Job loss and Aging in the Philippines

Job loss scars an individual’s employment prospects and this is especially serious as one ages. Staying in the working force is the common survival strategy especially in developing countries. In the Philippines where job losses are prevalent, little is known on the effects of job loss to one’s reemployment likelihood. This research paper tries to estimate job loss effects in ones’ employment prospects and see other factors that mediate this effect using a panel data culled from a nationally representative survey – Labor Force Survey (LFS) 2007-2008. Estimation was done by using random and fixed effects regression models with job loss, demographic and socio economic factors, industry and labor market condition as independent variables. Additionally, this research paper investigates if job loss effects magnifies with age and if gender differences exist. Results showed that job loss causes about 52 to 78 percentage points reduction in one’s employment probability and is higher for women. Workers with secondary educational attainment are found to be more negatively affected by job loss than those with primary education. The large reduction effect of the job loss to employment likelihood is largely driven by the job losses from services sector and lastly, job loss effects increases with age.