Date Published:
Feb 13, 2017
Category:
Discussion Papers
Focus Area(s):
Code:
DP 2016-55

In the aftermath of the 2016 election, labor leaders and their political allies pushed for an immediate end to the so-called employment “contractualization”, a policy proposal currently popular with voters and politicians. The idea is for the government to tighten and reduce, if not prohibit, the use of temporary employment contracts (TECs) and job outsourcing. This paper analyzes the policy idea and its potential economic consequences by looking at the roles of TECs and job outsourcing in the functioning of efficient labor markets, the experience of European countries regarding TECs, and Philippine employment data. The study finds that while the policy idea is anchored on good intentions, it can undermine the goal of achieving rapid, inclusive, and sustained economic growth. The realization of this outcome depends on the nature of the policy design actually adopted. On this point, the paper suggests a framework that can be useful in formulating a coherent policy on temporary employment and a strategy for dealing with “endo” practices.

Citations

This publication has been cited 8 times

In other Publications
  1. Kilders, Valerie et. al. 2021. Consumer ethnocentric behavior and food choices in developing countries: The case of Nigeria. Food Policy, vol. 99(C). Elsevier.
In the Media
  1. Bondoc, Jairus. 2018. Full employment will solve ‘endo'. Philippine Star.
  2. BusinessMirror. 2018. Ending jobs vs ending contractualization. BusinessMirror.
  3. Cai Ordinario. 2017. Ending ‘endo’ will cut job opportunities, jeopardize inclusive goal target—PIDS. Business Mirror.
  4. Cai Ordinario. 2017. ‘Fruitful’ meet between Duterte and PHL’s top businessmen—Palace. Business Mirror.
  5. Manila Bulletin. 2018. Ending service contracting will result in job losses to millions of workers — PALSCON. Manila Bulletin.
  6. Mayvelin U. Caraballo. 2017. Govt urged to weigh options for ‘endo’. Manila Times.
  7. Nikki Natividad . 2020. The Long Battle to End ‘Contractualization’ in the Philippines. Vice News.


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