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Stuck at a Crossroad: A Microeconometric Analysis of Fertility and Married Female Labor Force Supply in the Philippines

Ingco, Katrina Nicole and Pilitro, Ver Lyon Yojie (2016): Stuck at a Crossroad: A Microeconometric Analysis of Fertility and Married Female Labor Force Supply in the Philippines.

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Abstract

This study investigated the link between fertility and married female labor supply of Filipino women using instrumental variable (IV) probit regression using microeconomic data from the National Demographic and Health Survey (NDHS) published in 2013 with 7,628 married women respondents. The first stage regression results showed that couple’s age has a direct relationship on fertility. On the other hand, variables such as secondary education of married female’s husband as compared to non-educated husband, household wealth of all classes relative to the poorest household, and age of female at first marriage has an inverse relationship with the number of children. Second-stage regression results showed that fertility increases the probability of a married female to look for employment. Married female’s age, higher educational attainment relative to non-educated married female, and household wealth as opposed to the household class with the least wealth have direct relationship with married female employment. Lastly, marginal effects showed that additional children will increase the likelihood of a married female to participate in the labor force by 3 percentage points. Increase in married female’s age also increases her probability of getting employed by 0.9 percent. The chances of having labor market activity is higher by 13 percentage points if a married female attains higher education as compared to a married female that has no formal education. If a married female belongs to a household belonging to the highest wealth quintile among all classes in terms of wealth, she has the greatest chance to be employed by 16 percentage points relative to a married female who is a member of a household belonging to the lowest wealth quintile.

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