By: Cristine Ann B. Parungao
The number of workers settling on the minimum wage is increasing every year. Most of these individuals are believe to be younger and less educated. They are the individuals who may need cash in a short term basis and prefer to work without sufficient benefits.
But is there an effect on how the minimum wage affects the country’s economy? According to a study of Leonardo A. Lanzona, Jr. on the “Effects of minimum wage on the Philippines economy”, “Minimum wages, more than other forms of regulation, are more directly associated with unemployment.”
“Firms (In the Philippines) are reluctant to hire younger, less educated and female production workers.” according to professor and ACERD Director Leonardo A. Lanzona Jr., on his Journal titled: Effects of minimum wage on the Philippine economy, at Philippine Institute for Development Studies (PIDS).
Lanzona is a professor at Ateneo De Manila on the School of Social Sciences. He finished his doctorate degree at the University of the Philippines, Diliman.
For years, people have been questioning the Philippines’ economic growth while there is still big percentage of jobless Filipinos in the country.
By: Jessamine Elise Sagcal
A study, entitled “the effects of minimum wage on the Philippine economy,” was recently published by a PIDS (Philippine institute of development studies) researcher on the PIDS website. The study gives reason to the country’s economic state and minimum wage’s effect on the employees.
Leonardo A Lanzona Jr., the researcher of the study and Atenean professor, took account the Philippine Labor Code with regards to minimum wage or the Wage Rationalization Act (Republic Act 6727) formed during the Marcos era. According to him, the code showed bias and was in favor of labor and against management which became the reason for numerous effects, such as the increase in unemployment.