Youth employment and entrepreneurship in the

Philippines*

GOZUN, Brian C., Ph.D. RIVERA, John Paolo R., Ph.D. De La Salle University Asian Institute of Management Manila, Philippines Makati City, Philippines brian.gozun@dlsu.edu.ph JRivera@AIM.EDU

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).

Global youth unemployment in 2013 reported by the International Labor Organization (ILO) at 74.5 million (a 3.8 million increase from 2007).

In the Philippines, according to the Department of Labor and Employment (DOLE), unemployed Filipino youth accounts for more than half of the Philippines’ jobless sector.

In 2014, more than half of the 2.9 million unemployed Filipinos in the country

Build and foster the entrepreneurial mindsets and skills of both the young and disadvantaged people(aside from youth employment).

A need to identify which constructs will make the Filipino youth employable and entrepreneurial.

Hence, this study explored how to alleviate youth unemployment through entrepreneurship.

What is the extent of unemployment among the youth?

“How do demographic characteristics, level of education, and availment of government in-aid programs influence an individual’s likelihood to be employed or to be entrepreneurial?

To estimate the likelihood that an individual will be employed;

To estimate the likelihood that an individual will engage in entrepreneurship; and,

To provide recommendations on how to encourage the youth to be entrepreneurs.

CBMS Accelerated Poverty Profiling dataset. Conducted in 2013 whose samples are individuals

from the different schools of De La Salle Philippines (DLSP). DLS – College of St. Benilde; DLSU – Dasmarinas; DLSU – Manila; De La Salle Lipa; La Salle University – Ozamiz; University of St. La Salle – Bago.

Multinomial logistic regression model. Three categorical outcome:

With work - employed; Without work, with business – entrepreneurial; Without work, without business – can be unemployed or

unproductive. Demographic Characteristics, Educational

Attainment, and Training/Entrepreneurial Programs.

The Generalized Method of Moments To address some econometric problems on some

equations used in this study

Descriptive Statistics

Number ofIndividuals

%

With Work 360 3.56

Permanent Employment 120 33.33

Short-term, Seasonal, Casual employment

232 64.44

Worked on different jobs on day to day or week to week

8 2.22

Without work, with business 87 0.86

Without work, without business 9661 95.58

Total 10,108 100

An increase in cash wage received significantly increases the likelihood of being employed compared to other categorical outcomes.

Gender is a significant predictor of being employed where being male increases the likelihood of being employed.

Being an OFW significantly increases the likelihood of being employed

Education and age are facilitating factors inacquiring employment but not in fosteringentrepreneurship.

Programs related to the provision of assistancepackages reduces the probability that a youthwould be employed or engaged in entrepreneurialactivities

Provision and availment of such programs increasesthe probability of having no work, no business

Conclusion and Policy Recommendations Government Programs

Intended to facilitate both employment and entrepreneurship but significantly reduced the probability that a youth would be employed or engaged in entrepreneurial activities.

Could possibly be more effective if their focus is on more long-term and sustainable activities rather than one- time seminars or seasonal employment opportunities whose effects are only felt in the short-term.

Increase participation of the youth in government-sponsored programs that foster the entrepreneurial spirit.

Maximize the reach of the programs The various entrepreneurship programs of the

government must have wider breadth and scope to reach the youth while they are still in school.

Those who are not in school can be reached by TESDA or through their barangay officials.

Ensure the harnessing of the entrepreneurial mindset that will lead to successful and sustainable youth entrepreneurs.

Conclusion and Policy Recommendations