
1.23
0.6867.77
Permanent
Short-term, seasonal, casual
Worked on different jobs on day to day or weekto week
Entrepreneurial
Unidentified
Female Distribution
10.14
12.04
0.28
0.48
77.06
Permanent
Short-term, seasonal, casual
Worked on different jobs on day to day or weekto week
Entrepreneurial
Unidentified
Age Distribution (by bracket)
Where is the youth?
What did the youth avail?
How much does the youth earns?
Empirical Findings
• Cash wages, age, and education:– reinforces employment and
entrepreneurship– more influential in employment (all
forms)
• Being married and having an OFW in the household reinforces likelihood of permanent employment
• In-aid programs related to employment increases likelihood of being permanently and seasonally employed
• In-aid programs related to entrepreneurship is statistically insignificant in increasing entrepreneurial tendencies
Conclusions and Recommendations
• Permanent employment has the highest mean cash wage
• Lack of takers in government programs to facilitate both employment and entrepreneurship
• Programs do not lead to permanent employment and entrepreneurship
• Education and age facilitate both employment and entrepreneurship
• Participation of youth in government initiatives
• Make sure the Accountancy, Business & Management Strand of Senior High School works
• TESDA and barangay officials must cater to those not in school
Youth Unemployment and Entrepreneurship in the Philippines
This study was funded by the Angelo King Institute for Economic and Business Studies (AKIEBS) and the Community Based Monitoring System (CBMS) Network under the project entitled Social Protection for the Informal Sector (SPIS) and Youth Employment and Entrepreneurship (YEE).