Path Dependence, Increasing Returns, and Philippine Labor Migration Policy

Beginning as a temporary economic solution of the Marcos regime, the labor migration policy has persisted over the years through subsequent regimes — that of Aquino, of Ramos, and of Arroyo. For its persistence, the usual reason of poor economy has been the overly cited culprit. The study maintains this premise; however, it stresses that to fully understand the labor migration phenomenon, one must go beyond the traditional explanation of poor economy. The explanation must be able to stand in case of sustainability of labor migration in the event of economic upturn. Consequently, the study contends that there is another compelling factor — which has risen after the adoption of the policy — that produces strong incentives for persistence. It argues that the labor migration policy over time has generated increasing returns that reinforce the policy, making it path dependent. Increasing returns from the policy are manifested in (1) the phenomenal success of the policy, which makes it very difficult to discontinue; (2) the emergence of a coalition of institutions with a strong interest in preserving the status quo; (3) the adaptation of academic institutions; (4) the flexible response to changes in the international labor market; (5) the multiplier effect of the network of relatives, colleagues, and friends abroad; and (6) institutionalization of labor migration as a “culture of salvation.” The six have generated a persistent pattern that has been definitive over time on government policy decisions. Hence, the increasing returns dynamics has guaranteed the continuity of the policy beyond economics