Child Labor and Schooling in the Philippines
Chris Sakellariou
School of Humanities and Social Science- Nanyang Technological University
E-mail: acsake@ntu.edu.sg

This study used a recent nationwide survey (1999 Annual Poverty Indicator Survey) to analyze the decisions of households as a sequential process, using five binary probit models. The study focuses on the effects of poverty, fertility, composition of the household, and the opportunity-cost of schooling. Demand factors are incorporated into the model. The data distinguishes between children who solely go to school and children who work and go to school. It also differentiates paid and unpaid work.

The results confirm the link between poverty and child labor. In addition the study noted that while children from poor households are less likely to enroll in school, they are more likely to work without pay in a family business or farm and are less likely to engage in paid work. Also, results show that the Filipino family assigns roles to its members and larger families may facilitate schooling for at least some of the children. The opportunity-cost of schooling has a significant effect.

The study highlights the importance assigned by parents to the quality of schooling when making decisions. They perceive that the quality of education is directly related to what they get back in return. The study recommends that appropriate targeting mechanisms need to be implemented. Policy and programs must be designed to lessen the financial strain of education to the household and provide incentives for enrolling in school even if children are involved in part-time work.