The Status of The Economy and Its Effect On The Brain Drain Phenomenon in The Philippines

THE STATUS OF THE ECONOMY AND ITS EFFECT ON THE BRAIN DRAIN
PHENOMENON IN THE PHILIPPINES
A Research Proposal by
Barcial, Michaela Marie P.,
Manuel, Shanin Kyle C.,
and Nacino, Dana Klarisse E.
XII - St. Maria Goretti
In Partial Fulfillment
of the Requirements for Research II
Mr. Carlo Roque
Research II Adviser
November 07, 2017

TABLE OF CONTENTS
CHAPTER I THE PROBLEM AND ITS BACKGROUND

Introduction
Background of the Study
Conceptual Framework
Statement of the Problems
Hypotheses
Scope and Limitations of the Study
Significance of the Study
Definition of Terms
CHAPTER II REVIEW OF RELATED LITERATURE
Related Literature
Foreign Sources
Local Sources
Related Studies
Foreign Settings
Local Settings
CHAPTER III RESEARCH METHOD AND PROCEDURE
Research Design
Research Locale
Respondents
Population and Sampling Techniques
Data Gathering Procedures
Statistical Treatment of the Data
CHAPTER IV PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
Methods of Data Analysis and Presentation of Data
Formal Indicators
Tabulation of Personal Accounts
Statistical Treatment
Statistical Analysis and Hypothesis Testing
CHAPTER V SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
Summary of Findings
Conclusions
Recommendations
BIBLIOGRAPHY
APPENDICES
Survey Questionnaire
Tally Table
CHAPTER I
INTRODUCTION
The research is solely focused on presenting the different factors contributing to the brain
drain culture and its continuing effects evidently occurring in the Philippines. The presumed
predicament originated decades ago which eminently affected the economy of the Philippines.
The research aims to clarify how brain drain culture truly prompts the unemployment rate and
plans to provide possible resolutions to the said matter. If the matter will be resolved it will be a
great help in balancing the status of economy, the employment rate and the distribution of jobs.
Brain drain, labor migration and exclusion of advantages are one of the major challenges
that many professionals are facing in the Philippines. One mag claim that this migration from
developing the country is both useful and avoidable, the well-educated professionals are likely to
migrate in their pursuit of higher education and economic improvement. Philippines' labor market
needs cooperation in order to prepare its people for entering this and as well as developing
innovative approaches beyond traditional ways in all sectors that will guarantee the stability of the
democratic, welfare-oriented for the development of the country. Problems that are linked here is
the amount of people with no jobs but they have limited possibilities to be included in this labor
market resulting to emigration to cater into other country's provided opportunities for their possible
workers since they are providing more sufficient and acceptable salary and advantages for their
employees.
BACKGROUND OF THE STUDY
The economic culture of brain drain has been a pervasive issue in the Philippines since
the 1970s, depicting the emigration of Filipino college graduates along with a range of
professional workers, such as engineers, physicians, scientists, teachers, and mechanical

workers (Alburo and Abella, 2002). In the national setting, it has allegedly turning worse for the
last 12 years, exponentially growing from 1998 to 2009 (Domingo, 2012). In terms of labor,
Philippines is facing brain drain issue that deprives the labor pool of the country's experts and
highly qualified professionals. Brain drain in the Philippines continues to be relevant in the
country's economic situation. The lack of government funding for rural community clinics and
hospitals, as well as low wages, continued to perpetuate low job retention rates in rural areas and
slow economic recovery. It is essential to understand the complexity of the nation's history with
regards to labor export and government funding within the society's infrastructure when it comes
to perpetuated problems.
Migration is a vital concept, which comprises a net transfer of human resources commonly
from a developing country to a developed one. Fueled by the streaks of globalization, the mobility
of skilled workers has multiplied through job expectations from a more educated population in
countries of origin, international integration of market systems, and wide innovation in
communication and technology (Battistella, et al., 2013). And, as to appease the national concern,
it was far expected from the Association of Southeast Asian Nations (ASEAN) Economic
Community (AEC) to set an assistance involving Filipino overseas, yet, it was grasped that the
global support only exacerbated the brain drain of highly-skilled Filipino professionals (Employers
Confederation of the Philippines, 2016).
With the same extent, unemployment is also regarded as one of the principal problems in
the field of national macroeconomics. In accordance to the metrics of an independent research
group, despite the 6.9-percent growth of the gross domestic product, it was added that the
Philippines still has the worst unemployment rate in Asia. The growth of GDP, purportedly, is a
deceptive indicator of development (Gonzales, 2016). It has deemed to relatively remaining high,
which exceeds twice the neighboring countries. It has fluctuated over the last 20 years for over
seven to 14 percent. Though the national employment rate is stable, the pointer is still not enough
to diminish the adverse effects of Philippine underemployment, due to rapid population growth
and increased labor force participation. The apparent factors setting off the national dilemma are
believed to be the insufficiency in the availability of jobs, incompetent economic policies that are
often subjected to high unemployment and underemployment, and the poorly productive service
sectors in the late 1980s (Brooks, 2002). Combining the two aforementioned concepts, it is held
by the researchers that the inferior line of Philippine underemployment rate can be an important
factor that prompts Filipino mentality emigrating from a more developed country to suffice their
need. It is, therefore, presumed that without the negative streaks of national underemployment,
brain drain can be probably minimized.
CONCEPTUAL FRAMEWORK
In this paradigm, researchers are ought to disintegrate the causes of brain drain culture in
the Philippines in a macroeconomic metrics. With that, patterns of skilled labor migration would
primarily be quantified through the national statistics varying from the quarters of 2014 to the first
quarter of 2017. As to support the latter, the major causes of the alleged culture will be held as
the study’s conceptual definition—what are the prevalent factors which trigger the emigration of
professionals toward a well-sustained country? Holding this query, researchers would work on an
explanatory framework having the macroeconomic impacts of brain drain as an operational
definition in line with further assessment of the concept.
Having the aforementioned claims, researchers supposed that there is a continuous
exponential growth in terms of skilled migration in the national setting. As such, Philippines have
been constantly subjected to a long history of emigration en route for developed countries, i.e.
professionals head toward USA, Middle East, Canada, Australia, and New Zealand (International
Migration Paper, 2010). Needless to say, it was stressed that in the Philippine database, it has
over 80, 000 individuals who seek occupational opportunities in countries by which Philippines
has a bilateral agreement (UNICEF, 2013). No need to probe as to why these developed countries
are top picked. And as to terminate, these facts paved way for the exploratory study to be
pioneered.
Skilled
Causes of Labor
the Brain Migration in Macroeconomic
Drain the Impacts
Culture Philippines
Input Throughput Output

Figure 1.1
The Theoretical Paradigm
Figure 1 depicted the cause-and-effect paradigm, researchers proposed to utilize by the
succeeding chapters. Cause-effect relationship will be ascertained between variables, the brain
drain culture and its economic impacts, which are not randomly assigned. A causal-comparative
study will be indeed used as the focal treatment in the quantitative research. As to clear out,
researchers would not adapt true experiments, but rather confined their theoretical rationale on a
quasi-experimental study.
STATEMENT OF THE PROBLEM
This study sought to determine and quantify the pervasive culture of brain drain in the
Philippines. To attain the objective, specific metrics were held in this inquiry:
1. What explicit factors prompted the culture of brain drain in the Philippines?
2. How does the status quo of the national economy affect the increasing rate of Filipino
emigrants?
3. How do the study interpret the reasons as to why the emigrants are prompted to settle
overseas rather than in their country of origin?

HYPOTHESES
Ho: Brain drain culture in the Philippines has no significant effects to its national economy
Ha: Brain drain culture in the Philippines has significant effects to its national economy.
SCOPE AND LIMITATIONS OF THE STUDY
The study is narrowed by specific measures. Firstly, the study is confined in a descriptive
manner that connotes how given variables, the brain drain culture and its economic
consequences, will be measured once—as to compare with an experimental approach, which is
trying to measure subjects in a before-and-after basis.
Secondly, the study makes use of a causal-comparative approach, given the existing
conditions of the aforementioned variables. A cause-effect relationship will be ascertained
between brain drain culture as the mover, and its economic impacts as the results. In addition,
the prior is seemingly identified as an independent variable but not manipulated, and the latter
will be the dependent.
Thirdly, as to provide a brief framework of the study. Researchers will be limiting its
measures to the official statistics provided by the Philippine Statistics Authority, and will
furthermore supported by original statistical measures through the use of survey-questionnaires.
Also, it is important to take note that the range of the study starts from the first six quarters of
2015 to 2016 up to the first quarter of 2017, to indicate, by chance, if there is either a positive or
negative differences between the transitions of years.
Lastly, any economic concepts and disciplines that may be relatable with the subjects
being measured are considered beyond the margins of the study, unless, are openly disclosed
by the researchers itself as part of the study. Nevertheless, if those facts overlapped the actual
objective of the research, researchers are ought to be open to any amendments.

SIGNIFICANCE OF THE STUDY
Probing into the economic history of the Philippines has been an important procedure in
assessing the national advancement down to the streaks of regression. To specify a vital
phenomenon that may constitute the latter is held equally important, as it, in a more conventional
approach, determines specific patterns that may contribute to the global problem. As to support,
the universality of brain drain, thereby, in Philippine setting, has played a crucial role in integrating
the economic status quo of the country. Hence, this study has raised the issue of the brain drain
culture in able to provide objective responses to limited global queries, such as the exponential
growth of Philippine emigration rate, the growing index of local to national inflation, and such
economic indicators that added up to the value of the study—what is the real role of brain drain
in the country’s economy? Nevertheless, these specific concerns are not within the true metrics
of the research.
Wrapping it all up, this study regarding the causes of brain drain culture and its economic
effects in the Philippines serves as a learning paradigm and basis for the bigger problems
associated with the country's employment rate and employment system. This is but a small
contribution to the Philippine's history of the economic aspect through employment system. This
study’s goal is to identify the topmost factors as to how brain drain culture occurs and becomes
incessant. This study also aims to distinguish the economic effects of brain drain culture in the
Philippines.
DEFINITION OF TERMS
Technical terms found in the paper were defined operationally are as follows:
Brain drain in this study pertains to the migration of skilled professionals from Philippines,
as a developing country, toward a more industrialized nation.

Causal-comparative is the type of research approach utilized by the researchers to
establish the cause-effect relationship between alleged variables.
Emigration is a technical translation of brain drain delineating the mass departure of
Filipino workers.
Exploratory Framework is a line of attack used to further disintegrate the concepts under
the research paradigm.
Indications are economic pointers used to assess the pattern of brain drain in the study.
Macroeconomics is a general concept under economics; it is used as a metric to assess
the impact of brain drain in the national setting.
Migration is synonymous to emigration, only it differs in terms of the scope of mass
departure as it is held generally.
Skilled Labor Migration in this paper refers to the transfer of human resources to a more
developed state.
Unemployment concerns the insufficiency of job opportunities in Philippine setting, which
considerably is one of the main factors for having brain drain.
Quasi-experimental is another translation for a causal-comparative research that often
differs from the metrics of a true experiment.
Regression is a metric, researchers used, to determine the diminishing advancement in
terms of Philippines’ economic status quo.

CHAPTER II
REVIEW OF RELATED LITERATURE
The constituents of the study would be confined on defining the variables used by the
researchers and would be backed up through the presentation of the local to foreign economic
status quo. The foreign and local materials used, thereby, are significant in constructing a
theoretical analysis of the research.
A. RELATED LITERATURE
1. Foreign Sources
Streaks of Brain Drain
An issue that is faced by many parts of the world, human capital flight or skilled
professionals seeking out work abroad than their home land are driven by the rate of
unemployment, political issues specifically oppression and wages. Brain drain does not only
affect the country's economy but it also puts their nation at risk (Writers, 2011). Countries such
as Ethiopia, Nigeria, Kenya, South Africa and Iran are the top 5 countries that are severely
affected by brain drain phenomenon. These nations, often those in the developing world, must
make major economic and social changes to retain their best and most skilled workers over
the long term since their citizens are migrating grows larger each year. Country like Ethiopia
can produce a huge amount of professionals mostly in the medical field and although they
have skilled workers and such, they are experiencing the worst brain drain of any country in
the world. 75% of their skilled professionals are fleeing out overseas resulting to leaving them
with few physicians, engineers and scientists. (Shinn, 2002) Another African nation, Nigeria
also seems to have suffered a massive brain drain due to their unreliable power and few
resources barely motivates their own professionals to stay in their country when they can have
higher paying jobs in the U.S. and European countries that is why almost 2 million Nigerian
lives in America with 20,000 of them that are doctors and 10,000 are academically inclined
leading to a downfall in their country since they desperately need professionals to further
enhance their very little resources (Tsika, 2017).
Poverty Incidence in Developing Countries
The milieu of brain drain has been a societal stigma and an economic dilemma to the
developing countries. On a critique posted by the World Bank (2012), it assessed the
percentage of global poverty in a third world scale. As such, by the statistical report of 1.23
million households, the number of people constrained in the poverty line declined from 1.94
billion, which was approximately half of the population of the developing world. Consequently,
the decline was visibly seen mostly in the East Asia, having 77% of its population in 1981
down to a percentage of 22 in 2008. The prior figure is followed by that of Middle East’s, North
Africa’s and South Asia’s poverty incidences. Nonetheless, in the latter divisions, there is a
decline of 9.6% in 1981 to 2.7% in 2008. With the following statistical figures, it is fairly
reasonable to conclude that since the transfer of human capital resources is mostly pervasive
in developing countries, poverty incidences may be a contributing factor to the economic
culture.
Equally important, the richest country in the world, the United States, has barely natural
resources just like Japan, Hong Kong, England and Taiwan but on the other hand, continents
such as Africa and South America are probably the richest continents in natural resources but
are the home to the world’s poor. By contrast, Ethiopia, Liberia, Mali, Comoros, Nepal and
Haiti are also a home to the world’s poorest people. Considering that some of these countries
are part of the third world or usually known as the “developing” countries, they have
experienced poverty to its extent. In the face of such enormous external influence, the
governments of poor nations and their people are often powerless. As a result, in the global
context, a few get wealthy while the majority struggle (Williams, 2004).
Global Unemployment Crisis
With regards to a report by Loungani (2010), all over the world, the estimated people who
are unemployed are 210 million and an addition of over 30 million, since the start of Great
Recession of 2007. The apparent predicament is particularly critical in United States, the
center of Great Recession. As such, the alleged country has the highest increase in
unemployment database with 7.5 million unemployed people since the streak of the recession.
To further develop the prior statements, refer to the following:
1
The Cost
Immediate cost in the increase in job loss is the loss of earnings yet further researches
shows that it also has an impact on life expectancy and families.

2
The Cause
Some underlying causes of the increase in unemployment primarily is the fall in demand
also increases in income inequality which leads to behind severe financial crises.
3
The Cure
The cure to the said predicament is for the government policies to support the demand
recovery in the labor market.
2. Local Sources
National Labor Productivity
Labor productivity is the span of economic augmentation. Labor productivity assesses the
volume of goods and services being produced by a certain time of labor. In detail, labor
productivity measures the amount of GDP or real gross domestic product that are done by
workers in an hour. A boost in labor productivity relies on the factors of investment and
savings, new technology and human capital (Lister, n.d.).
Labor productivity is directly linked to revamp and improve the standards of living in the
form of higher consumption. As an economy’s labor productivity rises, it yields more goods
and services for the same amount of relative work (Kacik, 2012). This escalation in the
production of output makes it possible to consume more of the goods and services for an
increasingly reasonable amount. Below are the data of the National Labor Productivity of the
country.
Sources from Philippine Statistics Authority
Poverty Incidence in the Philippines
The upturn of poverty has been active and irregular. The incidence of poverty has
remained significantly high as compared with other countries for almost a decade. The
unsteadiness of the recession has been attributed to a large range of income brackets across
regions and sectors, and unmanaged population growth resulting to Philippines having the
same level of poverty as Haiti. In the Philippines, severe poverty has been determined and
estimated to be 19.2% of the population or 18.4 million people. Greater population of the poor
in the Philippines lives in rural areas and works in the agriculture sector which is mainly in
farming and fishing. Urban poverty on the other hand has been increasing in recent years.
Migrants without jobs or with low paying jobs are unable to afford decent housing. As a result,
Philippines have a huge amount of informal settlers who are among the poorest of the poor.
(Bello, 2013) Among Philippine citizens, the poor are most vulnerable to financial and price
shocks and natural disasters. Often their efforts to cope with these shocks and make up for
lost livelihoods and income result in deeper levels of indebtedness.
Unemployment in the Philippines
A country’s major indicator of economy’s health status is employment rate. Despite the
Philippines’ rising growth in economy unemployment is still evident. A study entitled “A Jobless
Growth: Why Is Unemployment Still High in the Philippines” investigates the effects of
education, inflation, consumption, and Gross Domestic Product (GDP) growth on
unemployment in the Philippines. It used Ordinary Least Squares to determine impact of each
factors affecting unemployment. Several theories state that an increase in education and
consumption is associated with a decrease in unemployment. However, the findings suggest
that the country’s labor force grows faster than its GDP. In addition, the government highly
focuses more on education and less on the availability of jobs which means oversupply of
potential laborers would lead to unemployment. Employment measures productivity, as well
as the effects of economic events such as recession. Prior to the Asian crisis in 1996, the
unemployment in the Philippines fell to a low rate of 8.8%. More recently, in the first quarter
of 2013 the country achieved a booming 7.8% growth, making it the fastest growing economy
in Asia. However, unemployment remained high. As of April 2013, there are 7.25 million
Filipinos underemployed, and another 3 million with no jobs.

According to former National Economic and Development Authority (NEDA) Deputy
Director-General Emmanuel Esguerra, “there is a need to improve the employability of worker
applicants, particularly those with secondary and tertiary education.” The Philippine
Government addressed this problem by implementing the K+12 education program which also
means after senior high school a student is already certified to work. Nevertheless, the
significance of new educational framework to the country’s unemployment and its sufficiency
to the economic growth is uncertain.
In accordance with NEDA, the number of employed Filipinos decreased in January 2017,
partly due to the recent typhoons that affected the agriculture sector. The January 2017 Labor
Force Survey (LFS) of the Philippine Statistics Authority (PSA) showed that the country’s
employment rate declined to 93.4 from 94.3 percent a year ago. According to Socioeconomic
Planning Secretary Ernesto M. Pernia, employment losses in the agriculture sector has been
greatly affected by typhoons Nina and Auring last December of 2016 and January of 2017.
He stated that the government must provide interventions to diversify the sources of income
of workers in the agriculture sector, increase labor participation of women, and address youth
underutilization. Pernia thinks that prospects for job generation may be raised due to the long
list of infrastructure projects of the residing administration. He also said that a number of the
said projects are going to be foreign-funded which means more technical and blue-color
workers who are available in the domestic labor market could be employed.
B. RELATED STUDIES
1. Foreign Settings
Margins of Skilled Migration
International migration has prevalently turned to be a substantial scheme, which streams
on every corner of the globe having the general distinctions between the countries of origin,
and the transit and destination obsolete (International Migration Report, 2015). In a positive
schema, the culture of brain drain in a foreign metrics is viewed progressively in the platform
of third world countries, for instance on the degree of income-maximization and on the
stimulation of comprehensive education. As such, it minimizes the international transaction
costs and amasses benefits in the domestic country from the returnees and the dispersion
abroad. Nevertheless, on the same research domain, the alleged affirmatives of brain drain
on source countries are not widespread and are not pertinent at every economic situation
(Docquier, 2014).
In contrast with the prior milieu, the culture of brain drain more likely pursues fiscal loses,
reduces human capital, and prompts occupational distortion. As such, there are general
distinctions between brain grain and the latter, brain drain. Delineating on the margins of brain
drain, it is formally referred to as the human capital flight. The prime indication of brain drain,
indeed, is the exponential loss of highly educated population followed by the adverse
economic consequences – the direct monetary impacts (Lowell, 2010).
Transfer of Human Capital Resources
Following the aforementioned claims, brain drain formally depicts the transfer of human
capital resources pertaining to the emigration of highly skilled individuals from local to foreign
countries. As to reiterate the prerogative, it has been perceived as a massive restraint on the
economic development of underprivileged countries (Migration Policy Institute, 2011).

Statistically based, the account of brain drain from developing countries has adversely
accelerated having the tripled rate of foreign-born nationalities in developed countries. Diverse
countries utilize their best strategies to entice foreign professionals through global promotion
and consumerism, at this report, thereby, amplifies the opportunity gap for brain drain in the
sending countries (Docquier, 2014). Equally important, the impact of human capital flight in
developing countries seemed to be more of unconstructive as it rummages through the labor
shortages, skill structure of the labor force, and the fiscal policy. However, it also works on a
subtle positive scale as it generates remittances and benefits from expatriates and returnees
– it can triggers the advancement of the education system and income levels of a host country
(Miyagiwa, 2012).
To determine the cause of the alleged underdevelopment in the host country is held
imperative in the study, i.e. it may be secondary to the country’s governmental system and its
policy objectives. As to support the preceding definitions, there is an exponential growth in the
metrics of international emigrants, hence, the range drifts between 75 million in 1960 and 214
million for the latter years to 2010, this statistical figure is hatched from the census of United
Nations Global Migration Database (2010). By this means, the world migration relatively
increased from 2.5% to 3.1% of the world population. The prime factor which was credited
with the alteration of rates was due to the alleged break-up of the former Soviet Union.
Nevertheless, the margins of the international migrants in the world population has been
stabilize for the prior years.
Moreover, the study would also prompt on the wide-ranging definitions of human capital.
To begin with, it is important not to confuse labor power as a physical sense with the intangible
concept of human capital. Human capital, thereby, is not narrowed with the factors of
production as of the physical labor, but rather, it is classified as the innovative human faculty
sustained with exclusive characteristics of knowledge (Waggle, 2007). In accordance with the
preposition of Adam Smith (1968), the human capital that is marginalized at the culture of
brain drain pertains to the technical knowledge and stock of productive skills of labor. It is the
learnt skills and knowledge of the social actors by which there is a wide acquisition of aptitudes
and talents devised by education, study, or apprenticeship. He referred those talents as a
societal fortune as the enhanced dexterity of professionals is as the same platform as the
machineries or instrument of trades that abridges labor and repays the alleged expense with
a profit.
2. Local Settings
Historical Accounts of Brain Drain
In a local gage, the streaks of brain drain are defined as an undesirable stigma in a
developing country, the Philippines. In an official report created by Secretary Dante A. Ang
(2008), the chairman of the Commission on Filipino Overseas, he critically explained the
causes and consequences of Philippine international migration. The study first ran through
the historical analysis of the national migration, as such there were three consecutive waves
of migration that occurred in the past up to the contemporary realm. The first wave
commenced during American colonization era, by which early Filipinos were lured to arrive as
pensionado or scholars in the United States. The alleged entitlement was a form of
dispensation given to the local elite by the American colonial government – this contributed
into the vital making of Commonwealth governed by Filipinos.
The prior upsurge of early Filipinos was followed by the next wave that was kindled after
the Second World War. In accordance with the report filed during the insurgency, Filipino
veterans and war brides of U.S. service men were granted the freedom to migrate to the
United States together with their dependent relatives, as long as they served or were under
the U.S. armed forces. The constraints in terms of Asian immigration were reduced through
the latter reforms of Canada (1962), the United States (1965), and Australia (1966). The third
wave, on the other hand, turned to be more passive than the preceding waves as it came in
the form of contract labor during the 1970s. The era was marked by its critical unemployment
rate, in particular with the standing of professionals, i.e. on the percentage upheaval of 11.8%
in the 1970s toward the post-Martial Law era carrying the highest percentage of 12.7% in the
history of Philippine labor force surveys. Along with the first indicator, rates of
underemployment were also prevalent during the time, say it has the 11.72% of the national
workforce. Correspondingly, the oil boom of the Middle East also opened opportunities for the
skilled labor migration from the host country, Philippines, to other countries.
Linear Causes of Brain Drain
To provide support with the aforementioned historical accounts and statistical figures, the
study also scrutinize on the possible causes that prompts the culture of brain drain in the
Philippines. Hence, the following are the pervasive factors, which set off the exponential
growth of national skilled labor migration:
1
The Economic Decay
Brain drain, ought to be simplified in a neutral view satisfies the basic needs of Filipinos;
as in a rational scale of emigration, it seeks for a better standard of living, higher salaries,
technological innovation, and a fight for political and economic stability that the host country,
Philippines, may scarce (Ilagan, 2013). On a parallel research conducted in De La Salle
University, it exemplified that young professionals’ tendency to work overseas is due to the
pursuit of educational advancement and economic improvement. Hence, the economic status
quo of Philippines may not be sufficient enough to withstand the needs of Filipino people, and
they are more likely compelled to move toward a more developed country to suffice those.
Thus, the distinction between the push and pull economic factors were depicted in the study.
Having the prior proposition, the lacking of economic stability in the host country would be the
push factor; the availability of financial security in a more developed country is therefore the
pull factor. To further simplify the disparities between two factors, use the economic metrics:
insufficiency of salaries, employment hazard pay, and poor health insurance, are the push
factors; adequacy of salaries, economic competencies, and better compensations, are the
pull factors.
2
The Unemployment Drawback
Real wages are relatively low in the Philippines that are affected by a high rate of
population growth, lack of access to land, insufficient job creation in different sectors and
industries, and the accounts of incompetent economic policies. The adverse instances
believed to be the primary factors for the high proportion of unemployment and
underemployment rate in the Philippines (Magallon, 2014). In a parallel study pursued by the
Department of Labor and Employment, it considered the rightful qualification for job as an
important value that may affect the rate of national unemployment. Along this line,
overqualification or underqualification both attributes to the scale of job opportunities,
including the inadequate information about the labor market, and the insufficient education
and training. As to support the above data with a statistical analysis by the National Statistics
Office (1999) reported during the previous decade, approximately half, 54.7% of the emigrants
were college graduates, and about one third, 31.8% of the population were identified with
higher degree level. Nevertheless, with regards to the statement of Go (2003), he affirmed
that the skills mismatch between the professionals’ educational attainment and their actual
jobs has something to do with the problems of unemployment.
3
The Overseas Paybacks
Philippines has been considered as one of the top sending countries of professionals,
particularly the local doctors and nurses, to the Organization for Economic Co-operation and
Development (OECD) countries. Highly skilled Filipinos tend to seek better job opportunities
abroad, specifically to those included in the bracket of health sector. As such, DOST-SEI
(2011) filed an initial report with regards to the international migration of Science and
Technology (S&T) professionals allegedly due to wider opportunities overseas. And, Middle
East is one of the top ten destination countries for S&T migrant workers. One of the prime
factors, indeed, deemed by economic experts to activate the broad incidences of brain drain
in the host country is the difference in terms of income between the host country and the
developed country. In fact, availability of data with regards to the latter asserts that migrant
workers overseas are received high levels of income, reaching almost six-digit salaries;
physicians got the highest monthly income at an average of Php 655, 191 (DOST-SEI, 2011).
Furthermore, on a parallel research findings by DOST-SEI, it contended that the
occupational environment and the economic benefits and social security given to
professionals should be principally taken into account. For the following reasons, it is
unreasonable to defy relatively high incomes and benefits upheld by employers overseas. The
quality education and healthcare provided as initiatives to the Filipino professionals and
laborers are essential features that may not be openly implemented in the host country (ADB,
2007). And with the dilemma, formal legislation suggests that the Philippine government is
highly responsible for monitoring the deployed OFWs, pursuing different governmental
domains such as the Department of Labor and Employment (DOLE), Philippine Overseas
Labor Offices (POLOs), the Philippine Overseas Employment Administration (POEA), the
Overseas Workers Administration (OWWA) and the National Center for the Reintegration of
OFWs (NCRO).
C. Synthesis
Brain drain has been a massive stigma in developing countries, though it could
constructively attack on a host country’s economic status quo through remittances, its alleged
paybacks are still not enough to counter its adverse effects to the national economy. In line
with this, the linear factors contributing to the transfer of human capital resources are
identified, i.e. Philippine economic decay, national unemployment drawback, and the
overseas paybacks. In the metrics of economy, brain drain is viewed through the push and
pull factors – how it streams between a host country toward a developed country.
National Labor Productivity shows the relationship between the product or output and the
labor time. It shows the time that it took to generate and produce the output that is shown
through the ratio of an output per hour. Labor productivity is an essential factor for economic
growth since it helps escalate the consumption of products and services. Through the
consumption, it boosts the production resulting to a breakthrough in the investment, savings,
technology and capital.
Poverty is one of the most sought issues of most countries especially those that are
developing. It is an issue that has been going on for decades resulting to recession in terms
of different sectors. Poverty in the Philippines can be very evident since it is physically seen
through the informal settlers that’s been taking toll in the cities. Usually those who are affected
by poverty are most vulnerable financially, price rolls and calamities. Although Philippines is
not only the country experiencing poverty, it has been a struggle to the global context.
Furthermore, in Philippine setting, unemployment has remained high despite fast
employment growth in the previous years also because of the rapid population growth. In
accordance with the study, Why Is Unemployment High in the Philippines? High employment
declines were positively correlated to the real GDP growth and negatively correlated to the
real minimum wage. The study suggests that in order to reduce unemployment rate there
should be increase in economic growth and moderation of increases in the real minimum
wage.
CHAPTER III
RESEARCH METHOD AND PROCEDURE
On this chapter, researchers are ought to expound on the method and measures they are
about to use in the study, the research design, the research locale, the respondents, the
instrumentation and distribution of statistics, the data gathering procedures and the statistical
treatment of the data.
Research Design
The study worked on a causal-comparative research design constrained on what factors
caused the pervasion of brain drain culture in the Philippines. As such, a causal-comparative
method is imperative in an attempt to establish a relationship between the variables. The culture
of brain drain and its ground would be the experimental variable that would take effect over the
dependent variable, the national economic effects. Yet, it is clear under the metrics of the alleged
research design that the study do not have an absolute control over the independent variable,
hence, as an alternate procedure, the prior would be systematically defined but not manipulated.
Research Locale
There are no concrete institutions the study have to be confined with, nevertheless,
researchers have analytically took on formal online institutions prescribed by Philippine
government. Legally, researchers accessed mainly on the online domains of Philippine Statistics
Authority and Commission of Filipino Overseas.
Philippine Statistics Authority is previously referred to as the Bureau of Census and
Statistics, primarily attributed to be the local statistical agency for the collection of statistical
figures from the local to national scale. The study did and would make use of the institution to run
on the dissemination of data and statistics relevant to the study, such as the measures of labor
productivity, national emigration (rate), and other economic data ought to structure the study.
The platform of Commission of Filipino Overseas, on the other hand, is an economic
sphere responsible for the challenges of migration and development. As such, researchers
deemed this government institution to be an essential indicator to quantify the statistical profiles
of registered Filipino emigrants, which will served as the study’s intangible respondents, these
are accessible given the freedom of information law.
Respondents
The primary respondents to be used in the study is held intangible and are formally given
by the census of the purported governmental institutions. A total of 50 respondents (OFWs) were
chosen for the formality of the research. However, the succeeding table are generated from the
general respondents of the Commission of Filipino Overseas – the statistical profiles of registered
Filipino emigrants, and would merely be used as a guide in interpreting the data.
Table 3.1
Number of Registered Filipino Emigrants by Age Group
2012 2013 2014 2015
18,887 17,170 18,014 21,581
8,493 8,309 8,401 11,102
8,898 8,029 8,396 8,902
8,847 8,060 8,790 9,178
8,867 8,546 9,284 10,238
7,095 6,677 7,323 8,700
5,274 4,990 5,159 5,901
3,749 3,342 3,534 4,248
2,961 2,979 3,081 3,291
2,976 3,159 2,870 3,182
3,160 2,804 2,496 2,710

2,263 2,184 1,786 2,061
2,170 1,978 1,555 1,902
1 2
83,640 78,228 80,689 92,998
30 30 30 29
Population and Sampling Techniques
Since the study is dissected into two processes, there would be a wide set of population
chosen through a purposive sampling technique. The first bracket would be objectively derived
from the actual respondents of Philippine Statistics Authority and Commission of Filipino
Overseas, wherein there was a formal allocation of samples, to properly ensure the validity of
respondents. Nonetheless, the study would not be narrowed down by the given statistics, for as
to further sustain the prior process, researchers would be conducting a survey-questionnaire to
the selected 50 respondents who are knowledgeable of the culture of brain drain and are familiar
with the margins of Philippine economy.
Data Gathering Procedures
To draw together necessary data and statistics, researchers went into the following
elemental practices before the proper instrumentation:
1. Good library groundwork in local institutions, i.e. on De La Salle University, Manila, as
preparation for the review of related literatures and instruments;
2. Well-founded literature reviews acquired from circulation books, refereed journals,
scholarly articles, and those of that are found on authentic online databases;
3. Systematic acquisition of statistical figures and databases with regards to the fundamental
concepts of the study, retrieved from the Philippine Statistics Authority, Commission of
Filipinos Overseas and Trading Economics;
4. Selective measures, i.e., the economic indicators to perceive the degree of national
development, are also utilized;
5. Presupposed use of survey-questionnaire technique for an informant selection by which
the validity of the results would be based,
6. The readiness of the consent form before the proper instrumentation is ought to be
ensured,
7. As to support the fifth procedure, there are necessitated informations and figures to be
found, thus, expert opinions through the surveys are mandated;
8. Presupposed tabulation of the survey results;
9. Piling up of the accumulated data and statistics;
10. Presentation, interpretation, and analysis of the data gathered.
Notice: Brackets five to nine are presupposed at the initial start-up plan of the study, thus,
the actual transcription of data, statistics, and figures are to be followed and to be further
delineated on the succeeding data gathering procedures.
Statistical Treatment of the Data
The compilation of data, census, and statistics derived from the aforementioned
institutions would be interpreted as to match the objective of the study and to assess whether the
study has to either accept or reject the hypothesis. As such, a percentage distribution per
statistical data would be used – this is for the descriptive part of the research. The latter portion
would be to measure the variables through the measures of variation and to test the hypotheses
per question through two tailed T-test. The study made use of IBM SPSS for each statistical
treatment, nevertheless, the following are the formula to be used for manual computation.
A. Measures of Variation
∑ 𝑓𝑋𝑚
𝑚𝑒𝑎𝑛 =
𝑁
∑𝑓
−< 𝑐𝑓
𝑚𝑒𝑑𝑖𝑎𝑛 = 𝑙 + ( 2 ) 𝑖 =? ?
𝑓
𝑑1
𝑚𝑜𝑑𝑒 = 𝑙 + ( )𝑖
𝑑1 + 𝑑2
2 [∑ 𝑓 𝑥𝑚 ]2
√(∑ 𝑓 𝑥𝑚 − )
𝑛
𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛: 𝑠 =
𝑛−1
B. Formula for one sample T-test
This is done to compare the mean population of Filipino emigrants (OFWs) to a specified
theoretical mean.
𝑚− μ Where:
𝑡=
1 m = mean population
𝑠 μ = theoretical mean
√𝑛
s = standard deviation
n = size
CHAPTER IV
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
On this chapter, the data gathered are analyzed and interpreted by the succeeding scales.
Firstly, by the formal indicators provided by the National Statistics Office (NSO) of the Philippines
per se, the national economic standing was presented through various census, as the prior is
used to determine the causality of the variable with the national brain drain phenomenon.
Secondly, the response of 50 OFWs is the prime value that determined the success of the study,
which were all gathered through the distribution of survey-questionnaire by a purposive sampling
technique. Measures of variation and one-sample T-test are used as statistical treatment to
measure the significance of each scales. As such, the questionnaire is in a five-point bipolar
response. Lastly, necessary tabulation and graphs are provided under the presentation of data.
METHODS OF DATA ANALYSIS AND PRESENTATION OF DATA
4.1 Formal Indicators: Economic Rates in the Philippines
Table 4.1
Unemployment Rate in the Philippines

Philippine unemployment rate increased from 5.4% a year ago to 5.6% in the third quarter
of 2017. With regards to the tabulation of NSO, the population of the unemployed exponentially
grow by 41 thousand to 2.37 million, while the employed population decreased by 784 thousand
to 40.17 million. In the interim, the participation of the labor force fell from 63.3% to 60.0%, wherein
55.5% of the total population of the employed is in the bracket of the service sector, followed by
the 25.2% of the agriculture sector, and 19.2% of the industry sector. Wrapping it all up, the
Unemployment Rate in the Philippines got an average of 8.55% from 1994 until 2017—the highest
rate was in the first quarter of 2000.
Table 4.2
Economic Growth in the Philippines per GDP
The rate of the country’s Gross Domestic Product (GDP) is among the top indicator to
measure its economic status quo. Thereby, GDP of the Philippines grew 1.7% per quarter for the
first three months until June 2017, the growth then fell down to 1.3% in March 2017. While in the
first quarter of 2017, the service sector grew 1.5%, the industry sector, 2.1%; and the agriculture,
hunting, forestry and fishing expanded 1.6%. All in all, as indicated in the formal census, the
economic status rose 6.5% annually.
Table 4.3
Inflation Rate in the Philippines
The Inflation Rate in the Philippines is assessed based on the consumer prices. As such,
the prior increased a total of 3.4% in September 2017. The highest recorded inflation rate at the
current year was on April. There was an exponential growth in the cost of food, transport, and
housing and utilities. How this affected the marketplace, i.e. is on the price hike in terms of
housing, water electricity, gas and other fuels, which rose from 2.8% to 3.8%. Even with the cost
for health increased from 2.3% to 2.4%. The consumer price reached 3.3% on the latter year—it
was recorded highest on September 2014. Needless to say, for the current year, the central bank
projected an average 3.2% inflation rate.

4.2. Tabulation of the Personal Account of Emigrants
On this paper, 50 respondents in the bracket of Overseas Filipino Workers (OFWs) are
randomly assigned. In lieu of the formal census, researchers were able to construct their own
pattern by the alleged data gathering procedure—wherein half of the respondents were surveyed
online.
Personal data 1: Range of Ages
AGE OF EMIGRANTS
18-24 25-34 35-44 45-54 55-64
Table 4.4
The graph represented the ratio of the different age range of the respondents. Out of 50
respondents, the highest is 40% which shows that 35-44 years old has the highest rate of
emigrants. In addition, 29% are 25-34 years old, 20% are 45-54 years old, 8% are 55-64 years
old and the least is 3% which includes workers under 18-24 years old.
Personal data 2: Scope of Civil Status
CIVIL STATUS
Married Single Separated Others
Table 4.5
The graph represented the ratio of the different civil statuses of the respondents. Out of
50 respondents, 51% is the highest rate accumulated for the married emigrants while single
emigrants has 39%. The separated respondents has 7% while other civil status has 3%.
Personal Data 3: Countries of Emigration
COUNTRY OF EMIGRATION
United Arab Emirates Saudi Arabia United States of America Singapore Australia Others
Table 4.6
The graph represented the ratio of the different countries of emigration of the respondents.
Out if 50 Filipino emigrants, the highest rate has 32% which is working or has already worked in
United Arab Emirates while next to it were other countries that was not specified that has 26%.
Third country was Saudi Arabia that has 15%, next to it was United States of America that has
12% then Australia that has 9%, lastly was Singapore that has 6%.
Personal data 4: Span of Jobs Overseas
JOB ABROAD
Professionals Service and Sales Technicians and associate professionals Others Managers
Table 4.7
The graph represented the ratio of the different jobs of the respondents in other countries.
Out of 50 Filipino emigrants, the highest rated job the researchers had acquired was Professionals
in different fields and industries which has 45%. Next to it was jobs related to Service and Sales
that has 25% then other jobs which was not specified because of certain reasons such as
confidentiality. Fourth was Technicians and Associate Professionals which has 12% and lastly
was Managers which has 5%.

STATISTICAL TREATMENT
Researchers made use of IBM SPSS to analyze the data sought from the survey-
questionnaire. In able to determine the causality between the effect of the economy in the local
brain phenomenon, frequency tables and histograms for each categories were presented. Equally
important, this paper also conferred on a T-test as a statistical treatment for hypothesis testing.
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10
Valid 50 50 50 50 50 50 50 50 50 50
N
Missing 0 0 0 0 0 0 0 0 0 0
Mean 1.52 1.90 1.92 1.94 2.18 2.04 2.14 1.40 1.86 2.22
Median 1.00 2.00 2.00 2.00 2.00 2.00 2.00 1.00 2.00 2.00
Mode 1 1 2 2 1a 2 1 1 1 1
Std. Deviation .614 1.074 .944 .793 1.024 .856 1.030 .670 .926 1.200
Statistical Analysis of the Overall Variables
Table 4.8
The table per se indicated the measures of variation for each questions, i.e. the mean,
median, mode, and the standard deviation are taken. The maximum value of the means is 2.18
under question five (5), while the minimum is 1.40 under question eight (8), by which both
extremes are to be interpreted on the preceding chapters. The median ranges from one to two
(1-2), and the modes are one (1) and two (2). The standard deviation on the other hand varied
from question to question, the highest point is 1.024 under question five (5) and the lowest point
is 0.670 under question eight (8).

As to indicate for the conventional procedures, the following are the formula for the
measures of variation, which are used for manual computation:
∑ 𝑓𝑋𝑚
𝑚𝑒𝑎𝑛 =
𝑁
∑𝑓
−< 𝑐𝑓
𝑚𝑒𝑑𝑖𝑎𝑛 = 𝑙 + ( 2 ) 𝑖 =? ?
𝑓
𝑑1
𝑚𝑜𝑑𝑒 = 𝑙 + ( )𝑖
𝑑1 + 𝑑2
2 [∑ 𝑓 𝑥𝑚 ]2
√(∑ 𝑓 𝑥𝑚 − )
𝑛
𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛: 𝑠 =
𝑛−1
4.3 Statistical Analysis
1. I get better opportunities abroad than in my own country.
Frequency Percent Valid Percent Cumulative

Percent
Strongly Agree 27 54.0 54.0 54.0
Agree 20 40.0 40.0 94.0
Neutral 3 6.0 6.0 100.0
Total 50 100.0 100.0
Frequency table 4.1
Out of 50
respondents, 6% of them had a
neutral opinion that they get better
opportunities abroad than in their
own country. Next was the 40% that
simply agreed and lastly was the
54% that strongly agreed that they
get better opportunities in other
countries than in their own country.
Histogram 4.1
4.4 Hypothesis Testing
One-Sample Test
Test Value = 50
t df Sig. (2-tailed) Mean Difference 95% Confidence Interval of the

Difference
Lower Upper
Q1 -558.206 49 .000 -48.480 -48.65 -48.31
Hypotheses:
Ha: There are better opportunities abroad than in the Philippines.
Ho: There are no better opportunities abroad than in the Philippines.
Decision Rule:
If p < .05, the difference between the sample-estimated population mean and the comparison
population mean would be statistically significantly different.
Conclusion:
Since the Sig. 2-tailed value (p = 0.0005) is less than the p value, there is a significant effect
between the means (p < .05). Therefore, reject the null hypothesis and accept the alternative.
There are better opportunities abroad than in the Philippines as deduced by the emigrants.
2. I tend to settle abroad to suffice my daily necessities and the needs of my family.

Percent
Agree 15 30.0 30.0 76.0
Neutral 8 16.0 16.0 92.0
Disagree 2 4.0 4.0 96.0
Strongly Disagree 2 4.0 4.0 100.0
Total 50 100.0 100.0
Frequency table 4.2
Out of 50 respondents, 4% of them strongly disagreed and another 4% just simply
disagreed to settle abroad to provide for the daily needs of their families. 16% from them was
neutral about it and 30% agreed
upon staying abroad for their
family’s daily needs. The largest
part came from those people who
strongly agreed to settle abroad to
suffice the daily necessities of their
family which has 46%.
Histogram 4.2
One-Sample Test
Test Value = 50

Difference
Lower Upper
Q2 -323.316 49 .000 -48.000 -48.30 -47.70
Hypotheses:
Ha: Emigrants tend to settle abroad to suffice the needs of their families.
Ho: Emigrants tend to settle abroad not to suffice the needs of their families.
Decision Rule:
Conclusion:
They tend to settle abroad to suffice the needs of their families as deduced by the emigrants.
3. There is an insufficiency in terms of the availability of jobs in the Philippines.

Percent
Agree 20 40.0 40.0 78.0
Neutral 8 16.0 16.0 94.0

Valid
Disagree 2 4.0 4.0 98.0
Total 50 100.0 100.0

Frequency table 4.3
Out of 50 Filipino emigrants, only 2% strongly disagreed, 4% are those who just simply
disagreed and 16% are those who had neutral opinion about the insufficiency in terms of the
availability of jobs in the Philippines.
However, those people who simply
agreed got the largest percentage
which has 40% and 38% strongly
agreed that there really is
insufficiency in terms of the
availability of jobs in the Philippines.
Histogram 4.3
One-Sample Test
Test Value = 50

Difference
Lower Upper
Q3 -358.802 49 .000 -48.040 -48.31 -47.77
Hypotheses:
Ha: There is an insufficiency in terms of the availability of jobs in the Philippines.
Ho: There is a sufficiency in terms of the availability of jobs in the Philippines.
Decision Rule:
Conclusion:
There is an insufficiency in terms of the availability of jobs in the Philippines as deduced by the
emigrants.
4. The poverty incidence in the Philippines caused me to work abroad.

Percent
Agree 25 50.0 50.0 80.0
Valid Neutral 8 16.0 16.0 96.0
Disagree 2 4.0 4.0 100.0
Total 50 100.0 100.0

Frequency table 4.4
Out of 50 Filipino emigrants, only 4% disagreed that poverty in the Philippines
caused them to work abroad. 16% from them was neutral about. On the other hand, those
people who simply agreed
that poverty in the Philippines
is the main cause of their
departure to work abroad had
the half of the percentage and
those who strongly agreed
had 30%.
Histogram 4.4
One-Sample Test
Test Value = 50

Difference
Lower Upper
Q4 -427.036 49 .000 -48.020 -48.25 -47.79
Hypotheses:
Ha: The poverty incidence in the Philippines caused the emigrants to work abroad.
Ho: The poverty incidence in the Philippines did not cause the emigrants to work abroad.
Decision Rule:
Conclusion:
between the means (p < .05). Therefore, reject the null hypothesis and accept the alternative. The
poverty incidence in the Philippines caused the emigrants to work abroad.

5. The unemployment and underemployment status of the Philippines has been a
factor which prompted me to migrate.

Percent
Agree 14 28.0 28.0 60.0
Neutral 16 32.0 32.0 92.0

Valid
Disagree 3 6.0 6.0 98.0
Total 50 100.0 100.0

Frequency table 4.5
The graph shown how Filipino emigrants view unemployment and
underemployment status of the Philippines as a factor which prompted them to migrate. Out
of 50 respondents, 2% strongly
disagreed, 6% simply disagreed
and 32% was neutral about it.
However, 28% agreed and 32%
strongly agreed that
unemployment and
underemployment played a big
factor that prompted them to
migrate.
Histogram 4.5
One-Sample Test
Test Value = 50

Difference
Lower Upper
Q5 -332.495 49 .000 -47.840 -48.13 -47.55
Hypotheses:
Ha: The unemployment and underemployment status of the Philippines is a factor which prompted
the emigrants to work abroad.
Ho: The unemployment and underemployment status of the Philippines is not a factor which
prompted the emigrants to work abroad.
Decision Rule:
Conclusion:
unemployment and underemployment status of the Philippines is a factor which prompted the
emigrants to work abroad.

6. I see the incompetent economic policies of the Philippine government in terms of
job opportunities.

Percent
Agree 20 40.0 40.0 70.0
Valid Neutral 13 26.0 26.0 96.0
Disagree 2 4.0 4.0 100.0
Total 50 100.0 100.0

Frequency table 4.6
The graph shown if the Overseas Filipino Workers (OFW) see the incompetent
economic policies of the Philippine government in terms of job opportunities. Out of 50
respondents, 4% disagreed
and 26% was neutral about it.
However, 40% agreed and
30% strongly agreed that they
see the incompetent economic
policies of the Philippines in
terms of job opportunities.
Histogram 4.6
One-Sample Test
Test Value = 50

Difference
Lower Upper
Q6 -376.543 49 .000 -47.920 -48.18 -47.66
Hypotheses:
Ha: There are incompetent economic policies prompted by the government with regard to job
opportunities.
Ho: There are competent economic policies prompted by the government with regard to job
opportunities.
Decision Rule:
Conclusion:
There are incompetent economic policies prompted by the government with regard to job
opportunities.
7. The lack of government funding in the service sector is one of the reasons why I
went abroad.

Percent
Agree 12 24.0 24.0 60.0
Valid Neutral 15 30.0 30.0 90.0
Disagree 5 10.0 10.0 100.0
Total 50 100.0 100.0

Frequency table 4.7
The graph shows if the OFWs
agrees or not that the lack of
government funding in the service
sector is one of the reasons why
they went abroad. Out of 50
respondents, 10% disagreed and
30% was neutral about it.
However, 24% agreed and 36% of
them strongly agreed.
Histogram 4.7
One-Sample Test
Test Value = 50

Difference
Lower Upper
Q7 -318.065 49 .011 -47.820 -48.12 -47.52
Hypotheses:
Ha: The lack of government funding in the service sector is one of the reasons why emigrants
went abroad.
Ho: The lack of government funding in the service sector is not one of the reasons why emigrants
went abroad.
Decision Rule:
Conclusion:
lack of government funding in the service sector is one of the reasons why emigrants went abroad.
8. The wage I received abroad is higher than the average wage I received in the
Philippines.

Percent
Agree 10 20.0 20.0 90.0

Valid
Neutral 5 10.0 10.0 100.0
Total 50 100.0 100.0

Frequency table 4.8
The graph shown if the wage OFWs received abroad is higher than the average
wage they received in the
Philippines. Out of 50
respondents, 20% agreed and
70% strongly agreed which
means that the wage they
received abroad is definitely
higher than the average wage in
the Philippines. 10% was neutral
about it.
Histogram 4.8
One-Sample Test
Test Value = 50

Difference
Lower Upper
Q8 -451.664 49 .090 -48.560 -48.78 -48.34
Hypotheses:
Ha: The wage given abroad is higher than the average wage given in the Philippines.
Ho: The wage given abroad is lower than the average wage given in the Philippines.
Decision Rule:
Conclusion:
Since the Sig. 2-tailed value (p = 0.090) is greater than the p value, there is no significant effect
between the means (p < .05). Therefore, retain the null hypothesis and reject the alternative. The
wage given abroad is lower than the average wage given in the Philippines.
9. The quality of jobs offered overseas is better than those of the Philippines.

Percent
Agree 10 20.0 20.0 68.0
Valid Neutral 15 30.0 30.0 98.0
Disagree 1 2.0 2.0 100.0
Total 50 100.0 100.0

Frequency table 4.9
The graph shown the opinion of OFWs as to whether the quality of jobs offered
overseas is better than those in the
Philippines. Out of 50
respondents, only 2% disagreed
and 30% was just neutral about it.
However, 20% agreed and 48%
strongly agreed that the quality of
jobs offered overseas are better
than in the Philippines.
Histogram 4.9
One-Sample Test
Test Value = 50

Difference
Lower Upper
Q9 -393.385 49 .000 -48.160 -48.41 -47.91
Hypotheses:
Ha: The quality of jobs offered overseas is better than those of the Philippines.
Ho: The quality of jobs offered overseas is worse than those of the Philippines.
Decision Rule:
Conclusion:
quality of jobs offered overseas is worse than those of the Philippines as deduced by the
emigrants.
10. In terms of the cost of living, I would rather settle abroad than in the Philippines.

Percent
Agree 13 26.0 26.0 62.0
Neutral 12 24.0 24.0 86.0

Valid
Disagree 4 8.0 8.0 94.0
Total 50 100.0 100.0

Frequency table 4.10
Out of 50 respondents, 6% of them strongly disagreed and another 8% just simply
disagreed that they would
rather settle abroad in
terms of the cost of living.
24% from them was neutral
about it and 26% agreed
upon living abroad for the
better. The largest part
came from those people
who strongly agreed.
Histogram 4.10
One-Sample Test
Test Value = 50

Difference
Lower Upper
Q10 -283.545 49 .015 -47.660 -48.00 -47.32
Hypotheses:
Ha: Emigrants would rather settle abroad than in the Philippines in terms of the cost of living.
Ho: Emigrants would not rather settle abroad than in the Philippines in terms of the cost of living.
Decision Rule:
Conclusion:
Emigrants would rather settle abroad than in the Philippines in terms of the cost of living.
CHAPTER V
SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS
Summary
The study concerned the increasing rate of skilled labor migration and how the
macroeconomic status quo of Philippines does affect the prior.
For the formality of the paper, 50 Filipino emigrants (OFWs) were surveyed through a five-
point agreement scale. Nonetheless, as the respondents were purposively selected, researchers
still had to adhere with the statistics fixed by the National Statistics Office (NSO). The preceding
census involved common economic indicators, which are the following: the unemployment rate,
Philippine GDP growth rate, and the inflation rate. The ratios given ranged from year 2015 to the
first three quarters of 2017.
With the standardized values given on a Likert-scale format, the paper used both
descriptive and inferential statistics. The prior is done to analyze the personal accounts of the
respondents, namely, the span of ages, civil status, countries of emigration, and the common job
overseas. While the latter dealt more in testing the hypotheses per question.
In assessing whether the study is significant or not, one sample t-test is used as a
statistical treatment for the means. This is done in order to determine whether the null hypothesis
is ought to be rejected or retained. The latter determined the success of the research, and with
the concluding point, nine out of ten questions were significant to the study. Merely the 8th question
had retained its null, which will be discussed on the succeeding part.
In line with the objectives of the study, the following are the explicit factors that prompted
the national brain drain phenomenon: opportunities abroad, insufficiency of jobs in the country,
poverty incidences, unemployment and underemployment status, incompetent economic policies,

lack of government funding in the service sector, wages given abroad, quality of occupations
offered, and the overall cost of living.
Respondents’ degree of agreement with the aforementioned conformities are strictly
measured. As such, measures of variation are also determined, each questions are plotted
through histograms, and frequencies with cumulative percentage are indicated.
Summary of Findings
This study came up with the findings summarized as follows:
1. Evaluations of the Economic Status quo of Philippines in Terms of the Following
Indicators:
a. Philippine Unemployment Rate. With the extremes, it was highest from the first
quarter of 2017 and was lowest on the year end of 2016. The rate rose from 5.4%
last year up to the 5.6% of the third quarter of 2017.
b. Philippine GDP Growth Rate. The flow of Gross Domestic Product increased and
decreased alternately. Affecting the national economic status, it grows
approximately 6.5% annually.
c. Philippine Inflation Rate. The metric is aligned with the consumer prices for
tangible and intangible goods and utilities. As such, the highest rate was met on
September 2014, while the highest record for 2017 was set on April.
2. Evaluations of the Emigrants’ Personal Account Based on the Following Tabulations:
a. Range of Ages. Emigrants with the ages ranging from 35 to 44 years old got the
highest percentage, 40%. The rate was followed by the ages 25 to 34 (29%), and
the least (8%) was 55 to 64 years old. Hence, most of the OFWs are in the middle
age.
b. Scope of Civil Status. Most of the emigrants were married (51%). The next rate
were single emigrants (39%), and the least were either separated or divorced.
Thus, this scale proved that most of the OFWs have their domestic relationship—
families.
c. Countries of Emigration. United Arab Emirates is the top country where most of
the Filipino emigrants were found. As supported by the census of NSO, numerous
of Filipinos were working in the Middle East. The formal statistics was followed by
Saudi Arabia, United States of America, Australia, and Singapore.
d. Span of Job Overseas. The common job Filipino emigrants sought abroad were
white-collar jobs. Most OFWs, thereby, were professionals (45%). Next to the prior
were those of working in the industries (45%), and those of in the field of Service
and Sales (25%). The least were Technicians and Associate Professionals (12%),
and Managers (5%).
3. Respondents’ Evaluation of the Brain Drain Phenomenon in the Philippines:
a. Opportunities Abroad. 54% of the respondents strongly agreed that a better job
opportunity is offered overseas. Not only because of a higher income and salary,
working abroad has been a trend now since when it comes to one’s instincts, a
better opportunity is there when you are overseas.
b. Cal of Necessities. 46% of the respondents prefer to stay abroad to provide for
their families. Due to a higher salary, an emigrant will mostly likely be able to
provide more for their family.
c. Philippine Insufficiency of Jobs. On the graph that is provided, the data from the
survey strongly agreed that there is insufficiency when it comes to job availability
in the country. Each year many are eager to graduate from college with the hope
of finding a well-compensated job but unfortunately, less jobs and a decline on
work demand are being faced.

d. Philippine Poverty Incidences. Data simply shown that poverty is one of the main
cause for them to choose to work abroad. The country’s unstable economic
condition is the reason why it’s harder to attain significant progress. There are
certain discrimination to those who are uneducated.
e. Philippine Unemployment and Underemployment Status. The data shown that
unemployment and underemployment rate on the country leads them to migrate.
High unemployment rate and less job opportunities for new graduates are
unending problems in the country. With less available jobs and declining work
demand in the market, employees are lead to jobs that they did not worked for.
f. Philippine Incompetent Economic Policies. Due to the countries inept economic
strategy or plans, job opportunities have been affected. There has been a
longstanding lack of confidence in the government’s effort to secure a better future
for its citizens that many Filipinos have to make their own actions by seeking better
opportunities overseas.
g. Lack of Government Funding in the Service Sector. Insufficient funds from the
government lead people to choose working abroad. Lack of support from the
government entices others to go to countries that really works for their own.
Countries abroad are willing to have a job fair in this country than the Philippines
itself for its people that is why countries overseas have more Filipino workers for
their nation than ours.
h. Wages Given Abroad. It is very evident that the main reason why Filipino people
chose to work abroad is due to salary. Being employed abroad and doing the same
work that they do in the Philippines provide them double or more income and salary
than being employed in our own land.

i. Quality of Occupations Offered Abroad. Jobs offered in the country and
overseas varies. The world is very competitive that having a global experience will
give you a big career edge among other professionals
j. Overall Cost of Living. Settling abroad is more sustainable than the Philippines.
Due to the countries huge tax that the employees don’t know where it’s being put,
goods has been very pricey.
Conclusions
This study determined and quantified the pervasive culture of brain drain in the Philippines
and answers the questions regarding the statement of the problem. On the bases of the findings,
the researchers arrived at the following conclusions:
1. The following are numerous explicit factors that prompted the culture of brain drain in the
Philippines:
a. Better opportunities. It is a historic connotation that there are far more
opportunities career-wise in other countries mainly caused by the poverty in the
Philippines. Other countries have various jobs in different fields and industries
compared to the Philippines which is caused by its incompetent economic policies.
b. Greater salary. Countries abroad offer greater salary and higher minimum wage
even on the lowest or moderate type of job which is the greatest factor of OFWs in
working abroad.
c. Experience. The Filipinos seek for more experience regarding their career path
which can be most found outside of the Philippines and other countries
d. Relatives working abroad. There are Filipinos who are being taken or
encouraged by their family who are already working or living abroad to live with
them.
2. The status quo of the national economy affect the increasing rate of Filipino emigrants.
The said status quo are being measured by the formal indicators in economic rates of the
Philippines. These indicators are the following:
a. Unemployment Rate in the Philippines. The increasing unemployment rate and
underemployment status of the Philippines is a factor which prompted the
emigrants to work abroad.
b. Economic Growth in the Philippines per GDP. The growth in the Philippines per
GDP is inconsistent which increases in one quarter then decreases on the next
one.
c. Inflation Rate in the Philippines. There was an exponential growth in the cost of
food, transport, housing, electricity, utilities and even on health matters wich
means that inflation rate in the Philippines is consistently increasing.
3. How do the study interpret the reasons as to why the emigrants are prompted to settle
overseas rather than in their country of origin?
The apparent poverty incidence in the Philippines means that there is an
insufficiency in terms of the availability of jobs in the Philippines as deduced by the
emigrants. Eventually, poverty will result to incompetent economic policies prompted by
the government with regard to job opportunities. These incompetent economic policies
force emigrants to work abroad and working in other countries will provide them
knowledge about the better opportunities and cost of living abroad than in the Philippines.
Therefore, in this case, they tend to settle abroad to suffice the needs of their families than
in their own country.

Recommendations
Still based on the findings and conclusions of this study, the researchers humbly
recommends the following:
1. To the future researchers. Gather more information, statistics, researches and studies
regarding the Brain Drain in the Philippines. Also, accumulate more respondents and
experts that can state first-hand experiences and information and recommendations.
2. To the Philippine government. First, create more job opportunities for all the
unemployed Filipino which can be done by conducting more job hunting events and
gathering and encouraging more investors to invest in our country for it to create more
jobs. Second, strengthen the job security in the Philippines by making policies about
holistic personal and professional development plan for employees in their workplace. In
addition to job strengthening, the government should continue to abolish and eliminate the
prevalent contractualization among Filipino workers. Third, increase the minimum wage
of below average working Filipinos. Fourth, provide better education system for the future
Filipino workers and enhance and develop the technology in the Philippines. Fifth,
decongest the urban areas to add more jobs in the provinces and rural areas so that jobs
will be evenly spread out all throughout the country.

BIBLIOGRAPHY
Ang, D.A. (2008). Philippine International Migration: Cause and Consequences. Dalhousie
University, Canada.
An Explanation for Third World Poverty. (2012, March 02). Retrieved August 28, 2017,
from http://www.capitalismmagazine.com/2004/06/an-explanation-for-third-
world-poverty/.
AGRI SECTOR LOSS LEADS TO EMPLOYMENT DECLINE IN JANUARY 2017. (2017,
March 14). Retrieved August 28, 2017, from
http://www.neda.gov.ph/2017/03/14/agri-sector-loss-leads-to-employment-
decline-in-january-2017/
Battistella, G. et al., (2013). Youth Migration from the Philippines: Brain Drain and Brain
Waste. Makati City. UNICEF Philippines and SCALABRINI MIGRATION
CENTER.
Bello, W. (n.d.). Global Poverty Down, Philippine Poverty Remains High. Retrieved from
http://opinion.inquirer.net/54331/global-poverty-down-philippine- poverty-
remains-high
Brooks, R. (2002). Why is Unemployment High in the Philippines? IMF Working Papers,
02(23), 1. doi:10.5089/9781451844054.001
Commission on Filipino Overseas (CFO). (2012). Number of Registered Filipino
Emigrants by Major Occupational Group Prior to Migration.
Commission on Filipino Overseas (CFO). (2012). Statistical Profile of Registered Filipino
Emigrants.
Connolly, A. (n.d.). A Jobless Growth: Why is Unemployment Still High in the Philippines?
Retrieved August 28, 2017, from http://www.academia.edu
Department of Science and Technology - Science and Education Institute (DOST-SEI).
(2011). International Migration of Science and Technology Manpower. Manila
City: SEI-DOST.
Ilagan, F., et al. (2013). Is the Philippines Experiencing Brain Drain? Manila City: De La
Salle University.
Kacik. (2012, September 08). Was that it? Retrieved August 28, 2017, from
https://www.economist.com/blogs/freeexchange/2012/09/productivity-and-growth
Lister, J. (n.d.). What Is Productivity of Labor? Retrieved August 23, 2017, from
http://smallbusiness.chron.com/productivity-labor-17636.html.
Lowell, B.L. (2010). Some Developmental Effects of the International Migration of Highly
Skilled Persons. Geneva: International Labour Office.
Magallon, J. M. (2014). What Causes Unemployment in the Philippines. Scribd. Retrieved
from https://www.scribd.com/doc/72611153/What-Causes-Unemployment-in-the-
Philippines
Philippine Statistics Authority (PSA). (2017). Labor and Employment. Retrieved from
https://psa.gov.ph/statistics/survey/labor-force.
Sager, A. (2014). Critical Review of International Social and Political Philosophy:
Reframing the Brain Drain. USA: Portland State University.
Shinn, D. H. (2002, November 3). A Worldwide Problem. Retrieved from
http://chora.virtualave.net/brain-drain8.htm
SparkNotes Editors. (n.d.). SparkNote on Economic Growth. Retrieved August 27, 2017,
from http://www.sparknotes.com/economics/macro/growth.
Tsika, N. (2017, January 30). Nigeria’s ‘brain drain’. Retrieved from
http://africasacountry.com/2017/01/documenting-nigerias-brain-drain/
APPENDICES
A. Survey Questionnaire
To the respondents,
We, the researchers, are expected to seek the response of the Overseas Filipino Workers
(OFWs) in lieu of the thesis entitled, The Status of the Economy and its Effect on the Brain Drain
Phenomenon in the Philippines. Please spare a few minutes in answering the questionnaire with
sincerity. We assure you that everything stated in here will be kept confidential. Thank you!
Respectfully yours,
Michaela Marie P. Barcial Shanin Kyle C. Manuel Dana Nacino
Name (optional): _____________________________________ Age: _________________

Job abroad: ______________________ Country of emigration: _________________
Civil status: ______________________ Salary abroad (optional): _________________
I. Brain Drain Phenomenon in the Philippines
DIRECTION: Rate yourself on the given statements and put a check ( ⁄ ) on the
following scales that apply.
5 4 3 2 1
QUESTIONS Strongly Disagree Neutral Agree Strongly
Disagree Agree
1. I get better opportunities abroad

than in my own country.
2. I tend to settle abroad to suffice

my daily necessities and the
needs of my family.
3. There is an insufficiency in terms

of the availability of jobs in the
Philippines.
4. The poverty incidence in the
Philippines caused me to work
abroad.
5. The unemployment and

underemployment status of the
Philippines has been a factor
which prompted me to migrate.
6. I see the incompetent economic
policies of the Philippine
government in terms of job
opportunities.
7. The lack of government funding
in the service sector is one of the
reasons why I went abroad.
8. The wage I received abroad is

higher than the average wage I
received in the Philippines.
9. The quality of jobs offered

overseas is better than those of
the Philippines.
10. In terms of the cost of living, I

would rather settle abroad than
in the Philippines.
II. Recommendation
11. Why did you choose working abroad rather than working in the Philippines?
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
12. Given your situation as an Overseas Filipino Worker, what actions or policies
would you suggest to the Philippine government to lessen the rate of migration?
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
B. Tally Table
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10
1 2 1 2 2 2 2 1 1 1 1
2 1 1 1 1 1 1 1 1 1 1
3 1 3 1 1 3 2 3 2 3 3
4 2 3 2 3 2 3 3 1 2 3
5 1 1 1 1 1 1 1 1 1 1
6 1 3 3 3 4 4 4 1 3 4
7 1 3 1 1 3 2 3 1 1 1
8 1 1 1 1 1 1 1 1 1 2
9 1 1 1 1 1 3 1 1 1 1
10 1 3 2 2 3 3 3 1 1 3
11 1 2 2 2 2 1 1 1 1 2
12 1 1 1 1 1 1 1 1 1 1
13 2 2 3 4 3 2 4 1 2 2
14 2 2 4 2 2 3 3 2 2 2
15 1 1 1 1 1 1 1 1 1 1
16 1 1 2 1 1 2 1 1 2 2
17 2 2 2 1 2 2 2 1 2 3
18 1 1 3 2 1 2 1 1 1 1
19 3 3 3 3 3 3 3 3 3 3
20 2 4 2 3 1 2 2 1 1 2
21 2 2 2 2 2 2 2 2 2 2
22 3 3 3 3 3 3 3 2 3 3
23 1 1 1 1 1 1 1 1 1 1
24 1 1 1 1 1 1 1 1 1 1
25 1 2 1 2 1 1 1 1 2 3
26 3 2 3 3 2 2 3 1 3 3
27 1 1 4 1 3 3 2 1 3 4
28 2 3 2 3 4 4 3 2 4 4
29 2 2 2 2 3 2 2 1 3 2
30 1 5 2 2 5 2 4 1 2 5
31 1 1 5 2 3 1 3 1 3 3
32 2 1 2 2 3 2 2 2 1 2
33 1 5 1 4 3 1 1 1 1 1
34 1 4 1 2 1 1 1 1 1 1
35 1 1 2 2 2 3 3 1 3 2
36 1 1 1 2 3 3 2 1 1 5
37 2 1 3 2 2 3 3 1 1 5
38 1 2 1 2 4 2 4 3 3 4
39 2 1 1 1 2 3 2 1 3 1
40 2 2 2 3 3 3 4 1 1 3
41 2 2 2 2 2 2 2 2 2 2
42 2 2 2 2 2 2 3 3 2 2
43 2 2 3 2 2 2 3 2 3 3
44 1 2 1 3 1 4 1 1 2 4
45 2 2 2 2 1 2 1 1 2 3
46 1 3 3 2 2 3 2 1 2 2
47 2 1 2 2 3 2 3 2 1 1
48 2 2 2 2 3 1 4 3 2 1
49 2 2 2 2 2 1 2 3 1 3
50 1 2 1 2 1 1 1 4 2 2

The Status of The Economy and Its Effect On The Brain Drain Phenomenon in The Philippines

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

The Status of The Economy and Its Effect On The Brain Drain Phenomenon in The Philippines

Hochgeladen von

Copyright:

Verfügbare Formate

THE STATUS OF THE ECONOMY AND ITS EFFECT ON THE BRAIN DRAIN

PHENOMENON IN THE PHILIPPINES

Barcial, Michaela Marie P.,

Manuel, Shanin Kyle C.,

and Nacino, Dana Klarisse E.

XII - St. Maria Goretti

of the Requirements for Research II

Mr. Carlo Roque

November 07, 2017

CHAPTER I THE PROBLEM AND ITS BACKGROUND

BACKGROUND OF THE STUDY

professional workers, such as engineers, physicians, scientists, teachers, and mechanical

countries of origin, international integration of market systems, and wide innovation in

Confederation of the Philippines, 2016).

the field of national macroeconomics. In accordance to the metrics of an independent research

brain drain can be probably minimized.

explanatory framework having the macroeconomic impacts of brain drain as an operational

definition in line with further assessment of the concept.

Having the aforementioned claims, researchers supposed that there is a continuous

Input Throughput Output

Figure 1 depicted the cause-and-effect paradigm, researchers proposed to utilize by the

STATEMENT OF THE PROBLEM

overseas rather than in their country of origin?

SCOPE AND LIMITATIONS OF THE STUDY

consequences, will be measured once—as to compare with an experimental approach, which is

trying to measure subjects in a before-and-after basis.

conditions of the aforementioned variables. A cause-effect relationship will be ascertained

will be the dependent.

furthermore supported by original statistical measures through the use of survey-questionnaires.

negative differences between the transitions of years.

objective of the research, researchers are ought to be open to any amendments.

as a developing country, toward a more industrialized nation.

establish the cause-effect relationship between alleged variables.

Emigration is a technical translation of brain drain delineating the mass departure of

the research paradigm.

Macroeconomics is a general concept under economics; it is used as a metric to assess

the impact of brain drain in the national setting.

Migration is synonymous to emigration, only it differs in terms of the scope of mass

departure as it is held generally.

Unemployment concerns the insufficiency of job opportunities in Philippine setting, which

considerably is one of the main factors for having brain drain.

Quasi-experimental is another translation for a causal-comparative research that often

differs from the metrics of a true experiment.

Regression is a metric, researchers used, to determine the diminishing advancement in

terms of Philippines’ economic status quo.

REVIEW OF RELATED LITERATURE

theoretical analysis of the research.

Streaks of Brain Drain

enhance their very little resources (Tsika, 2017).

Poverty Incidence in Developing Countries

in developing countries, poverty incidences may be a contributing factor to the economic

To further develop the prior statements, refer to the following:

shows that it also has an impact on life expectancy and families.

recovery in the labor market.

National Labor Productivity

savings, new technology and human capital (Lister, n.d.).

Sources from Philippine Statistics Authority

Poverty Incidence in the Philippines

lost livelihoods and income result in deeper levels of indebtedness.

Unemployment in the Philippines

education, inflation, consumption, and Gross Domestic Product (GDP) growth on

consumption is associated with a decrease in unemployment. However, the findings suggest