Explaining growth and inequality in factor income : the Philippines case

This paper analyzes the relationship between growth and inequality of factor income in the Philippines, focusing on the role played by the labor market. It proposes a decomposition methodology that explores linkages between growth in income and labor market performance in terms of labor force participation, employment, working hours, and productivity. This paper introduces a methodology that provides a direct linkage between growth, inequality, and labor market characteristics. It provides empirical analysis using both the Family Income and Expenditure Survey and Labor Force Survey, covering the period 1997-2003.