Why Do Filipinos Desire to Work More Hours?

Abstract

In 2018, 16.4% of Filipino workers stated during the Labor Force Survey (LFS) period that they wanted to have more work hours in their present jobs, or to have an additional job, or to have a new job with longer work hours, i.e., declared themselves underemployed. This study inquires why. Analysis of the 2015 LFS data shows that 53% of the underemployed worked less than 40 hours in a week (visibly underemployed) and 47% worked at least 40 hours in a week (invisibly underemployed). 82% of the underemployed were in agriculture and services. By sector, underemployment in agriculture represented 27% of total employment in agriculture. The corresponding shares for industry and services were 21% and 16%, respectively. In addition, 54% of the underemployed admitted that they did not look for additional jobs. Using a multinomial logit model to determine the characteristics of the underemployed, we find that, relative to the full-time and not underemployed: (i) the major determinant of being visibly underemployed is basic pay. Region, educational attainment, type of sector, and primary occupation are much less important determinants; and (ii) sex, region, educational attainment, marital status, and basic pay, are determinants of being invisibly underemployed.