Laborforce participation is the efficiency of the economy to utilize available humanresources. In this proposed study, we would attempt to assess the determinantsof labor force participation among Technical and Vocational Education andTraining (TVET) graduates in the Philippines.
We would like to evaluate the socioeconomic and demographic characteristicssuch as age, gender, marital status, delivery mode of TVET trainings, povertyincidence, population growth, level of urbanization, minimum wage rate fornon-agricultural sector and Regional Gross Domestic Product Per Capita (RGDPPC)that may have influence the employment status among these graduates. This paperwould provide empirical evidence on how these given factors would influence theparticipation of graduates in the labor market and determine of how the economic developmentcorrelates with the labor force participation. Inthis study, we would use primary data of 2014Study of the Employability of Graduatesfrom Technical Education and Skills Development Authority (TESDA) and secondarydata from Philippine Statistics Authority (PSA). For our analyses, we will useprobability model particuarly Probit model since we will have a binary dependent variable which is the labor force participation.
Education plays animportant role on the employment status of the individual,thus, we surmise thateducation is an endogenous variable. To further enrich our analysis, two-stepprobit will also be used to address this endogeneity problem. In this case, wewill use having college education as instrumental variable. Moreover, this research will provide contributions onpolicy making such as improving the employability of TVET graduates and TVETprograms as well.
Also, this study could be a reference work for who wish to intend similar research and this wouldalso provide pertinent materials for the employers/TVET industry partners instrengthening the competitiveness of TVET graduates.