Youth Unemployment and Entrepreneurship in the Philippines

Transcription

1 Youth Unemployment and Entrepreneurship in the Philippines Brian C. Gozun, De La Salle University John Paolo R. Rivera, Asian Institute of Management 12 th 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).

2 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

3 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?

4 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

5 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

6 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.

7 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.

8 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

9 Career status of the Filipino youth Permanent Short-term, seasonal, casual Worked on different jobs on day to day or week to week Entrepreneurial Unidentified 72.35

10 Gender Distribution Male Female

11 Male Distribution Permanent Short-term, seasonal, casual Worked on different jobs on day to day or week to week Entrepreneurial Unidentified

12 Female Distribution Permanent Short-term, seasonal, casual Worked on different jobs on day to day or week to week Entrepreneurial Unidentified 77.06

13 Age Distribution (by bracket)

14 Where is the youth?

15 What did the youth avail?

16 How much does the youth earns?

17 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

18 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

19 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).