Labor Mismatch in The Philippines Jasa PDF

UNIVERSITY OF SANTO TOMAS
Labor Mismatch in the Philippines: Analysis of the Impact of

Education-Occupation Mismatch on Wage
and Analysis of the Beveridge Curve
An Undergraduate Thesis
Presented to the
Economics Department
Faculty of Arts and Letters
University of Santo Tomas
In Partial Fulfillment of the

Requirements for the Degree
Bachelor of Arts Major in Economics
By
Jasa, Mary Del A.
Jasa, Mary Ann A.
Corpuz, Edralyn L.
February 2013
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APPROVAL SHEET
This thesis entitled: Labor Mismatch in the Philippines: Analysis of

the Impact of Education-Occupation Mismatch on Wage and Analysis of
the Beveridge Curve, prepared and submitted by Mary Del A. Jasa, Mary Ann
A. Jasa and Edralyn L. Corpuz has been approved and accepted in partial
fulfillment of the requirements for the degree, BACHELOR OF ARTS IN
ECONOMICS.
_________________________
Emmanuel Lopez, Ph.D.
Adviser
PANEL OF EXAMINEES
Approved by the Committee on Oral Examination with the grade

of____________.
_________________________
Emmanuel Lopez, Ph.D.
Chairman
__________________ _______________________
Alvin Ang, Ph.D. Carlos Manapat, Ph.D.
Panel Member Panel Member
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ACKNOWLEDGEMENT
The researchers- Maan, Madel & Ral would like to express their sincerest
appreciation and gratitude to the following persons who have greatly helped in the
completion of this research:
Dr. Alvin Ang for patiently helping them in accomplishing the initial works and first
draft of their thesis.
Dr. Emmanuel Lopez, their adviser, for his valuable suggestions and guidance.
Ms. Rosario Abragan, Administrative Assistant II- Databank and Information

Services Division of the National Statistics Office, for patiently helping them in
acquiring and analyzing the data from NSO.
Kuya RJ Angeles, Vice President and COO at Romar Commodities, Inc.,

Associate Director at Standard Chartered Bank and teaching fellow at University of
the Philippines, for the assistance in suggesting data sources and methodology for
their thesis.
Kuya Jeck Samson and Ate Rona Jasa for unconditionally sharing their time in
imparting their knowledge and experience in doing their undergraduate thesis at
the University of the Philippines; for supervising them in the completion of their
thesis and inspiring them not to give up in the course of doing the research.
Tita Mary Ann Mendoza, for giving them recommendations about their study.
Mang Eseng for being their driver from University of Sto. Tomas to NSO, to
NSCB, to University of the Philippines, to Makati and from UST to Bulacan in the
course of doing the entire research.
Mr. and Mrs. Edgardo Corpuz (Papa and Mama) for the moral and financial
support as well as for helping them to coordinate with NSO.
Engr. and Mrs. Rodel Jasa (Daddy and Mommy) for the financial support and for
motivating them to believe in themselves and to be the best of who they can be.
Their family, siblings, relatives, classmates and friends from 4ECO1 & 4ECO2
for all the prayers, love and sacrifices for the success of the thesis.
And above all, to God Almighty for giving them strength, patience, knowledge and
understanding for the very start up until the end and for making all of these
success. To God be the glory!
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ABSTRACT
Title: Labor Mismatch in the Philippines: Analysis of the Impact of Education-

Occupation Mismatch on Wage and Analysis of the Beveridge Curve
Researchers:
Jasa, Mary Del A.
Jasa, Mary Ann A.
Corpuz, Edralyn L.
School: University of Santo Tomas
Degree: Bachelor of Arts
Major: Economics
Year: Fourth Year
Adviser: Dr. Emmanuel Lopez
In analyzing the education-occupation mismatch on wage, the

researchers run a regression of the dummy variable: MATCH variable relating
to the college graduates that were employed either in matched or unmatched
occupations against the log of hourly wages. A matched individual is the one
having the primary occupation in line with his/her field of study. An unmatched
individual is the one having the primary occupation not in line with his/ her field
of study. The college graduates under these 3 fields of study -Education, Social
Sciences, Business and Law & Services who pursue with the occupation
related to their field of study earn higher wages rather than having occupation
not related to their field of study (lower wages). While, the college graduates
under these 5 Fields of Study (Humanities and Art, Science, Engineering,
Manufacturing and Construction, Agriculture, Health and Welfare) who pursue
with the occupation related to their field of study (matched), earn lower wages;
while if they pursue with the occupation not related to his/her field of study
(unmatched), they could higher wages. Also, the Beveridge Curve showed a
positive correlation (0.768721874) between the unemployment rate and job
vacancy rate. From this point, the researchers conclude the existence of the
education-occupation mismatch in the Philippines.
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CHAPTER 1: INTRODUCTION
I. Background of the Study
It is evident that the distribution of income in an economy is related to the

amount of education people have accumulated. The educational attainment of
a person will greatly reflect on the career and the job he will pursue that will
significantly amount the income fitted for his labor.
Mismatch exists in the labor market in the form of educational or skills

mismatch, education-job mismatches. According to Allen & van der Velden
(2001), these are reported to have serious effects on wages and associated
with negative labor market outcomes. The basic idea is that, although higher
education raises productivity in general, the actual level of productivity realized
is also determined by the match between educational and job level.
There are different kinds of mismatches. Spatial mismatch refers to the

disparity between where people who need jobs live and where jobs are
available. An example by Buchan & Calman (2004) is when health workers
typically prefer to live and work in larger cities that offer greater job
opportunities and infrastructure resulting in greater shortage in rural settings
and unemployment or underemployment in urban settings.
Skills mismatch refers to the situation where the workers‟ skills and
education are not adequate for the demands of jobs in the current economy.
There is a mismatch between the skills workers possess and what jobs require,
what economists call an imbalance between the supply of and demand for
human capital. Handel (2003) said that skills mismatch can describe situations
in which workers‟ skills exceed or lag behind those employers seek. An
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example of this in the Philippine setting is the oversupply of nurses and lack of
demand for them. The Filipino nurses may have difficulty entering the US labor
market until 2020 since the shortage of nurses in America ended in 2010 and
now, they have ample supply of US-educated nurses. The government is
pushing for new legislation that would establish a special local jobs plan for idle
Filipino nurses, now estimated at more than 300,000.
In line with these, the focus of this research is to specifically analyze the
education-occupation mismatch and its impact on wage. This research calls for
a need to look on the issues of mismatches since it affects the labor market. As
in the case of the Philippines, there is indeed a need to look and review labor
mismatch because this causes high unemployment rate. The evident reason
observed, is that college graduates‟ skills do not match with the available job
vacancies and the specific fields they should be placed on is already occupied,
therefore they will be left unemployed. The Department of Labor and
Employment said that many of the graduates do not satisfy what the economy
needs. They are either not ready for the jobs or they don‟t possess the needed
skills or knowledge needed for the work they applied for.
Mismatch can also be noticed when workers and jobs are randomly
assigned to labor markets. Each labor market clears at each instant but some
have more workers than jobs, hence unemployment, and some have more jobs
than workers, hence vacancies. According to Shimer (2005), as workers and
jobs move between labor markets, some unemployed workers find vacant jobs
and some employed workers lose or leave their job and become unemployed.
Thus, this research will focus also analyze the Beveridge Curve (ratio of
vacant jobs and unemployed workers) that will be important in understanding
the existence of mismatch on the Philippine labor market.
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II. Objectives of the Study
The objectives of the research are:

 To be able to analyze the situation of the Philippine labor market
specifically the presence of the education-occupation mismatch and its
effect to wage
 To be able to see the importance of a balanced labor market where job
vacancies can accommodate workers available for work
 To provide possible information that would be important for the
government in solving certain issues in the labor market
III. Statement of the Problem
The research is intended to answer the following questions:
1. Does labor mismatch exist in the Philippines? To what extent?

2. How does education- occupation mismatch affect wage?
3. Which fields of study reflect the existence of the labor mismatch in the
Philippines?
4. What are the negative effects of the labor mismatch in the labor market?
5. Does the Beveridge Curve (unemployment rate and job vacancy rate
ratio) exist in the Philippines?
6. Does the Beveridge Curve reflect the positive relationship between the
unemployment rate and job vacancy rate signifying the occurrence of
labor mismatch?
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IV. Significance of the Study
The analysis of educational-occupational mismatch and the existence of

the Beveridge Curve in the Philippine labor market would be significant to the
following:
a. The Government- Mismatch worsens the employment circulation of

the labor market and brings negative effects to the workers in the
labor market who face occupational downgrading in their careers as
in the case of underemployment in which workers that are highly
skilled work in low paying and low-skilled jobs. The research could
help the government in addressing these problems.
 The Department of Labor and Employment (DOLE) - The study

would be helpful for the DOLE to find possible solutions to address
the negative effects of the existence of labor mismatch such as
providing job opportunities and skills training that would augment the
mismatch experienced by the mismatched individuals in their line of
work.
 Department of Education (DepEd), Commission on Higher Education

(CHED) and Technical Education and Skills Development Authority
(TESDA) - The study would be helpful to the following education
sectors as through the study, they can have knowledge on what field
of study they should give more focus and attention as according to
what the labor market demands in order to solve the problem of
underemployment and unemployment.
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b. The Students- The study would be beneficial to the high school students
as the study would provide information that can help them on their
choice of the field of study (course) that they would be taking in their
college. The study can also help the graduating college students in
choosing their path of careers.
c. Economy- The research would be significant for it can provide the basis
of the government in taking actions to properly utilize the labor force in
order for them to be productive and therefore be instruments in creating
a better economy.
d. The researchers- The research would be significant to the researchers

for this paper will enable them to apply what they have learned in the 4
years of study and this would enable them to learn and discover new
findings relevant to their field of study, Economics.
V. Scope and Limitation
The study will only cover the following parameters. The research
analyzed the impact of education- occupation mismatch on wage in the
Philippines through the use of the data from the National Statistics Office‟s
Labor Force Survey (LFS) October 2011 and the Philippine Standard
Occupational Classification (PSOC).The researchers used the CSPro or
Census and Survey Processing System which is a public domain statistical
package provided by NSO to obtain the necessary data to be used in the study.
The research does not deal on individual survey data.
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In making an empirical analysis of the existence of the Beveridge Curve
(unemployment-vacancies ratio), the researchers used the data of job vacancy
rates obtained from Bureau of Labor and Employment Statistics and the data of
unemployment rates was obtained from Philippine National Statistical
Coordination Board only for the years 1999 up to 2009.
VI. Hypotheses
There is no significant increase in wage when the education and occupation of

a college graduate is matched.
There is a significant increase in wage when the education and occupation of a

college graduate is matched.
This hypothesis will be tested in each of the 8 Major Classifications of the Field
of Study taken by the college graduates:
1. Education
2. Humanities and Arts
3. Social Sciences, Business and Law
4. Science
5. Engineering, Manufacturing and Construction
6. Agriculture
7. Health and Welfare
8. Services
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VII. Definition of Terms
a. Conceptual Definition
 Education- is a powerful driver of development and one of the strongest

instruments for reducing poverty and improving health, gender equality,
peace, and stability (World Bank).
 Occupation- refers to an activity in which one engages; the principal

business of one's life (Merriam Webster Dictionary)
 Mismatch- refers to the situation where two objects or people do not go
together
 Matched- refers to one that closely resembles or harmonizes with

another
 Unmatched- refers to one that does not closely resembles or

harmonizes with another
 Wage- refers to an employee's base pay is the pay they will receive at a
minimum, while extra forms of pay may or may increase the total pay
above this level (Investopedia)
 Beveridge Curve- refers to the unemployment-vacancy ratio wherein the

negative/inverse relationship depicts a balanced cycle in the labor
market implying that the job matching process in the labor market is
functioning well while the positive relationship implies that there is a
mismatch in the labor market.
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b. Operational Definition
 Education- refers to the field of study taken by the college graduates
 Occupation- refers to the primary occupations provided by the National

Statistics Office‟s (NSO) regularly conducted Labor Force Survey‟s
(LFS) October 2011 (4th Quarter of 2011) public user file with wage data
 Mismatch- refers to the situation when education (field of study taken by

college graduates) do not match with his/her occupation taken after
graduation
 Matched- refers to the situation when an individual‟s occupation is in line

with his/her field of study
 Unmatched- refers to the situation when an individual‟s occupation is not
in line with his/her field of study
 Wage- refers to the log of hourly wages which can be obtained by

dividing the basic pay per day by normal working hours per day for the
past week
 Beveridge Curve- refers to the unemployment-vacancy ratio wherein the

negative/inverse relationship depicts a balanced cycle in the labor
market implying that the job matching process in the labor market is
functioning well while the positive relationship implies that there is a
mismatch in the labor market.
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CHAPTER 2: REVIEW OF RELATED LITERATURE
The review of the related literature for this study focuses on the different studies
concerning the impact of education-occupation mismatch on wage differentials
and the Beveridge Curve.
I. Impact of Education-Occupation Mismatch on Wage
Education and Income Distribution

Tilak (1989) presented the following studies explaining the relation
between education and income distribution. Simon Kuznets (1955) predicted
that income distribution in capitalist countries would become more equal as the
labor force becomes more educated. As Knight and Sabot (1983) observed, the
change in educational composition of the labor force itself has an effect on
inequality. Whether it raises or lowers inequality, assuming all other factors are
held constant, depends on the relative sizes of different educational categories,
their relative mean wages, and their relative wage dispersions. The process of
education effecting income distribution can be simply explained as follows:
education creates a more skilled labor force. This will produce a shift from low
paid, unskilled employment to high paid, skilled employment. This shift
produces higher labor incomes, a reduction in skill differentials and an increase
in the share of wages in total output.
The Impact of Education and Mismatch on Wages

In the research study of Muysken and Hoppe (2002), The Impact of
Education and Mismatch on Wages: Germany, it is cited that in the study taken
in the Netherlands, Muysken and Ruholl traced that personal characteristics
which entails education and experience, and job characteristics which entails
the skills required are the two important determinants used to explain the wage
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differentials since the changes in personal characteristics explains about half of
the variation of wages and job characteristics explains at least thirty percent of
the variation of wages. This assumption was supported by the established
similar results in the United States.
In the estimation results of the study, it is figured out that variables used
in personal characteristics which pertains to age, working experience,
education received and number of hours worked, and job characteristics which
pertains to size of the firm and level of skills required, are significant in defining
the variation of wages, in fact as the job requires a higher level of skills the
earning wages yields higher. The experiences attained by a worker also
generate a positive impact towards defining wage. Job characteristics and
experience plays an important part in determining the wage differences of the
educational category of workers and the educational level is the one to define
the remaining part of it.
Education and Occupation Mismatch in the Labor Market

The educational market and the labor market are the two market
systems that facilitate the matching of education and occupations. Both are
systems of controlling demand and supply, and systems of evaluation and
allocation of positions and agents. As a rule, education qualifies mainly for the
labor market, not for the work or occupation itself (Masuda, T. & Muta, H.
1996).
Ahola et al. (1991) concluded that there are two dimensions of matching.
First is the level of education which is considered to be the primary dimension
of matching process that is related and connected to the segmentation of
structural classes and to the reproduction of social positions. And the
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secondary dimension is the field of study wherein it performs its act within the
different levels of education (Ahola, S. 1991)
The study, “The Matching of Educational and Occupational Structures in

Sweden and Finland” explains that apart from having a strong connection of
education and occupation in the professional fields, individuals who possess
different educational backgrounds can also have an easy way to get matched
up with various occupations in a relatively elastic way (Ahola et al. 1991).
Occupational domains are narrowing or sometimes widening in certain

fields. Narrowing occupational profiles can be found in the fields where
vocational/professional educational programmes have been developed to meet
the needs of specialized occupational tasks (Ahola et al. 1999).
Vocational Schooling as an Advantage Tool in the Labor Market

The study of Vocational Schooling Occupational Matching and Labor
Market Earnings in Israel concluded that vocational schooling is more cost-
effective than the general academic training in Israel. The students who came
from vocational programs and seek out for work that are related to their field of
study had earned more. In fact, their wages are generally higher by up to ten
percent a month than those who studied academic secondary schools but
found employment in occupations not related to their field (Neuman, S. &
Ziderman, A. 1991).
Productivity in Matched Occupation-Education

In the study of Patrick van Eijs and Hans Heijke (1996), The Relation
between the Wage, Job-related Training and the Quality of the Match between
Occupations and Types of Education, it is stated that efficiency and wages
depend on the matching of the demanded and attained abilities and therefore
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there will be a higher wages if there will be a match on these two that causes a
higher productiveness. This concludes that through the matching of the
laborer‟s specific education skills with the occupational job characteristics
which yields efficiency, the human capital of the labor force is being utilized well
and this paves a way to achieve the right and deserved wage for the rendered
skill.
Income Penalty of Mismatch
But in the labor market there are existing problems that hinders the right
allocation of deserved wages and this is due to the education-occupation
mismatch that creates an income penalty to the workers. A study supporting
this conclusion is the pioneering paper of Robst which had shown that in the
data wherein US college graduates who do not matched their occupation to the
major course they have taken had almost 11 percent lower annual income as to
be compared to the graduates who had a matched one.
Also in the study done by the 2006 Survey of Labour and Income
Dynamics (SLID) of Canada it is concluded in the survey results that those 58
percent workers reported who had matched their attained education closely
related to their present work and those 19 percent reported who had matched
their attained education somewhat related to their present work have a 35
percent higher wage given a $27 mean wage rate than those 23 percent
workers reported who did not found their attained education to be related to
their present work given $20 mean wage rate.
Reasons for having Occupations not related to the Field of Study

The general personal reasons for choosing the occupation even if it is not
related to the field of study are job security wherein the worker had found the
secureness, assurance and continuity of gainful employment to the said
occupation even if it is not inclined to his taken course, professional growth in
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which they had achieved the sense of fulfillment and usefulness of their
personal drive on the said occupation they have taken even if it is unmatched
to their field of study, pay, which pertains to monetary reason of earning a
higher compensation to the unmatched occupation than to the related one, and
quality of work life that refers to the benefits, environment and way of life that
the worker is attaining which provides him the sense of belongingness and
satisfaction (Edgewise.ph, 2010). Prejudiced situations is depicted in the
condition of the nurses who are under the health and welfare field of study in
way that nurses fail to pursue their careers not only because of financial
incapability of hospitals to give them a just compensation but worst is they
themselves are paying just to gain experience and after they will still not be
hired (Filipino Nurses Blog). And in the case of the agricultural workers they
had a greater tendency to prefer not to be in lined to their field of study because
of the existence of non-competitive salaries and incentives due to inefficient
utilization of our agricultural sector; therefore attaining an occupation
unmatched in this field would provide them a higher wage (Rwanda Skills
Survey 2012 Agriculture Sector Report).
II. Beveridge Curve

The Cyclical Behavior of Equilibrium Unemployment and Vacancies
This journal explains that with an increase in labor productivity
(interpreted as a technology or supply shock in one-sector model and referred
as the preference or demand shock changing the relative price of goods in
multi-sector model) in relation to the value of nonmarket activity (referred as
leisure) and to the cost of advertising a job vacancy makes unemployment
relatively expensive and vacancies relatively cheap. The market substitutes
toward vacancies, and the increased job-finding rate pulls down the
unemployment rate, resulting to a downward sloping Beveridge curve
(vacancy-unemployment ratio) (Shimer, 2005).
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This study presented that the increase in hiring, shortens unemployment

duration, increases workers‟ threat in wage bargaining, and increases also the
expected present value of wages in new jobs. Then, it can be said that higher
wages absorb most of the productivity increase, thus reducing the incentive for
the creation of vacancies. Therefore, the labor productivity shock results
primarily in higher wages, with little impact on the unemployment, vacancy, and
job-finding rates (Shimer, 2005).
This study presented that an increase in separations results to

decreasing employment duration, increasing unemployment rate and so
therefore increasing vacancies. As a result, fluctuations in the separation rate
or separation shocks generate an increase in both unemployment and
vacancies (Shimer, 2005).
According to search theory, unemployed workers have left their old job
and are actively searching for a new employer. It is a theory of former steel
workers moving to a new city to look for positions as nurses (Lucas and
Prescott 1974). In contrast, this study emphasizes the mismatch theory in
which unemployed workers are attached to an occupation and a geographic
location in which jobs are presently scarce. In here, it is a theory of former steel
workers choosing to remain near a closed plant in the hope that it reopens
(Shimer, 2005). These two theories are complementary and it is reasonable to
think that mismatch may be as important as search in understanding
equilibrium unemployment.
The Beveridge curve is part of the study since it reflects the efficiency of
the job matching process through depicting the state of the labor market using
the shifts along the curve that illustrates occurring regular changes in the
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demand and supply of labor. In the study of skills mismatches and labor
mobility of the European Union, they concluded that having an upturn shift in
curve reflects that there is a higher vacancies which shows that there is a
higher supply of jobs then definitely exemplifies lower unemployment and this
greatly explains that it indicates labor shortages while on the other hand the
downturn shift in curve reflects that there is a lower vacancies which shows that
there is a lower supply of jobs then definitely exemplifies lower unemployment
and this greatly explains that it indicates labor surplus (Shimer, 2005).
William Beveridge identified and implied the negative relationship

between unemployment and job vacancies that depicts a balanced cycle in the
labor market because a negative relationship between the two reflects that the
job matching process in the labor market is functioning well. Therefore if there
will be a positive relationship between them wherein a direct relationship
between them exists, mismatch in the labor market occurs (Shimer, 2005).
The conclusions made in this study was significantly discussed and

proven in the said research through the evaluation of the major skills challenge
of Europe wherein high levels of unemployment is still existing even if job
vacancies also started to increase which illustrates that mismatch in their labor
market exists which may be indicated by first, qualification mismatch that
pertains to the mismatch between educational qualifications a worker
possesses and the prerequisites of the job (Shimer, 2005). Situations involved
in this mismatch are over-education wherein a worker possesses more required
educational qualifications and under-education in which a worker possesses
fewer educational qualifications. Second is the structural unemployment that
pertains to the mismatch between labor demand and skills and the location of
the potential workers. Third, skills mismatch that pertains to incompatibility
between the skills possessed by the worker and the demanded skills of the job,
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and situation involves are skill deficit wherein the worker‟s skill didn‟t fit into the
job prerequisites and skill underutilization in which worker‟s skill went beyond
the job prerequisites. Fourth, Regional and sectoral mismatch which exists
when job openings in the locations and sectors are open but not well matched
with potential workers.
Labor Market Mismatches

Problems of matching between labor supply and labor demand in
Belgium are visible from the Beveridge curve, which shows the relationship
between the unemployment rate and the job vacancy rate. Belgium has both a
significant pool of unfilled job vacancies and persistent unemployment implying
that both unemployment rate and job vacancy rates move in the same
direction. This observation rises to the problem of labor mismatch or to the
question of how labor supply matches up with labor demand. The reasons for a
mismatch between the two can be cyclical, frictional or structural, for example
when the educational level of job-seekers does not correspond with the profiles
sought on the labor market, or when there is a lack of geographic mobility
(Zimmer, 2012).
2009-2010 Bureau of Labor and Employment Statistics (BLES)

Integrated Survey (BITS)
The 2009/2010 BITS results showed that from January 2009 to January
2010 the total number of job vacancies are at 276,940 while job applicants is
roughly 6 times higher at 1,969,976 for all occupations. Manufacturing, real
estate, renting and business activities, and education industries had the most
number of hard-to-fill vacancies. The most common problems in filling up
vacant positions include lack of competency, high expectations in wage/salary,
and lack of work experience.
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III. THEORETICAL FRAMEWORK
A. Impact of Education- Occupation Mismatch on Wage
Recent studies of education and wage determination are almost always

embedded in the framework of Mincer's (1974) human capital earnings function
(HCEF).
According to this model, the log of individual earnings (y) in a given time period
can be decomposed into an additive function of a linear education term:
𝑙𝑜𝑔𝑦 = 𝑎 + 𝑏𝑆 + 𝑐𝑋 + 𝑑𝑋 2 + 𝑒
where S represents years of completed education, X represents the number of

years an individual has worked since completing schooling, and e is a statistical
residual. In the absence of direct information on experience Mincer proposed
the use of "potential experience": the number of years an individual of age A
could have worked, assuming he started school at age 6, finished S years of
schooling in exactly S years, and began working immediately thereafter: X =A -
S - 6.
B. Beveridge Curve
1. Skills Mismatches and Labor Mobility

A study done in the Member States of the European Union showed that the
unfilled job vacancies co-exist with high levels of unemployment. The so-called
Beveridge curve, which relates unemployment rates to job vacancies, typically
shows a negative relationship between the vacancy rate and the
unemployment rate (Shimer, 2005).
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The fact that unemployment was still rising when vacancies started to
increase reflects problems in the job matching process, which may be related
to mismatches in skills/educational qualifications required for a certain job and
regional/sectoral mismatches.
The Beveridge curve reflects the efficiency of the job matching

process.In the study, the curves of Member States are analyzed to help us
understand whether these structural changes are taking place.
- Shifts along the curve represent cyclical changes in the demand for labor
(higher vacancies and lower unemployment in upturns indicating labor
shortages; lower vacancies and higher unemployment in downturns indicating
an excess of labor)
- Shifts of the curve towards the left or right are indicative of structural changes.
Increases in long-term unemployment will push the curve away from the
starting position, pointing to potential mismatches in the labour market.
2. Mismatch by Shimer
The study conducted in the mismatch model of Shimer significantly showed
the negative correlation between unemployment and vacancy that pertains to
Beveridge curve and the positive correlation between rate wherein the
unemployed workers are able to discern jobs and the vacancy-unemployment
ratio.
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Theory
The unemployment and vacancy rates are dependent on the exogenous
number of workers per market M and the endogenous number of jobs per
market N.
The vacancy-unemployment (v-u) ratio is V (N)/U(N) and the unemployment

and vacancy rates are u(N) =U(N)/M and v(N) =V (N)/N.
Therefore unemployment and vacancies are being affected by productivity

shocks due to the unemployment and vacancies‟ impact on the number of jobs
per market.
The following proposition demonstrates how:

The unemployment rate u is increasing in the number of workers per labor
market M and decreasing in the number of jobs per labor market N.
The vacancy rate v is decreasing in the number of workers per labor market M
and increasing in the number of jobs per labor market N.
In this, there are a lot of implications. First, a higher productivity encourages

firms to produce more jobs, and therefore this would raise the number of jobs
per labor market N, and hence diminishes unemployment rate and upsurges
vacancy rate. Thus it presents to us that the impact of productivity shocks
cause a downward-sloping vacancy-un employment (v-u) locus movement.
Second, the unemployment and vacancy rates both decreases whenever there
is a proportional increase in both M and N.
Doubling M and N is equivalent to merging randomly selected pairs of labor

markets. If both markets have unemployment, this merger does not affect the
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unemployment or vacancy rates, and similarly if both markets have vacancies.
But merging a market with unemployment and a market with vacancies reduces
the unemployment and vacancy rate in both.
Measurement
In the United States, the Bureau of Labor Statistics (BLS) has measured job
vacancies using the JOLTS. The said measurement is the most reliable time
series for vacancies in the U.S.. In accordance to the prerequisites of job
openings, the BLS specified that job opening entails first, there is a specific slot
of position that occurs, second, within 30 days, the work could start, and third,
to fill in the vacant position, the employer is enthusiastically hiring outside the
institution itself. Wherein, active recruiting pertains to the commitment of the
institution in rendering contemporary efforts in fulfilling the opening through
advertisement and other methods of publicity. Also the time preferential such
as full-time, part-time, permanent, temporary, and short-term openings are
incorporated.
The vacancy rate is measured as the ratio of vacancies to vacancies plus

employment.
In order to measure the unemployment rate of each month, The Bureau of

Labor Statistics (BLS) uses the Current Population Survey (CPS) wherein it
entails a measurement procedure of using household questionnaire.
The unemployment rate is measured as the ratio of unemployment to the sum

of unemployment and employment.
The strong negative correlation between unemployment and vacancies over

this time period is shown by the empirical Beveridge curve.
24
IV. CONCEPTUAL FRAMEWORK
A. The Model used by the Researchers in the Analysis of Education-

Occupation Mismatch effect on wage
This section provides a framework for the regression model to be estimated:

no formal model of wage determination is presented; the researchers draw
from the previous theoretical and empirical studies (Mincer‟s Model) in
analyzing the likely effects of certain variables on wages.
In this study regarding the impacts of education and occupation mismatch

on wages, the researchers will use Mincer‟s human capital earnings function as
the basis. The researchers will use this function:
𝐿𝑛 𝑊𝑖 = 𝛼 + 𝛽𝑀𝐴𝑇𝐶𝐻 + 𝑢
Where:
𝐿𝑛 𝑊𝑖 = log 𝑜𝑓 𝑕𝑜𝑢𝑟𝑙𝑦 𝑤𝑎𝑔𝑒𝑠 /𝑒𝑎𝑟𝑛𝑖𝑛𝑔𝑠
MATCH= field of study and occupation category 1=matched 0=not matched
Education Matched
or Effect Wage
Occupation Unmatche
d
25
B. Beveridge Curve
To analyze the mismatch between vacant jobs and unemployed workers in

the Philippines, the researchers will use Shimer’s measurement in obtaining the
Beveridge Curve.
The vacancy rate is measured as the ratio of vacancies to vacancies plus

employment.
The unemployment rate is measured as the ratio of unemployment to the sum

of unemployment and employment.
Job- vacancy Unemployment

rate rate
26
CHAPTER 3: DATA AND METHODOLOGY
A. The Model used by the Researchers in the Analysis of Education-

Occupation Mismatch effect on wage
1. Research Design
In the study, the researchers used a quantitative explanatory research
methodology which attempts to explain the functional relationship between the
variable to be estimated (dependent variable) and the variable that accounts for
the changes (independent variable). The researchers worked on the
educational and work-related variables across the country. The dependent
variable is the log of hourly wage. The independent variable that is used is a
dummy or binary variable: MATCH variables (being educationally and
occupationally matched or unmatched).
2. Sources of Data
The cross-sectional data the researchers used was sourced from the
National Statistics Office‟s (NSO) regularly conducted Labor Force Survey‟s
(LFS) October 2011 (4th Quarter of 2011) public user file with wage data. The
researchers used the CSPro or Census and Survey Processing System which
is a public domain statistical package provided by NSO to obtain the
necessary data to be used in the study.
3. Tools for Data Analysis

In doing the regression analysis, the researchers utilized the Statistical
Package for the Social Sciences (SPSS) 17.0. The researchers also did
hypothesis testing using the t test. According to Gujarati (2004), in the
language of significance tests, a statistic is said to be statistically significant if
the value of the test statistic lies in the critical region. In this case the null
27
hypothesis is rejected. By the same token, a test is said to be statistically
insignificant if the value of the test statistic lies in the acceptance region. In this
situation, the null hypothesis is not rejected.
4. Specific Methodology
With the objective to analyze the impact of education-occupation mismatch
on wage, the researchers used the LFS to obtain the total number of college
graduates. This was then classified according to the First Stage of Tertiary/
Baccalaurate Education provided also by the NSO thus arriving with the 8
Major Classifications of the Field of Study taken by the college graduates:
61-Education
62- Humanities and Arts
63-Social Sciences, Business and Law
64- Science
65- Engineering, Manufacturing and Construction
66-Agriculture
67- Health and Welfare
68-Services
For detailed sub-classifications of the 8 Major Classifications of the Field of

Study taken by the college graduates, see Appendix 1.
The researchers also obtained the Primary Occupations of the college

graduates for each of the 8 Major Classifications of the Field of Study.
28
Table 1: Primary Occupations
PRIMARY OCCUPATIONS
Officials of Government and Special-Interest Organizations
Corporate Executives and Specialized Managers
General Managers or Managing-Proprietors
Supervisors
Physicists Mathematical and Engineering Science Professionals
Life Science and Health Professionals
Teaching Professionals
Other Professionals
Physical Science and Engineering Associate Professionals
Life Science and Health Associate Professionals
Teaching Associate Professionals
Related Associate Professionals
Office Clerks
Customer Services Clerks
Personal and Protective Service Workers
Models Salespersons and Demonstrators
Farmers and Other Plant Growers
Animal Producers
Forestry and Related Workers
Fishermen
Hunters and Trappers
Mining Construction and Related Trade Workers
Metal Machinery and Related Trades Workers
Precision Handicraft Printing and Related Trades Workers
Other Craft and Related Trades Workers
Stationary Plant and Related Operators
Machine Operators and Assemblers
Drivers and Mobile Plant Operators
Sales and Services Elementary Occupations
Agricultural Forestry Fishery and Related Laborers
Laborers in Mining Construction Manufacturing and Transport
Armed Forces
Non-Gainful Occupations
Other Occupations Not Classifiable
29
The regression model to be estimated as presented here will be used for
each Major Classification of the Field of Study to determine the impact of
education-occupation mismatch on wage.
𝑳𝒏 𝑾𝒊 = 𝜶 + 𝜷𝑴𝑨𝑻𝑪𝑯 + 𝒖
Where:
𝐿𝑛 𝑊𝑖 = log 𝑜𝑓 𝑕𝑜𝑢𝑟𝑙𝑦 𝑤𝑎𝑔𝑒𝑠 /𝑒𝑎𝑟𝑛𝑖𝑛𝑔𝑠
MATCH= field of study and occupation category 1=matched 0=not matched
The dependent variable is the log of hourly wages and was obtained by
dividing the basic pay per day by normal working hours per day for the past
week. The reference period, being the „past week‟ or the past seven days
preceding the date of visit of the interviewer. The reason for taking the natural
logarithm of the wage variables is that they are highly skewed to the left. By
taking the log, the distribution becomes more symmetric (Neuman & Ziderman,
1991).
log 𝑜𝑓 𝑕𝑜𝑢𝑟𝑙𝑦 𝑤𝑎𝑔𝑒𝑠

= 𝑏𝑎𝑠𝑖𝑐 𝑝𝑎𝑦 𝑝𝑒𝑟 𝑑𝑎𝑦
/ 𝑛𝑜𝑟𝑚𝑎𝑙 𝑤𝑜𝑟𝑘𝑖𝑛𝑔 𝑕𝑜𝑢𝑟𝑠 𝑝𝑒𝑟 𝑑𝑎𝑦 𝑓𝑜𝑟 𝑡𝑕𝑒 𝑝𝑎𝑠𝑡 𝑤𝑒𝑒𝑘
The basic pay per day with the highest frequency was obtained from
each of the Primary Occupations under each Major Classification of the Field of
Study taken by the college graduates. This is to represent the basic pay per
day of the majority of the college graduates is receiving.
The normal working hours per day for the past week was obtained by
dividing the total number of hours worked during the past week by 8 hours
30
which is the normal working hours per day for an employee as specified in the
Philippine Labor Law (Art. 84, Labor Code). The total number of hours worked
during the past week with the highest frequency was obtained from each of the
Primary Occupations under each Major Classification of the Field of Study
taken by the college graduates.
𝑛𝑜𝑟𝑚𝑎𝑙 𝑤𝑜𝑟𝑘𝑖𝑛𝑔 𝑕𝑜𝑢𝑟𝑠 𝑝𝑒𝑟 𝑑𝑎𝑦 𝑓𝑜𝑟 𝑡𝑕𝑒 𝑝𝑎𝑠𝑡 𝑤𝑒𝑒𝑘

= 𝑡𝑜𝑡𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑕𝑜𝑢𝑟𝑠 𝑤𝑜𝑟𝑘𝑒𝑑 𝑑𝑢𝑟𝑖𝑛𝑔 𝑡𝑕𝑒 𝑝𝑎𝑠𝑡
/ 𝑛𝑜𝑟𝑚𝑎𝑙 𝑤𝑜𝑟𝑘𝑖𝑛𝑔 𝑕𝑜𝑢𝑟𝑠 𝑝𝑒𝑟 𝑑𝑎𝑦
The MATCH variable was obtained by doing cross tabulation of the

Primary Occupations and the Field of Study. The Primary Occupations under
each Major Classification of the Field of Study were classified as Matched=1
and Unmatched=0 which is based and patterned on the Philippine Standard
Occupational Classification 1992 (updated for the year 2002), see Appendix 2
and also on the First Stage of Tertiary/ Baccalaurate Education provided by the
NSO. A matched individual is the one having the primary occupation in line with
his/her field of study. An unmatched individual is the one having the primary
occupation not in line with his/ her field of study.
31
B. Beveridge Curve
1. Research Design
The researchers used correlational quantitative research design which

expresses the relationship between two variables numerically.
2. Sources of Data
In making an empirical analysis of the existence of the Beveridge Curve
in the Philippines, the researchers used the data of job vacancy rates obtained
from Bureau of Labor and Employment Statistics and the data of
unemployment rates was obtained from Philippine National Statistical
Coordination Board only for the years 1999 up to 2009.
3. Tools for Data Analysis

The researchers used the Statistical Package for the Social Sciences
(SPSS) 17.0 to analyze the vacancy-unemployment (v-u) ratio or the Beveridge
Curve.
4. Specific Methodology
The researchers obtained the correlation between the job vacancy rates
and unemployment rates to analyze the Beveridge Curve.
32
CHAPTER 4: RESULTS AND DISCUSSION
A. Education-Occupation Mismatch Impact on Wage

The statistical table (See Appendix 3) shows the total number of college
graduates per Field of Study and their corresponding Primary Occupations.
The following shows the percentage of each field of study‟s graduates to the
total number of college graduates:
Education (61)- 23.14 %

Humanities and Arts (62)- 1.33 %
Social Sciences, Business and Law (63) -32.35%
Science (64) -7.13%
Engineering, Manufacturing and Construction (65) - 22.69%
Agriculture (66) - 3.55%
Health and Welfare (67) - 1.33%
Services (68)- 8.47%
The highest proportion (32.35%) of the total number of college graduates

who had already found jobs/ occupations are coming from the Social Sciences,
Business and Law. The least proportion (1.33%) of the total number of college
graduates who had already found jobs/ occupations are coming from the
Humanities and Arts and Health and Welfare.
Regression Analysis
The researchers consider the log of hourly earnings as the dependent
variable as run against the MATCH variable as the independent variable. The
reason for taking the natural logarithm of the wage variables is that they are
highly skewed to the left. By taking the log, the distribution becomes more
33
symmetric (Neuman & Ziderman, 1991). By taking the natural logarithm of the
hourly wages shows that these become responsive to the changes in the
independent variable as shown in the two scatter diagram plots below. The
scatter plots presented here is only for Education field of study, since the
scatter plots for the other 7 fields of study also reflect the same pattern.
HOURLY WAGE/ EARNINGS

350
300
250
200 HOURLY
150 WAGE/
EARNINGS
100
50
0
0 10 20 30
LOG OF HOURLY EARNINGS

7
6
5
4
3 LOG OF HOURLY
EARNINGS
2
1
0
0 10 20 30
The results of the regression analysis (See Appendix 4) done for the 8 Major
Classifications of the Field of Study are explained on the next page.
34
1. Education
Under the Field of Education (61), the regression model is:

log of hourly wages= 4.482 + 0.965MATCH
This presents that on the average, for every unit increase in the MATCH
variable, the log of hourly earnings would be increasing by 0.965 peso.
Hypothesis Testing
H0: There is no significant increase in wage when the education and
occupation of a college graduate is matched.
H1: There is a significant increase in wage when the education and occupation
of a college graduate is matched.
α=0.05
Degrees of freedom= n-k-1
Degrees of freedom= 26- 1-1 = 24
T critical= 1.711
T-stat= 2.54224502580694
Reject H0. Accept H1.This implies that if a college graduate under this Field of
Study pursues with the occupation related to his/her field of study can earn
higher wages rather than having occupation not related to his/ her field of
study.
35
Under the Field of Social Sciences, Business and Law (63), the regression
model is:
Hypothesis Testing
α=0.05
T critical= 1.708
T-stat= 3.5304477880851
study.
36
3. Services
Under the Field of Services (68), the regression model is:

Hypothesis Testing
α=0.05
T critical= 1.714
T-stat= 2.25884756076435
study.
37
Based on the hypothesis testing conducted using t-test, the results show
that college graduates under these 3 fields of study (Education, Social
Sciences, Business and Law & Services) who pursue with the occupation
related to their field of study earn higher wages rather than having occupation
not related to their field of study. Thus, a college graduate earns higher wages
when his/her education and occupation is matched.
The result was supported by the study made by Patrick van Eijs and
Hans Heijke (1996) where it stated that efficiency and wages depend on the
matching of the demanded and attained abilities and therefore there will be a
higher wages if there will be a match on these two that causes a higher
productiveness. The study also concluded that through the matching of the
laborer‟s specific education skills with the occupational job characteristics
which yields efficiency, the human capital of the labor force is being utilized well
and this paves a way to achieve the right and deserved wage for the rendered
skill.
38
Under the Field of Humanities and Arts (62), the regression model is:
log of hourly wages= 4.437 - 0.010MATCH
variable, the log of hourly earnings would be decreasing by 0.010 peso.
Hypothesis Testing
α=0.05
Degrees of freedom= 19- 1-1 =17
T critical= 1.740
T-stat= -0.0486257070180501
Accept H0. Reject H1.This implies that if a college graduate under this Field of
lower wages rather than having occupation not related to his/ her field of study.
39
5. Science
Under the Field of Science (64), the regression model is:

Hypothesis Testing
α=0.05
T critical= 1.711
T-stat= 0.197020752163872
40
Under the Field of Engineering, Manufacturing and Construction (65), the

regression model is:
log of hourly wages= 4.851- 0.193MATCH
Hypothesis Testing
α=0.05
T critical= 1.708
T-stat= -0.703149759265872
41
7. Agriculture
Under the Field of Agriculture (66), the regression model is:

Hypothesis Testing
α=0.05

T critical= 1.703
T-stat= -0.913513876447283
42
Under the Field of Health and Welfare (67), the regression model is:
Hypothesis Testing
α=0.05
T critical= 1.746
T-stat= -1.57964542504616
43
Based on the hypothesis testing conducted using t-test, the results show
that college graduates under these 5 Fields of Study (Humanities and Art,
Science, Engineering, Manufacturing and Construction, Agriculture, Health and
Welfare) who pursue with the occupation related to their field of study
(matched), earn lower wages; while if they pursue with the occupation not
related to his/her field of study (unmatched), they earn higher wages.
B. Beveridge Curve
The data presented on Table 2 are used in analyzing the existence of the
Beveridge curve in the Philippines.
Job-
vacancy Unemployment
Year Rate Rate
2009 45.1 7.475
2008 52.5 7.4
2007 47.7 7.325
2006 47.9 8
2005 57.3 11.35
2004 62.3 11.825
2003 74.7 11.4
2002 70.9 11.4
2001 84.6 11.125
2000 68.5 11.175
1999 71.8 9.75
Table 2: Job-vacancy & unemployment rates
44
Correlation of Unemployment rates and Job-vacancy rates
Unemployment
Job-vacancy rate rate
Job-vacancy
rate 1
Unemployment
rate 0.768721874 1
Table 3. Correlation between job-vacancy and unemployment rates
The correlation coefficient between the job- vacancy rates and

unemployment rates resulted to a positive value of 0.768721874 which means
that there is a positive correlation. The two variables are associated; and they
move in the same direction in systematic way: as one gets larger, so does the
other; as one gets smaller, so does the other. The correlation coefficient of
0.768721874 is closer to 1 therefore implying strong positive correlation. This
positive correlation between the two variables greatly reflects that mismatch
occurs in the Philippine labor market as job vacancies increases, the
unemployment rate increases. This implies that as more jobs become available
for employment, more number of the labor force gets unemployed indicating
that there is no equilibrium in the labor market.
William Beveridge (1960) identified that the negative relationship

between unemployment and job vacancies depicts a balanced cycle in the
labor market implying that the job matching process in the labor market is
functioning well. Thus, the study‟s result showing a positive correlation implies
45
that the job matching process in the labor market is not functioning well
mismatch, so the researchers could say that mismatch exists in the Philippines.
The result of the study showing that mismatch occurs in the Philippines
is also supported by Zimmer (2012) wherein in his study in Belgium, problems
of mismatch is also evident as it has both a significant pool of unfilled job
vacancies and persistent unemployment implying that both unemployment rate
and job vacancy rates move in the same direction.
46
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS
I. CONCLUSION
A. Education-Occupation Mismatch
The research was able to analyze the impact of education- occupation

mismatch on wage. Through estimating the coefficient of the Match variable
(education-occupation) along with the log of hourly earnings/wage, the
researchers conclude that that college graduates under these 3 fields of study -
Education, Social Sciences, Business and Law & Services who pursue with the
occupation related to their field of study earn higher wages rather than having
occupation not related to their field of study (lower wages).
The result was supported by Van Eijs and Heijke (1996) where it stated
that the matching of the laborer‟s specific education skills with the occupational
job characteristics yields efficiency, the human capital of the labor force is
being utilized well and this paves a way to achieve the right and deserved wage
for the rendered skill. Samson (2003) also concluded in their study that
matched workers earn more than their unmatched counterparts verified by the
regression analysis.
The researchers also conclude that college graduates under these 5

Fields of Study (Humanities and Art, Science, Engineering, Manufacturing and
Construction, Agriculture, Health and Welfare) who pursue with the occupation
related to their field of study (matched), earn lower wages; while if they pursue
with the occupation not related to his/her field of study (unmatched), they could
higher wages.
47
These 5 out of 8 Major Classifications of the Fields of Study implied that
college graduates coming from these 5 Fields of study since they are earning
lower wages if they pursue with the occupation related to his/her field of study
(matched), tend to pursue occupations not related to his/her field of study
(unmatched) in order for them to earn higher wages. From, this point, the
researchers can conclude the existence of the education-occupation mismatch
in the Philippines.
Mismatch exists and causes underemployment, a situation in which a

worker is employed, but not in the desired capacity, whether in terms of
compensation, hours, or level of skills and experience (Lopez). Labor that falls
under the underemployment classification includes those workers that are
highly skilled but working in low paying jobs, workers that are highly skilled but
work in low skill jobs (Investopedia). Underemployment resulted from the
mismatch as can be seen in this research. In the 3 fields of study (Education,
Social Sciences, Business and Law & Services), underemployment can be
seen when unmatched individuals who are highly skilled work in a low paying
(lower wage) and low skill jobs. Moreover, in the 5 Fields of Study (Humanities
and Art, Science, Engineering, Manufacturing and Construction, Agriculture,
Health and Welfare), underemployment can be seen when unmatched
individuals who are highly skilled work but are working in low skill jobs.
B. Beveridge Curve
The researchers conclude that labor mismatch exists in the Philippine

labor market since the Beveridge Curve showed a positive correlation of
0.768721874 between the unemployment rate and job vacancy rate. This
presents the positive correlation between the two showing that mismatch exists
in the labor market (Beveridge. 1960). When the levels of unemployment and
48
job vacancies are both increasing, this illustrates that mismatch in the labor
market exists which is indicated by the qualification mismatch pertaining to the
mismatch between educational qualifications a worker possesses and the
prerequisites of the job (Shimer, 2005).
II. RECOMMENDATIONS
For the Government

Since one of the main problems that education-occupation mismatch
brings is underemployment, which reflects the occurrence of low quality jobs
that hinders the existence of good job opportunities, workers are not able to
earn appropriate income that compensates their rendered skill. Therefore this
problem should be seriously resolved, and to address such, the researchers
recommend the following:
 The researchers recommend the strengthening of the coordination of
the three training and education institutions – Department of Education
(DepEd), Commission on Higher Education (CHED) and Technical
Education and Skills Development Authority (TESDA) so as to have a
harmonized education and human resource development program.
 The researchers recommend the government to provide enough job

opportunities (labor demand) that would cater the unemployed
individuals (labor supply) through the enhancement of the labor supply
side through development of human resources, labor productivity, and
technological advancement as well as the improvement of the labor
demand side.
49
 The researchers would also like to recommend the government in order
to attain a balanced labor market (where Beveridge Curve presents as
inverse relationship between unemployment rate and job vacancy rate),
to find solutions on how to fill the job vacancies by focusing on
increasing the workers‟ competencies and work experiences.
 The researchers recommend the government to properly utilize the

Official Job Portal of the Philippines, Phil-JobNet, which is an
automated job and applicant matching system which aims to fast-track
jobseekers search for jobs and employers search for manpower.
 Based on the results of the study, the researchers would like to

recommend the government to help in the improvement of the
Education, Social Sciences, Business and Law & Services fields of
study as well as the occupations related to these fields of study so as to
attain matched individuals earning higher wages. The researchers
recommend that the Senior high school students to take these Fields of
study and pursue jobs related to these after college graduation for them
to attain higher wages at the same time applying the skills they have
learned in college.
 Based from the results of the study that if the college graduates from
Humanities and Art, Science, Engineering, Manufacturing and
Construction, Agriculture, Health and Welfare Fields of study are
matched, they will earn lower wages and/ or if they are unmatched, they
will earn higher wages. Thus, the researchers recommend that the
college graduates from these fields of study should be flexible in
adapting various job opportunities. In line with this, the researchers
would like to recommend the government to boost the job opportunities
50
by providing sufficient incentives, proper working conditions, and
satisfying salaries for these fields of study so that the college graduates
from these fields would be able to achieve better earnings and at the
same applying their learned skills making them educationally and
occupationally matched.
For Future Researchers

 The researchers recommend to the future researchers to deal with the
gathered primary individual data of the LFS so as to have a clearer and
precise study of the Mincer model (Human Capital Earning function). In
this regard, it is recommended to deal with the sex, age and work
experience of each individual so as to analyze the effect of these three
personal and work related variables on wage differentials.
51
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 Van Ejis, P. & Heijke, H. 1996. The Relation between the Wage, Job-
related Training and the Quality of the Match between Occupations
and Types of Education.University of Limburg, Maastricht
 Zimmer, H. 2012. Labour Market Mismatches. Economic Review

Journal. National Bank of Belgium.
Internet Articles:
 http://filipinonurses.org/index.php/2011/11/being-a-volunteer-nurse-or-a-
call-center-agent-2/
 http://www.edgewise.ph/2010/06/22/006-ask-edgewise/i-just-started-
this-job-but-i-received-a-better-offer-elsewhere/
 N/A. 2010. Job Mismatch Causes High Unemployment
Rate.Retrieved from http://affleap.com/job-mismatch-causes-high-
employment-rate/
 N/A. 2012. Pinoy Nurses Told Not To Expect US Hiring Till 2020.
Retrieved from http://mb.com.ph/node/357253/pinoy-nur
55
 http://www.investopedia.com/terms/u/underemployment.asp
 http://www.ble.dole.gov.ph/philjobnet.asp
 http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTEDUCATIO
N/0,,menuPK:28291~pagePK:149018~piPK:149093~theSitePK:282386,
00.html
 http://www.merriam-webster.com/dictionary/occupation
 http://www.thefreedictionary.com/
 http://www.investopedia.com/terms/b/base-pay.asp#ixzz2LOnGtWQL
56
APPENDIX 1: 8 Major Classifications of the Field of Study
FIRST STAGE OF TERTIARY/BACCALAUREATE EDUCATION (NOT
LEADING DIRECTLY TO AN ADVANCED RESEARCH QUALIFICATION)
EDUCATION
614 TEACHER TRAINING AND EDUCATION SCIENCES PROGRAMS

61401 Programs in General Teacher Training
61401 Bachelor of Elementary Education
61401 Bachelor of Secondary Education
61401 Bachelor of Science in Elementary and Secondary Education
61401 Bachelor of Science in Pedagogy
61404 Programs in Teacher Training with Specialization in Nonvocational Subjects
61404 Bachelor of Home Economics and Livelihood Education for Teachers
61404 Bachelor of Physical Education
61404 Bachelor of Sports Science
61404 Bachelor of Technology and Home Economics for Teachers
61404 Bachelor of Arts in Language Education for Teachers
61404 Bachelor of Science in Chemistry for Teachers
61404 Bachelor of Science in English Education as Secondary Language
61404 Bachelor of Science in Language Education for Teachers
61404 Bachelor of Science in Mathematics for Teachers
61404 Bachelor of Science in Music Education
61404 Bachelor of Science in Physical Education
61404 Bachelor of Science in Physics for Teachers
61404 Bachelor of Science in Religious Education
61408 Programs in Teacher Training for Teaching Practical or Vocational Subjects
61408 Bachelor of Science in Industrial Education
61408 Bachelor of Science in Technician Teacher Education

61412 Programs in Teacher Training for Teaching Preschool or Kindergarten
61412 Bachelor of Science in Early Childhood Education
61412 Bachelor of Science in Kindergarten/Preschool Education
61416 Programs in Teacher Training for Teachers in Adult Education
61422 Programs in Teacher Training for Teachers in Special Education
61422 Bachelor of Special Education
61472 Programs in Education Science in Support of Teaching
61472 Bachelor of Science in Guidance and Counseling
61499 Other Programs in Teacher Training and Education Sciences
61499 Bachelor of Science in Agricultural Education
61499 Bachelor of Science in Business/Commercial Education
61499 Bachelor of Science in Extension Education
61499 Bachelor of Science in Fishery Education
61499 Bachelor of Science in Nursing Education
61499 Bachelor of Science in Nutrition and Dietetics for Teachers
61499 Bachelor of Science in Secretarial Education
HUMANITIES AND ARTS
621 ARTS PROGRAMS

62101 General Programs in Art Studies
62101 Bachelor of Digital Arts
62101 Bachelor of Science in Fine Arts/Bachelor of Fine Arts
62104 Programs in Drawing and Painting
62108 Programs in Sculpturing
62122 Programs in Music
62122 Bachelor of Music Liturgy
62122 Bachelor of Science in Music/Bachelor of Music
62132 Programs in Drama
62132 Bachelor of Performing Arts
62132 Bachelor of Arts in Speech and Drama
62132 Bachelor of Arts in Speech and Theater Arts
62132 Bachelor of Arts in Theater Arts
62132 Bachelor of Science in Speech and Drama
62152 Programs in Interior Design
62152 Bachelor of Science in Interior Design
62199 Other Programs in Arts
62199 Bachelor of Arts in Film and Audio-Visual Communication
622 HUMANITIES PROGRAMS

62201 General Programs in Humanities
57
62201 Bachelor of Arts in Humanities
62211 Programs in the Current or Vernacular Language and Its Literature
62211 Bachelor of Arts in English
62211 Bachelor of Arts in English Literature
62211 Bachelor of Arts in Filipino
62211 Bachelor of Arts in Philippine Literature
62215 Programs in Other Living Languages and Their Literature
62215 Bachelor of Arts in European Languages
62221 Programs in "Dead" Languages and Their Literature
62231 Programs in Linguistics
62231 Bachelor of Arts in Linguistics
62241 Programs in Comparative Literature
62241 Bachelor of Arts in Comparative Literature
62241 Bachelor of Arts in Literature
62251 Programs in History
62251 Bachelor of Arts in Development Studies
62251 Bachelor of Arts in History
62261 Programs in Archeology
62271 Programs in Philosophy
62271 Bachelor of Arts in Classical/Philosophy/Bachelor of Classical/Philosophy
62271 Bachelor of Arts in Philosophy/Bachelor of Philosophy
62281 Programs in Religion and Theology
62281 Bachelor of Evangelical Ministry
62281 Bachelor of Arts in Religion
62281 Bachelor of Arts in Religious Studies
62281 Bachelor of Arts in Divinity/Bachelor of Divinity
62281 Bachelor of Arts in Theology/Bachelor of Theology
62299 Other Programs in Humanities
SOCIAL SCIENCES, BUSINESS, AND LAW
631 SOCIAL AND BEHAVIORAL SCIENCE PROGRAMS

63101 General Programs in Social and Behavioral Sciences
63101 Bachelor of Arts in Behavioral Science
63101 Bachelor of Arts in Social Science

63101 Bachelor of Arts in Human Behavior Technology/Bachelor of Human Behavior
Technology
63101 Bachelor of Science in Behavioral Science
63101 Bachelor of Science in Human Behavior Technology
63112 Programs in Economics
63112 Bachelor of Arts in Economics
63112 Bachelor of Arts in Applied Economics/Bachelor of Applied Economics
63112 Bachelor of Science in Applied Economics
63112 Bachelor of Science in Business Economics
63112 Bachelor of Science in Economics
63122 Programs in Political Science
63122 Bachelor of Arts in Political Science/Bachelor in Political Science
63122 Bachelor of Science in Foreign Service
63122 Bachelor of Science in International Relations
63122 Bachelor of Science in Political Economy
63132 Programs in Sociology
63132 Bachelor of Arts in Applied Sociology
63132 Bachelor of Arts in Sociology
63132 Bachelor of Science in Sociology
63133 Programs in Demography
63133 Bachelor of Science in Demography
63142 Programs in Anthropology
63142 Bachelor of Arts in Anthropology
63152 Programs in Psychology
63152 Bachelor of Arts in Applied Psychology
63152 Bachelor of Science in Clinical Psychology
63152 Bachelor of Science in Industrial and Organizational Psychology
63152 Bachelor of Science in Psychology
63162 Programs in Geography
63162 Bachelor of Science in Geography
63172 Programs in Studies of Regional Cultures
63172 Bachelor of Arts in Arabic/Islamic Studies
63172 Bachelor of Arts in International Studies
63172 Bachelor of Arts in Philippine Arts
63172 Bachelor of Arts in Philippine Studies
63199 Other Programs in Social and Behavioral Sciences
58
632 JOURNALISM AND INFORMATION PROGRAMS
63201 Programs in General Communication Arts
63201 Bachelor of Arts in Communication
63201 Bachelor of Arts in Media Studies
63202 Programs in Journalism
63202 Bachelor of Arts in Business Journalism/Bachelor in Business Journalism
63202 Bachelor of Arts in Journalism/Bachelor in Journalism
63202 Bachelor of Science in Business Journalism
63202 Bachelor of Science in Journalism
63204 Programs in Radio and Television Broadcasting
63204 Bachelor of Arts in Broadcast Communication
63204 Bachelor of Science in Broadcast Communication
63207 Programs in Public Relations
63207 Bachelor of Arts in Public Relations
63222 Programs in Library Science
63222 Bachelor of Arts in Library and Information Science/Bachelor of Library
and Information Science
63222 Bachelor of Arts in Library Science/Bachelor of Library Science
63229 Other Programs in Journalism and Information
63229 Bachelor of Arts in Communication Arts/Mass Communication
63229 Bachelor of Arts in Communication Research
63229 Bachelor of Arts in Organizational Communication
63229 Bachelor of Science in Mass Communication
634 BUSINESS AND ADMINISTRATION PROGRAMS

63401 General Programs in Business Administration/Commerce
63401 Bachelor of Arts in Business Administration/Bachelor in Business Administration
63401 Bachelor of Arts in Entrepreneurial Management/Bachelor in Entrepreneurial
Management
63401 Bachelor of Arts in Business Management/Bachelor of Business Management
63401 Bachelor of Arts in Management and Social Work /Bachelor of Management
and Social Work
63401 Bachelor of Science in Administration
63401 Bachelor of Science in Business Administration
63401 Bachelor of Science in Business Management
63401 Bachelor of Science in Commerce
63401 Bachelor of Science in Management
63404 Programs in Secretarial
63404 Bachelor of Science in Airline Secretarial/Administration

63404 Bachelor of Science in Computer Secretarial
63404 Bachelor of Science in Office Administration/Technology
63404 Bachelor of Science in Secretarial Administration
63432 Programs in Business Administration with Specialization in Accountancy
63432 Bachelor of Science in Accountancy
63432 Bachelor of Science in Business Administration and Accountancy
63432 Bachelor of Science in Computer Accounting and Management
63432 Bachelor of Science in Management and Accountancy
63434 Programs in Business Administration with Specialization in Marketing
63434 Bachelor of Arts in Advertising/Bachelor of Advertising
63434 Bachelor of Arts in Advertising and Public Relations/Bachelor of Advertising
and Public Relations
63434 Bachelor of Science in Marketing
63436 Programs in Business Administration with Specialization in Finance and Investment
63436 Bachelor of Science in Finance
63436 Bachelor of Science in Real Estate
63436 Bachelor of Science in Banking and Finance/Bachelor in Banking and Finance
63439 Programs in Business Administration with Other Specialization
63439 Bachelor of Arts in Legal Management
63439 Bachelor of Arts in Business Engineering/Bachelor in Business Engineering
63439 Bachelor of Arts in Agricultural Entrepreneurship/Bachelor of Agricultural
Enterpreneurship
63439 Bachelor of Arts in Business Distributive Arts/Bachelor of Business Distributive Arts
63439 Bachelor of Arts in Computer Management/Bachelor of Computer Management
63439 Bachelor of Arts in Industrial Management/Bachelor of Industrial Management
63439 Bachelor of Arts in Transportation Management/Bachelor of Transportation
Management
63439 Bachelor of Science in Agri-Business Management
63439 Bachelor of Science in Business Enterpreneurship
63439 Bachelor of Science in Business Technology
63439 Bachelor of Science in Economics and Cooperatives
63439 Bachelor of Science in Fishery Business Management
63439 Bachelor of Science in Home Arts and Enterpreneurship
63439 Bachelor of Science in Industrial Management
59
63452 Programs in Public Administration
63452 Bachelor of Arts in Public Administration/Bachelor of Public Administration
63452 Bachelor of Science in Public Administration
63462 Programs in Institutional Administration/Management

63462 Bachelor of Arts in Port Administration/Bachelor of Port Administration
63462 Bachelor of Science in Airline Business Administration/Management
63462 Bachelor of Science in Airline Management
63462 Bachelor of Science in Airline Management and Accountancy
63462 Bachelor of Science in Customs Administration
63462 Bachelor of Science in Food Service Administration
63462 Bachelor of Science in Hospital Administration
63462 Bachelor of Science in Postal Management
63462 Bachelor of Science in Shipping Management
63499 Other Programs in Business Administration/Management
63499 Bachelor of Arts in Legal and Indigenous Studies
63499 Bachelor of Arts in Cooperatives/Bachelor of Cooperatives
63499 Bachelor of Science in Cooperative Management
63499 Bachelor of Science in Maritime Management
63499 Bachelor of Science in Recreation Management
63499 Bachelor of Science in Supply Management
638 LAW PROGRAMS

63801 General Programs in Law
63801 Bachelor of Laws (LL.B.)/Juris Doctor (J.D.)
63801 Bachelor of Science in Jurisprudence
SCIENCE
642 LIFE SCIENCES PROGRAMS

64202 Programs in Biological Science
64202 Bachelor of Science in Applied Biology
64202 Bachelor of Science in Biochemistry
64202 Bachelor of Science in Biological Science
64202 Bachelor of Science in Biology
64202 Bachelor of Science in Botany
64202 Bachelor of Science in Entomology
64202 Bachelor of Science in Human Biology
64202 Bachelor of Science in Marine Biology
64202 Bachelor of Science in Microbiology
64202 Bachelor of Science in Molecular Biology and Biotechnology
64202 Bachelor of Science in Pharmacology
64202 Bachelor of Science in Physiology

64202 Bachelor of Science in Plant Science
64202 Bachelor of Science in Zoology
64209 Other Programs in Life Sciences
64209 Bachelor of Arts in Applied Science/Bachelor of Applied Science
64209 Bachelor of Science in General Science
64209 Bachelor of Science in Natural Science
644 PHYSICAL SCIENCES PROGRAMS

64412 Programs in Chemistry
64412 Bachelor of Science in Chemical Research
64412 Bachelor of Science in Chemical Technology
64412 Bachelor of Science in Chemistry
64412 Bachelor of Science in Industrial Chemistry
64422 Programs in Geological Science
64422 Bachelor of Science in Geology
64422 Bachelor of Science in Volcanology
64432 Programs in Physics
64432 Bachelor of Science in Applied Physics
64432 Bachelor of Science in Metallurgy
64432 Bachelor of Science in Physics
64432 Bachelor of Science in Physics-Mathematics
64442 Programs in Astronomy
64442 Bachelor of Science in Astronomy
64452 Programs in Meteorology
64452 Bachelor of Science in Meteorology
64462 Programs in Oceanography
64462 Bachelor of Science in Marine Science
64462 Bachelor of Science in Oceanography
646 MATHEMATICS AND STATISTICS PROGRAMS
60
64601 General Programs in Mathematics
64601 Bachelor of Science in Mathematics
64611 Programs in Statistics
64611 Bachelor of Science in Applied Statistics
64611 Bachelor of Science in Experimental Statistics
64611 Bachelor of Science in Statistics
64621 Programs in Actuarial Science
64621 Bachelor of Science in Actuarial Science

64699 Other Programs in Mathematics
64699 Bachelor of Science in Applied Mathematics
648 COMPUTING/INFORMATION TECHNOLOGY PROGRAMS

64841 Programs in Computer Science and Information Technology
64841 Bachelor of Arts in Information Technology/Bachelor in Information Technology
64841 Bachelor of Science in Business Computer Applications
64841 Bachelor of Science in Computer Applications
64841 Bachelor of Science in Computer Data Processing Management
64841 Bachelor of Science in Computer Science
64841 Bachelor of Science in Computer Studies
64841 Bachelor of Science in Information and Computer Science
64841 Bachelor of Science in Information System/Management
64841 Bachelor of Science in Information Technology
64841 Bachelor of Science in Management Information System
64841 Bachelor of Science in Software Technology
64844 Programs in Electronic Data Processing
64844 Bachelor of Science in Computer Data Processing and Information Management
64844 Bachelor of Science in Data Processing
ENGINEERING, MANUFACTURING, AND CONSTRUCTION
652 ENGINEERING AND ENGINEERING TRADES PROGRAMS

65204 Programs in Aeronautical Engineering
65204 Bachelor of Science in Aeronautical Engineering
65204 Bachelor of Science in Aerospace Engineering
65204 Bachelor of Science in Air Transportation
65204 Bachelor of Science in Aircraft Maintenance Engineering
65204 Bachelor of Science in Aircraft Maintenance Technology
65204 Bachelor of Science in Aircraft Technology
65204 Bachelor of Science in Aviation
65204 Bachelor of Science in Aviation Electronics Engineering
65204 Bachelor of Science in Avionics Engineering
65204 Bachelor of Science in Avionics Technology
65204 Bachelor of Science in Electrical Engineering Avionics
65204 Bachelor of Science in Flying Technology
65212 Programs in Chemical Engineering
65212 Bachelor of Science in Ceramics Engineering
65212 Bachelor of Science in Chemical Engineering

65212 Bachelor of Science in Chemical Engineering Technology
65212 Bachelor of Science in Textile Engineering
65216 Programs in Civil Engineering
65216 Bachelor of Science in Civil Engineering
65216 Bachelor of Science in Construction Technology
65218 Programs in Geodetic Engineering
65218 Bachelor of Science in Geodetic Engineering
65222 Programs in Electrical, Electronics and Computer Engineering
65222 Bachelor of Science in Communications Engineering
65222 Bachelor of Science in Computer Engineering
65222 Bachelor of Science in Computer Technology
65222 Bachelor of Science in Electrical Engineering
65222 Bachelor of Science in Electrical Engineering Technology
65222 Bachelor of Science in Electrical Technology
65222 Bachelor of Science in Electronics and Communications Engineering
65222 Bachelor of Science in Electronics Engineering
65222 Bachelor of Science in Electronics Technology
65222 Bachelor of Science in Instrumentation and Control Engineering
65226 Programs in Industrial Engineering
65226 Bachelor of Science in Industrial and Management Engineering
65226 Bachelor of Science in Industrial Design
65226 Bachelor of Science in Industrial Engineering
65226 Bachelor of Science in Industrial Technology
65226 Bachelor of Science in Management Engineering
65226 Bachelor of Science in Manufacturing Engineering
61
65232 Programs in Metallurgical Engineering
65232 Bachelor of Science in Metallurgical Engineering
65236 Programs in Mining Engineering
65236 Bachelor of Science in Mining Engineering
65242 Programs in Mechanical Engineering
65242 Bachelor of Science in Automotive Technology
65242 Bachelor of Science in Geothermal Engineering
65242 Bachelor of Science in Mechanical Engineering
65242 Bachelor of Science in Mechanical Technology
65250 Programs in Sanitary Engineering
65250 Bachelor of Science in Environmental and Sanitary Engineering
65250 Bachelor of Science in Environmental Engineering
65250 Bachelor of Science in Sanitary Engineering

65253 Programs in Agricultural Engineering
65253 Bachelor of Science in Agricultural Engineering
65253 Bachelor of Science in Aquatic Resource Engineering
65263 Programs in Forestry Engineering
65263 Bachelor of Science in Forest Products Engineering
65281 Programs in Marine Engineering
65281 Bachelor of Science in Marine Engineering
65281 Bachelor of Science in Naval Architecture and Marine Engineering
65299 Other Programs in Engineering
65299 Bachelor of Arts in Technology/Bachelor of Technology
65299 Bachelor of Science in Electronics and Computer Technology
65299 Bachelor of Science in Food Engineering
65299 Bachelor of Science in Petroleum Engineering
654 MANUFACTURING AND PROCESSING PROGRAMS

65476 Programs in Clothing and Related Trades
65476 Bachelor of Science in Clothing Technology
65476 Bachelor of Science in Garment/Textile Technology
658 ARCHITECTURE AND BUILDING PROGRAMS

65801 General Programs in Architecture and Town Planning
65801 Bachelor of Science in Architecture
65812 Programs in Landscape Architecture
65812 Bachelor of Science in Landscape Architecture
65822 Programs in Town Planning
65822 Bachelor of Science in Town and Country Planning
AGRICULTURE
662 AGRICULTURE, FORESTRY, AND FISHERY PROGRAMS

66201 General Programs in Agriculture
66201 Bachelor of Arts in Agricultural Technology/Bachelor of Agricultural Technology
Bachelor of Science in Agriculture
66203 Programs in Animal Husbandry
66203 Bachelor of Science in Animal Husbandry
66203 Bachelor of Science in Animal Science
66203 Bachelor of Science in Animal Technology
66206 Programs in Horticulture
66206 Bachelor of Arts in Horticulture Management/Bachelor of Technology in Horticulture

Management
66206 Bachelor of Science in Horticulture
66208 Programs in Agronomy
66208 Bachelor of Science in Agronomy
66212 Programs in Agricultural Economics
66212 Bachelor of Science in Agricultural Economics
66222 Programs in Food Science and Technology
66222 Bachelor of Science in Food Technology
66226 Programs in Soil and Water Sciences
66249 Other Programs in Agriculture
66249 Bachelor of Science in Agricultural Administration
66249 Bachelor of Science in Agricultural Chemistry
66249 Bachelor of Science in Agricultural Development
66249 Bachelor of Science in Agricultural Management
66249 Bachelor of Science in Rice Technology
66249 Bachelor of Science in Sugar Technology
66262 Programs in Forestry
66262 Bachelor of Arts in Agro-Forestry Technology/Bachelor in Agro-Forestry Technology
66262 Bachelor of Science in Agro-Forestry
66262 Bachelor of Science in Forestry
62
66272 Programs in Fishery Science and Technology
66272 Bachelor of Science in Aquaculture
66272 Bachelor of Science in Aquatic Resource Management and Technology
66272 Bachelor of Science in Fisheries
66272 Bachelor of Science in Fishing Technology
66272 Bachelor of Science in Inland Fisheries
664 VETERINARY PROGRAMS

66432 Programs in Veterinary Medicine
66432 Bachelor of Science in Veterinary Technology
HEALTH AND WELFARE
672 HEALTH PROGRAMS

67202 Programs in Hygiene
67202 Bachelor of Science in Community/Public Health
67202 Bachelor of Science in Sanitary Science
67206 Programs in Medicine

67206 Bachelor of Arts in Basic Medical Sciences
67206 Doctor of Medicine
67208 Programs in Rehabilitation Medicine
67208 Bachelor of Science in Occupational Therapy
67208 Bachelor of Science in Physical Therapy
67208 Bachelor of Science in Respiratory Therapy
67208 Bachelor of Science in Speech Pathology
67212 Programs in Nursing
67212 Bachelor of Science in Nursing
67217 Programs in Medical X-Ray Techniques
67217 Bachelor of Science in Radiologic Technology
67230 Programs in Medical Technology
67230 Bachelor of Science in Medical Technology
67242 Programs in Dentistry
67242 Doctor of Dental Medicine
67252 Programs in Pharmacy
67252 Bachelor of Science in Industrial Pharmacy
67252 Bachelor of Science in Pharmaceutical Chemistry
67252 Bachelor of Science in Pharmacy
67262 Programs in Optometry
67262 Doctor of Optometry
67272 Programs in Nutrition and Dietetics
67272 Bachelor of Science in Nutrition and Dietetics
67299 Other Programs in Medical Diagnostic and Treatment
67299 Bachelor of Science in Paramedics
67299 Bachelor of Science in Rural Medicine
676 SOCIAL SERVICES PROGRAMS

67632 Programs in Social Welfare
67632 Bachelor of Arts in Social Services/Social Work
67632 Bachelor of Science in Social Services/Social Work
67652 Programs in Community Development
67652 Bachelor of Science in Community Development
67652 Bachelor of Science in Development of Multi-Cultural Communities
67652 Bachelor of Science in Rural Development Management
SERVICES
681 PERSONAL SERVICES PROGRAMS

68101 General Programs in Home Economics (Domestic Science)
68101 Bachelor of Science in Family and Child Development
68101 Bachelor of Science in Home Economics
68101 Bachelor of Science in Human Ecology
68132 Programs in Home Economics with Emphasis on Household Arts
68134 Other Programs in Home Economics
68134 Bachelor of Science in Home Technology
68172 Programs in Hotel and Restaurant Trades
68172 Bachelor of Science in Hotel and Restaurant Management
68182 Programs in Tourism
68182 Bachelor of Arts in Tourism
68182 Bachelor of Science in Tourism
68182 Bachelor of Science in Tourism and Hotel and Restaurant Management
68182 Bachelor of Science in Tourism and Travel Management
63
684 TRANSPORT SERVICES PROGRAMS

68404 Programs in Nautical Science
68404 Bachelor of Science in Marine Transportation
68404 Bachelor of Science in Nautical Science
685 ENVIRONMENTAL PROTECTION PROGRAMS

68552 Programs in Environmental Studies
68552 Bachelor of Arts in Technology in Environmental Management/Bachelor
of Technology in Environmental Management
68552 Bachelor of Science in Coastal Resource Management
68552 Bachelor of Science in Ecology
68552 Bachelor of Science in Environmental Development/Environmental
Hygiene/Environmental Science
68552 Bachelor of Science in Environmental Management
68552 Bachelor of Science in Environmental Planning
686 SECURITY SERVICES PROGRAMS

68613 Programs in Criminal Justice Education
68613 Bachelor of Science in Criminal Justice/Criminology
68613 Bachelor of Science in Forensic Science
68613 Bachelor of Science in Industrial Security Management
68613 Bachelor of Science in Police/Law Enforcement Administration

68617 Programs in Military
68619 Other Programs in Civil Security
68619 Bachelor of Arts in Peace and Security Studies
68619 Bachelor of Science in Peace and Security Studies
64
APPENDIX 2: Field of Study and Primary Occupations used for Matching

The following shows the Primary Occupations under each Major Classification
of the Field of Study which are considered to be matched which is based and
patterned on the Philippine Standard Occupational Classification 1992.
Education (61) Supervisors, Teaching Professionals, and

Teaching Associate Professionals.
Humanities and Arts (62) Teaching Professionals, Other Professionals,
Physical Science and Engineering Associate
Professionals, Related Associate
Professionals, Models, Salespersons and
Demonstrators, Precision, Handicraft, Printing
and Related Trades Workers.
Social Sciences, Business and Law Officials of Government and Special-Interest
(63) Organizations, Corporate Executives and
Specialized Managers, General Managers or
Managing-Proprietors, Supervisors, Teaching
Professionals, Other Professionals, Related
Associate Professionals, Office Clerks,
Customer Services Clerks, Models,
Salespersons and Demonstrators, Other Craft
and Related Trades Workers, Sales and
Services.
Science (64) Physicists, Life Science and Health
Professionals, Teaching Professionals,
Physical Science and Engineering Associate
Professionals, Life Science and Health
Associate Professionals.
Engineering, Manufacturing and Corporate Executives and Specialized
65
Construction (65) Managers, General Managers or Managing-
Proprietors, Physicists, Mathematical and
Engineering, Physical Science and
Engineering Associate, Mining, Construction
and Related Trade Workers, Metal, Machinery
and Related Trades Workers, Stationary Plant
and Related Operators, Machine Operators
and Assemblers, Drivers and Mobile Plant
Operators, Laborers.
Agriculture (66) General Managers or Managing-Proprietors,
Supervisors, Farmers and Other Plant
Growers, Animal Producers, Forestry and
Related Workers, Fishermen, Hunters and
Trappers, Metal, Machinery and Related
Trades Workers, Agricultural, Forestry,
Fishery and Related Laborers.
Health and Welfare (67) Life Science and Health Professionals, Life
Science and Health Associate Professionals,
Related Associate Professionals, Personal
and Protective Service Workers.
Services (68) Officials of Government and Special-Interest
Organizations, Supervisors, Related
Associate Professionals, Customer Services
Clerks, Personal and Protective Service
Workers, Armed Forces.
66
APPENDIX 3: Total Number of College Graduates per Field of Study
and their corresponding Primary Occupations
67
APPENDIX 4: Regression Results for the 8 Fields of Study
1. Education
a
Coefficients
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 4.482 .129 34.765 .000
MATCH .965 .380 .461 2.542 .018
a. Dependent Variable: LOG OF HOURLY EARNINGS

a
Coefficients
Standardized
1 (Constant) 4.270 .125 34.143 .000
MATCH .662 .188 .577 3.530 .002
3. Services
a
Coefficients
Standardized
1 (Constant) 4.282 .142 30.246 .000
MATCH .653 .289 .426 2.259 .034
68

a
Coefficients
Standardized
1 (Constant) 4.437 .119 37.201 .000
MATCH -.010 .212 -.012 -.049 .962
5. Science
a
Coefficients
Standardized
1 (Constant) 4.479 .114 39.402 .000
MATCH .051 .259 .040 .197 .845

a
Coefficients
Standardized
1 (Constant) 4.851 .167 28.988 .000
MATCH -.193 .275 -.139 -.703 .488
69
7. Agriculture
a
Coefficients
Standardized
1 (Constant) 4.447 .148 29.997 .000
MATCH -.243 .266 -.173 -.914 .369

a
Coefficients
Standardized
1 (Constant) 4.694 .140 33.625 .000
MATCH -.468 .296 -.367 -1.580 .134
70
APPENDIX 5: DATA FOR EDUCATION (61)
TOTAL
NO. OF
HOURS NORMAL
WORKED WORKING
DURING HOURS
THE WORKING DURING HOURLY LOG OF
BASIC PAST HOURS THE PAST WAGE/ HOURLY
OCCUPATION PAY WEEK PER DAY WEEK EARNINGS EARNINGS M
Officials of Government and Special-Interest Organizations 1499 48 8 6 249.833333 5.520794
Corporate Executives and Specialized Managers 1499 48 8 6 249.833333 5.520794
Supervisors 1499 48 8 6 249.833333 5.520794
Physicists Mathematical and Engineering Science Professionals 699 48 8 6 116.5 4.757891
Life Science and Health Professionals 1499 48 8 6 249.833333 5.520794
Teaching Professionals 899 48 8 6 149.833333 5.009524
Other Professionals 1499 48 8 6 249.833333 5.520794
Physical Science and Engineering Associate Professionals 399 48 8 6 66.5 4.197202
Life Science and Health Associate Professionals 599 48 8 6 99.8333333 4.603502
Teaching Associate Professionals 1999 48 8 6 333.166667 5.808643
Related Associate Professionals 599 48 8 6 99.8333333 4.603502
Office Clerks 399 48 8 6 66.5 4.197202
Customer Services Clerks 299 48 8 6 49.8333333 3.908684
Personal and Protective Service Workers 1499 48 8 6 249.833333 5.520794
Models Salespersons and Demonstrators 299 48 8 6 49.8333333 3.908684
Mining Construction and Related Trade Workers 299 39 8 4.875 61.3333333 4.116323
Metal Machinery and Related Trades Workers 199 48 8 6 33.1666667 3.501545
Precision Handicraft Printing and Related Trades Workers 299 39 8 4.875 61.3333333 4.116323
Other Craft and Related Trades Workers 399 48 8 6 66.5 4.197202
Stationary Plant and Related Operators 399 48 8 6 66.5 4.197202
Machine Operators and Assemblers 399 48 8 6 66.5 4.197202
Drivers and Mobile Plant Operators 499 48 8 6 83.1666667 4.420847
Sales and Services Elementary Occupations 199 19 8 2.375 83.7894737 4.428307
Agricultural Forestry Fishery and Related Laborers 199 48 8 6 33.1666667 3.501545
Laborers in Mining Construction Manufacturing and Transport 399 48 8 6 66.5 4.197202
Armed Forces 499 48 8 6 83.1666667 4.420847
71
APPENDIX 6: DATA FOR HUMANITIES AND ARTS (62)
TOTAL
NO. OF
HOURS NORMAL
WORKED WORKING
DURING HOURS
Corporate Executives and Specialized Managers 599 58 8 7.25 82.62069 4.41426
Supervisors 1499 48 8 6 249.8333 5.520794
Other Professionals 699 58 8 7.25 96.41379 4.568649
Related Associate Professionals 299 19 8 2.375 125.8947 4.835446
Office Clerks 299 48 8 6 49.83333 3.908684
Personal and Protective Service Workers 399 58 8 7.25 55.03448 4.00796
Mining Construction and Related Trade Workers 499 39 8 4.875 102.359 4.628486
Precision Handicraft Printing and Related Trades Workers 299 39 8 4.875 61.33333 4.116323
Sales and Services Elementary Occupations 199 29 8 3.625 54.89655 4.005451
Armed Forces 699 58 8 7.25 96.41379 4.568649
72
APPENDIX 7: DATA FOR SOCIAL SCIENCES, BUSINESS & LAW (63)
TOTAL
NO. OF
HOURS NORMAL
WORKED WORKING
DURING HOURS
OCCUPATION PAY WEEK PER DAY WEEK EARNINGS EARNINGS MA
General Managers or Managing-Proprietors 1499 58 8 7.25 206.7586207 5.331552
Supervisors 1499 48 8 6 249.8333333 5.520794
Teaching Associate Professionals 199 19 8 2.375 83.78947368 4.4283074
Office Clerks 399 48 8 6 66.5 4.1972019
Mining Construction and Related Trade Workers 499 48 8 6 83.16666667 4.4208466
Precision Handicraft Printing and Related Trades Workers 599 48 8 6 99.83333333 4.6035021
Other Craft and Related Trades Workers 399 29 8 3.625 110.0689655 4.7011071
Sales and Services Elementary Occupations 299 48 8 6 49.83333333 3.9086841
Armed Forces 699 48 8 6 116.5 4.7578913
73
APPENDIX 8: DATA FOR SCIENCE (64)
TOTAL
NO. OF
HOURS NORMAL
WORKED WORKING
DURING HOURS
Supervisors 399 48 8 6 66.5 4.1972019
Office Clerks 499 48 8 6 83.1667 4.4208466
Agricultural Forestry Fishery and Related Laborers 199 19 8 2.375 83.7895 4.4283074
Armed Forces 399 48 8 6 66.5 4.1972019
Other Occupations Not Classifiable 599 48 8 6 99.8333 4.6035021
74
APPENDIX 9: DATA FOR Engineering, Manufacturing and

Construction (65)
TOTAL
NO. OF
HOURS NORMAL
WORKED WORKING
DURING HOURS
Officials of Government and Special-Interest Organizations 1499 19 8 2.375 631.1579 6.4475561
General Managers or Managing-Proprietors 1499 48 8 6 249.8333 5.520794
Supervisors 1499 48 8 6 249.8333 5.520794
Teaching Associate Professionals 399 29 8 3.625 110.069 4.7011071
Office Clerks 399 48 8 6 66.5 4.1972019
Armed Forces 1499 48 8 6 249.8333 5.520794
75
APPENDIX 10: DATA FOR AGRICULTURE (66)
TOTAL
NO. OF
HOURS NORMAL
WORKED WORKING
DURING HOURS
General Managers or Managing-Proprietors 1499 58 8 7.25 206.758621 5.331552
Supervisors 1499 48 8 6 249.833333 5.520794
Office Clerks 299 48 8 6 49.8333333 3.908684
Farmers and Other Plant Growers 199 19 8 2.375 83.7894737 4.428307
Animal Producers 199 48 8 6 33.1666667 3.501545
Forestry and Related Workers 199 39 8 4.875 40.8205128 3.709185
Fishermen 199 39 8 4.875 40.8205128 3.709185
Hunters and Trappers 199 39 8 4.875 40.8205128 3.709185
Drivers and Mobile Plant Operators 399 39 8 4.875 81.8461538 4.404841
Armed Forces 1499 48 8 6 249.833333 5.520794
Other Occupations Not Classifiable 199 48 8 6 33.1666667 3.501545
76
APPENDIX 11: DATA FOR HEALTH & WELFARE (67)
TOTAL
NO. OF
HOURS NORMAL
WORKED WORKING
DURING HOURS
OCCUPATION PAY WEEK PER DAY WEEK EARNINGS EARNINGS MAT
Supervisors 1499 48 8 6 249.83333 5.52079403
Office Clerks 499 48 8 6 83.166667 4.42084663
Metal Machinery and Related Trades Workers 599 29 8 3.625 165.24138 5.10740731
Drivers and Mobile Plant Operators 399 39 8 4.875 81.846154 4.40484131
77
APPENDIX 12: DATA FOR SERVICES (68)
TOTAL
NO. OF
HOURS NORMAL
WORKED WORKING
DURING HOURS
Officials of Government and Special-Interest Organizations 1499 19 8 2.375 631.16 6.44756
Supervisors 499 48 8 6 83.167 4.42085
Office Clerks 499 48 8 6 83.167 4.42085
Machine Operators and Assemblers 399 58 8 7.25 55.034 4.00796
Armed Forces 799 48 8 6 133.17 4.8916
78

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UNIVERSITY OF SANTO TOMAS

Labor Mismatch in the Philippines: Analysis of the Impact of

In Partial Fulfillment of the

This thesis entitled: Labor Mismatch in the Philippines: Analysis of

Approved by the Committee on Oral Examination with the grade

Ms. Rosario Abragan, Administrative Assistant II- Databank and Information

Kuya RJ Angeles, Vice President and COO at Romar Commodities, Inc.,

Title: Labor Mismatch in the Philippines: Analysis of the Impact of Education-

School: University of Santo Tomas

Degree: Bachelor of Arts

Year: Fourth Year

Adviser: Dr. Emmanuel Lopez

In analyzing the education-occupation mismatch on wage, the

I. Background of the Study

It is evident that the distribution of income in an economy is related to the

Mismatch exists in the labor market in the form of educational or skills

There are different kinds of mismatches. Spatial mismatch refers to the

The objectives of the research are:

III. Statement of the Problem

The research is intended to answer the following questions:

1. Does labor mismatch exist in the Philippines? To what extent?

The analysis of educational-occupational mismatch and the existence of

a. The Government- Mismatch worsens the employment circulation of

 The Department of Labor and Employment (DOLE) - The study

 Department of Education (DepEd), Commission on Higher Education

d. The researchers- The research would be significant to the researchers

V. Scope and Limitation

There is no significant increase in wage when the education and occupation of

There is a significant increase in wage when the education and occupation of a

 Education- is a powerful driver of development and one of the strongest

 Occupation- refers to an activity in which one engages; the principal

 Matched- refers to one that closely resembles or harmonizes with

 Unmatched- refers to one that does not closely resembles or

 Beveridge Curve- refers to the unemployment-vacancy ratio wherein the

 Education- refers to the field of study taken by the college graduates

 Occupation- refers to the primary occupations provided by the National

 Mismatch- refers to the situation when education (field of study taken by

 Matched- refers to the situation when an individual‟s occupation is in line

 Wage- refers to the log of hourly wages which can be obtained by

 Beveridge Curve- refers to the unemployment-vacancy ratio wherein the

I. Impact of Education-Occupation Mismatch on Wage

Education and Income Distribution

The Impact of Education and Mismatch on Wages

Education and Occupation Mismatch in the Labor Market

The study, “The Matching of Educational and Occupational Structures in

Occupational domains are narrowing or sometimes widening in certain

Vocational Schooling as an Advantage Tool in the Labor Market

Productivity in Matched Occupation-Education

Reasons for having Occupations not related to the Field of Study

II. Beveridge Curve

This study presented that the increase in hiring, shortens unemployment

This study presented that an increase in separations results to

William Beveridge identified and implied the negative relationship

The conclusions made in this study was significantly discussed and

Labor Market Mismatches

2009-2010 Bureau of Labor and Employment Statistics (BLES)

A. Impact of Education- Occupation Mismatch on Wage

Recent studies of education and wage determination are almost always

where S represents years of completed education, X represents the number of

1. Skills Mismatches and Labor Mobility

The Beveridge curve reflects the efficiency of the job matching

The vacancy-unemployment (v-u) ratio is V (N)/U(N) and the unemployment

Therefore unemployment and vacancies are being affected by productivity