Study On The Overseas Filipino Worker: A General Profile by Shirley Marie B. Cosalan
Study On The Overseas Filipino Worker: A General Profile by Shirley Marie B. Cosalan
Study On The Overseas Filipino Worker: A General Profile by Shirley Marie B. Cosalan
By
THESIS
Submitted to
KDI School of Public Policy and Management
in partial fulfillment of the requirements
for the degree of
2010
STUDY ON THE OVERSEAS FILIPINO WORKER: A GENERAL PROFILE
By
THESIS
Submitted to
KDI School of Public Policy and Management
in partial fulfillment of the requirements
for the degree of
2010
By
i
TABLE OF CONTENTS
Population Growth
Consequences of Migration
Concerns of Migration
III. CONCLUSION/RECOMMENDATION…………………………………...29
V. REFERENCES………………………………………………………………..38
ii
LIST OF TABLES
iii
LIST OF FIGURES
iv
CHAPTER 1
This study discusses a profile of Filipino migrant workers and a descriptive analysis of the
causes of, consequences and concerns about international labor migration using data from
various government agencies as well as findings from related studies. The study of the
Overseas Filipino Worker (OFW) is of relevance due to their growing number which is about
10% of the country’s total population and the social and economic effects this has brought to
the Philippines. Further, a survey among OFWs in South Korea is particularly interesting in
the sense that the current Employment Permit System (EPS) being implemented between
both governments of South Korea and the Philippines is considered one of the more favorable
arrangements struck by the Philippines with its partnering labor host countries.
Researchers divide the history of Filipino migration into waves, each possessing a
distinct character from the others. The First Wave of labor migration was in 1900’s, when
thousands fled due to poverty brought about by the Philippine-American war to work in
Hawaiian plantations. By 1934, there were about 120,000 Filipino workers employed in
Hawaiian plantations. The First Wave was characterized by migration to the US with the
option to stay there for good or to return to the country. The Second Wave is characterized
US. Migration was primarily induced by the desire to “look for greener pastures”. By 1975,
more than 250,000 Filipinos have migrated to the US. The economic boom brought about by
the dramatic increase in oil prices enabled oil-rich countries in the Middle East to pursue
development projects for their countries. Scarce of manpower, the Middle East turned to the
Philippines as a source of labor in the 70’s. The Philippines, in turn, was more than willing
1
to grab this employment opportunity, ushering the Third Wave of labor migration. Labor
between the worker and the foreign employer. Different from the other waves, the Third
Wave saw the geometrical growth in the number of labor migrants. Seeing the high potential
to increase the country’s dollar revenues, the Marcos Administration pursued a policy of
encouraging deployment. During his term, the late President Marcos set-up several offices
under the Department of Labor and Employment (DOLE) to regulate overseas employment.
During the term of President Aquino, a more vigorous marketing strategy for Filipino
Overseas employment was pursued. Working abroad was made more accessible. Marketing
missions were sent abroad to look for more employers of Filipino labor. The target then was
Reports of abuses and the consequent public outrage on the exploitation of Filipino workers
abroad made the Ramos Administration to rethink its policies on overseas employment. The
concern for protection became more apparent. Bans were imposed and laws were passed
with the objective to providing more protection for the worker. President Ramos issued a
statement on May 1, 1995 saying “It is not the policy of my administration to export workers
to foreign lands.” However, deployment in large numbers still continued. With this, the
Medium-Term Development Plan for 1993-1998 provided as a policy and strategy for
program as an alternative source of employment opportunities, provided that this does not
result in an undue drain in scientific/technical expertise and locally needed and middle-level
skills. The program should be strengthened through adequate strategies to ensure the dignity
2
and welfare of workers and their families.” President Ramos also reiterated that working
President Estrada simply upheld the policies of his predecessor. However, a more
aggressive move for overseas jobs has been adopted under president Arroyo’s administration
targeting one million overseas jobs every year. In 2006, a total of 1,062,567 Filipinos have
been deployed abroad, hitting that target of the current administration of deploying 1 million
Filipino workers for jobs abroad. This figure is expected to continue increasing despite the
Overseas Filipino workers or OFWs are Filipinos who are employed in foreign countries.
They travel abroad to seek better opportunities in order to provide for the needs of their
families in the Philippines. They are also known as “Overseas Contract Workers”(OCWs),
since they work abroad through a contract with their employers. The term OFWs was
officially adopted under the President Fidel Ramos administration to give recognition to
millions of Filipinos who sacrifice by working in other countries. The change, replacing
‘Contract’ with ‘Filipino’ – honors these Filipino workers by pledging the Philippine
government’s commitment to their welfare wherever they may be, and removing the pre-
condition of possession of contract in order for Philippine consulates to come to their aid,
under the Migrant Workers and Overseas Filipinos Act of 1995 (Republic Act 8042).
There are two kinds of overseas Filipino workers, those who leave the country for temporary
or contractual work and those who settle permanently in the country of destination. The term
Overseas Filipino Workers refer to temporary migrant workers who are classified as either
Although a large number of Filipinos abroad are permanent emigrants (most of them
settling in the Americas), majority of them are OFWs or temporary workers (Table 1).
3
Table 1: Filipino Emigrants and Temporary Workers
(2006-2007)
Further, jobs of the OFWs have also been categorized as either land-based or sea-based.
The occupations of land-based workers cover almost all skill areas from service workers like
cooks, domestic helpers or factory workers to administrative and executive workers. Sea-
based work involves ship operations although a variety of occupations can be found in large
(POEA) reports that of the 1,062,567 workers deployed in 2007, 75.26% were land-based
Figure 1 shows an overview of the fast growth of land-based and sea-based OFWs from 1974
when the government under President Marcos initiated its labor-export policy to be able to
cope with the financial crisis, to 2006. Almost half of them have college degrees. Through
the years, there was a notably shift from labor export of professionals such as nurses and
engineers to caregivers, domestic helpers, factory workers and construction workers. A shift
in the international demand for Philippine labor took place in the 1980s, indicated by a
decline in the number of workers in production processes and an increase in the demand for
4
service workers. In the Philippines, this led to more women going abroad, mainly to work as
Note:
Type 1 includes professional, technical, and related workers (as well as entertainers).
Type 2 includes managerial, executive, and administrative workers; sales workers; and
agricultural, husbandry, and forestry workers, and fishermen.
Type 3 includes clerical workers.
Type 4 includes service workers.
Type 5 includes production process workers, transport equipment operators, and laborers.
Source: Philippine Statistical Yearbooks, various years as cited in Neil G. Ruiz, "Made for
Export: Labor
Migration, State Power, and Higher Education in a Developing Society," Ph.D. dissertation,
Massachusetts,Institute of Technology, 2007.
It is also observed that deployment has steadily increased through the years except in 1995
5
Table 3: Deployment of temporary contract workers
(1989-2007)
Land-based Sea-based
Year Total
Workers workers
1989 355,346 103,280 458,626
1990 334,883 111,212 446,095
1991 489,260 125,759 615,019
1992 549,655 136,806 686,461
1993 550,872 145,758 696,630
1994 564,031 154,376 718,407
1995 488,173 165,401 653,574
1996 484,653 175,469 660,122
1997 559,227 188,469 747,696
1998 638,343 193,300 831,643
1999 640,331 196,689 837,020
2000 643,304 198,324 841,628
2001r 662,648 204,951 867,599
2002 682,315 209,593 891,908
2003 651,938 216,031 867,969
2004 704,586 229,002 933,588
2005 740,632 247,983 988,615
2006 788,070 274,497 1,062,567
2007 811,070 266,553 1,077,623
Source: Philippine Overseas Employment Administration (2008)
This sudden drop was caused by the policies of the Ramos administration where
stricter regulations have been formulated and implemented in ensuring the welfare of the
workers. Such an action came about due to grievances that have been aired by a significant
number of OFWs regarding problems of maltreatment, terrible working and living conditions,
lower pay being received by them in contrast to what has been stated in their work contracts,
passports being illegally held by employers and even increasing cases of unexplained deaths
6
Table 4: Number of Welfare Cases, January to September
(1994)
Nature Total Male Female Female/M
ale ratio
Overall (number) 9,368 3,021 6,347 2.1
Overall (percent) 100% 32% 68%
Maltreatment 1,419 546 873 1.6
Delayed or non-payment of 1,272 565 707 1.2
salaries
Contract violations 1,373 691 682 0.9
Physical abuse 187 6 181 30.0
Rape and sexual abuse 15 0 15 N/a
Sexual harassment 330 0 330 N/a
Health problems 42 13 29 2.2
Mental Illness 6 0 6 N/a
Other 3,769 694 3,075 4.4
Source: Overseas Welfare Administration, as cited in “Filipino Women Migrants: A
Statistical Factbook,” National Commission on the Role of Filipino Women and the Asian
Development Bank.
In Asia, the favorite OFW destinations were Hongkong and Taiwan where Korea has
7
Italy is also a favored country destination by the OFWs in the European region. In the past,
Japan was a top favorite destination in Asia. Noticeably though, it has not been listed in the
recent years. This must be due to the strict entry policies and a more rigid crackdown on
illegal workers.
Although the Middle East remains to be the top country of destination, the USA, was
consistently the main source of remittances (Table 6). In 2007, US$ 8,244,349,000 were
Remittances were sent through formal channels such as banks and non-formal
channels such as the door-to-door system (Table 7). The data shows that OFWs prefer to
Table 8 shows that male workers remit more than female workers. For male workers,
the overall average remittance in 2007 was 96,000 pesos while that for females was 51,000
pesos.
8
1/
Refers to cash remittances coursed through the formal financial channels, including
commercial banks, thrift banks, foreign exchange corporations, and offshore banking units.
2/
Refers to cash remittances coursed through formal and informal channels.
Source: Bangko Sentral ng Pilipinas (2008)
Table 8: Total remittances and average remittances per year 2003 to 2007 Survey on
Overseas Filipinos
Female
No. of OFWs 857 764 660 439 402
(in 1,000)
Total remittances 35,648 35,901 30,684 22,553 24,019
(in million pesos)
Average remittance 51 57 58 51 59
(in thousand pesos)
Details may not add up due to rounding off.
Source: National Statistics Office–Survey on Overseas Filipinos (various years)
With regard to the geographic distribution of OFWs, the latest data showed that
overseas workers came disproportionately from the National Capital Region and the Southern
Tagalog Region which are adjacent to Metro Manila, the center of recruitment activities
(Table 9). The Ilocos Region, which is a “traditional” migrant sending region due to the
Ilocanos recognized as first official overseas workers, has remained to be on the top five
9
1.3 Causes of International Migration
pull factors like demand for expatriate labor arising from the oil boom in the Gulf region;
supply-push factors such as demographic transition; and network of friends and relatives
already settled in destination countries who serve as sources of information and anchor
communities for newcomers. Migration is also influenced by the dynamic interplay of socio-
economic, political and historical factors and globalization. These emphasize global trade,
economic expansion and the forging of economic links between nations, as well as the close
relationships between flows of people, and capital, commodities and technology (Martin,
In Asia, a factor causing the expansion of labor mobility is the widening disparity
among groups of Asian countries. Labor sending countries are characterized by high rates of
population and labor force growth (e.g. Pakistan, Bangladesh, and Philippines), whereas labor
receiving countries have undergone demographic transition and are experiencing serious
The Philippines is one of the largest suppliers of a variety of workers for overseas
employment. The economy deploys professionals and technical worker including doctors,
engineers, nurses, teachers, and IT specialists all over the world. On the other hand, semi-
skilled workers are also deployed including technicians, production workers, caregivers,
opportunities as well as the higher compensation package abroad exert a pull on many of
Most Filipinos go abroad with the hope of getting ahead economically and socially.
Several studies have identified the factors contributing to the overseas exodus of Filipino
workers. Among these factors are: rapid population growth, geographic distribution in urban
10
areas, unemployment and underemployment, uneven development among regions in the
country, labor oversupply, sparse and depressed industrialization, social class reasons,
inflation, income disparity and international wage disparities (Go, 1996; Madigan and
In this section, the primary causes of Filipino migration that will be discussed will be
limited to unemployment and underemployment, high population growth rate, and low
“The number of unemployed people in the globe has now reached a record-high of
more than 200 million, compared to 150 million 12 years ago. Underemployment, now
reaches more than 1.5 billion even as the global crisis threatens to slash more livelihood from
There is a strong push from developing countries to further liberalize the labour
market for many beneficial economic reasons. Vietnam Prime Minister Pham Van Khai said
that “Sending laborers to work abroad is one of Vietnam's major efforts to settle issues of
employment, especially for young people,” It is young, largely unskilled laborers that the
government is targeting for export. Joblessness is becoming an increasing concern for this
country of 77 million people. MOLISA says that unemployment rose to 7.4 percent last year,
11
Table 10: Labor Force for Selected Years
In Table 10, unemployment rate of the Philippines was at its lowest in 1975 with
3.9%. This was the year after the implementation of the 1974 Labor Code under President
Marcos’ administration. However, the unemployment rate reached its peak at 11.1% after ten
years in 1985. As of 2006, this remained to be the highest unemployment rate so far since
1960. The double-digit unemployment rate again came about only in 2000, after the Asian
financial crisis in 1997. Latest data show that unemployment rate in 2006 is at 7.3%.
The country’s labor force is also highly underutilized. Employed persons who express the
desire to have additional hours of work in their present job or to have additional job, or to
have a new job with longer work hours are considered underemployed. Although the
underemployment rate as of July 2009 is lower at 19.8% compared to that of July 2008 at
21%, the rate remains high; that is, one out of five employed workers is underemployed
(Table 11).
12
Table 11: Results from July 2009 Labor Force Survey (LFS)
Since the domestic economy cannot absorb the increasing number of new entrants to
the labor force, this created a large amount of surplus labor. Some of these unemployed and
underemployed workers join the large number of Filipinos who search for jobs abroad. This
also explains why even professionals and college degree holders such as nurses and teachers
Most international migrants in Asia are motivated by the prospect of earning higher
wages overseas (Smart et al. 1986). As long as potential foreign earnings exceed local wages
(after subtracting costs of movement and job placement), workers are likely to respond to
higher foreign wage rates by engaging in labour migration to one of the region’s core
contribute to the widening income gap between the rich and the poor. The Philippines has
one of the worst income disparity records in Asia where the rich are very rich and the poor
are very poor. According to a World Bank report in 1998, there was a significant increase in
income inequality in the mid-1990’s with the Gini coefficient increasing from 0.45 to 0.5 in
inequality in three years. The factors underlying these increases are: first, the incomes of the
richest ten percent of the population grew faster than the incomes of the rest of the
population; second, “core” poverty in rural areas appear to have been largely untouched (six
13
rural regions accounted for about 60% or rural poverty in 1991); and third, urban-rural
differences in standard of living have widened. In the Philippines, it is estimated that the
richest families control 30% of GNP (Gonzalez, 1998). The old landed elite (Spanish and
mestizo families) has both political and economic power while the Filipino-Chinese control
about 30% of the top 50 corporations in the country although they make up only about 1% of
the population. Most of the Filipinos therefore, are motivated to go abroad with the hope of
The population of the Philippines is one of the highest in Southeast Asia and is projected to
consistently remain among the bracket of having the highest population rate for a long time.
(Table 12 and Table 14). At present, the Philippine population stands at 88 million and is
projected to grow to 94 million in 2010 (Table 13). The current population growth rate is
2.04% which is relatively high considering the labor absorptive capacity of the economy.
From 1995 to 2000, the Philippine population grew at an annual rate of 2.36% which
was reduced to 2.04% from 2000 to 2007 due mainly to serious government-sponsored birth
control and responsible parenthood programs. However, the opposition of the Catholic
Church, the lack of political will and cultural factors have hindered successful
14
Table 12: Population Census
This frame on POPCEN 2007 versus projections shows that 2007 actual population count and
2007 PGR are close to the projected estimates. 2007 Population Projection count at the
national level is lower than the projected estimate (medium assumption) by a few hundreds.
11 of 17 regions reported lower count in the 2007 POPCEN than the projected estimates and
the difference is a few hundreds except ARMM.
Source: Commission on Population
15
Table 13: Summary of Population Projections by Year
2008-2010
Since the 2007 POPCEN results show proximity to the projected population estimates,
medium assumption, POPCOM has prepared population projections in single year interval for
the period 2008-2015.
This summary of population projections are lifted from the 2000 Census-based Population
Projections prepared by NSO and approved by NSCB Resolution No. 7 on February 8, 2006
for use in planning and programming purposes.
16
With regard to regional distribution, about 19 million or 22% of the total population is
concentrated in the National Capital Region (NCR) and the provinces near Metro Manila
(Regions 3 and 4). Many Filipinos have been flocking urban areas particularly the NCR in
search for job opportunities but this has worsened the employment situation and has
environmental concerns, inadequate health services and the presence of squatters and slum
areas. According to the World Bank, the absolute size of annual increase in the Philippine
population and the labor force will remain very large for a long time and the poor capacity of
underdevelopment in which poverty is both cause and effect, through employment and
foreign exchange earnings. Increased employment leads to greater income, which generate
higher savings for investments whereas increased foreign exchange earnings lead to better
access to investment funds and assets for capital expenditures and thus more employment
migration has been substantial. However, overseas contract migration and emigration may
not be enough to curb high unemployment rates. Nonetheless, without contract migration,
On the other hand, high unemployment figures indicate that labor shortages will not
be a problem even if the present rate of contract migration increases, except maybe for highly
specialized and professional occupations that are lacking in the country. However, the
recruitment process for migrations is highly selective of workers who are younger, better
17
educated, more experienced and highly skilled. Some studies reveal that majority of migrant
1.4.2 Remittances
Remittances contribute largely to the country’s foreign exchange. In 2008, the total
remittances reported was US$ 16.4 Billion which was an increase of 13.7% from the previous
year. These amounts are underestimated considering that many workers remit through
unofficial channels.
Foreign exchange earnings from overseas contract workers have contributed greatly in
the balance of payments of the country and have helped to cushion the impact of deficits in
the trade balance. This is not to mention the already obvious increase in family income
bringing about increased social status in the community and greater educational and health
workers move from lower to higher technology levels. Further, emigration is believed to
positively influence education through teachers and other educators who have studied abroad.
However, in the Philippines, many workers are actually being de-skilled. Highly educated
OFWs increasingly seek long term contracts and extension, returning to the Philippines only
for retirement. Many Filipino professionals who migrated to the USA, Australia and Canada
charged by agencies and other individuals who act as brokers for foreign employers are just
some of the problems that beset migrant workers. This is aside from the homesickness,
18
broken families, and many other social problems that come about from absence of guidance
from parents.
19
CHAPTER 2 : FILIPINO WORKERS IN SOUTH KOREA
This survey was conducted with the aim of assessing the economic and social
situation of Filipino workers in Korea. Although there are some research papers on Filipino
migrants in Korea, very few studies and surveys of the so-called undocumented workers have
been undertaken. The initial target respondents of this survey were illegal workers living at
the countryside. However, the pilot area was later expanded to include workers with visas
including those with spouses of Korean nationals. This survey questionnaire (Appendix A)
was floated to respondents in late 2006 to January of 2007 while the researcher was about to
finish her academic classes and has even used the same collected data in a couple of school
case studies. An in-depth interview of key informants was also done to verify some of the
information and data gathered. Not included in the survey were those who live far from the
main residential areas and those not personally known by the contact persons.
Because of the small sample size of this survey relative to the total number of Filipino
workers, general conclusions cannot be drawn from the results. However, the findings may
serve as input for future studies and may be useful to government and non-government
organizations responsible in implementing policies and programs for the welfare of Filipino
workers in Korea.
There are two groups of respondents in this study; the legal workers and the illegal
workers. The main difference between the two groups lies in the validity of their visas while
working abroad. Legal workers are those who hold a proper working visa or have valid status
of residence. The illegal workers are those who do not have the proper visa or status of
20
2.2 Areas Covered by the Survey Questionnaire
A. Demographic Characteristics
1. Age
2. Civil Status
3. Gender
4. Education
5. Household Size
6. Distribution by Region
1. Occupation in Korea
21
6. Work Problems
E. Economic Benefits
1. Remittances
2. Skill Acquisition
F. Others
Most of the migrant workers in this survey are young and of prime working age. It is
relevant to note that all respondents are beyond the age of 21 years which is generally the age
when a person obtains a college degree in the Philippines. Further, a college degree holder is
more likely to land a white-collared job as against one who holds a blue-collared job. In a
way, this situation supports other similar studies that many OFWs are professionals. With
regard to marital status, more than half (61%) of the respondents were married (Table 15).
years of age. This means that almost all male workers are at their productive years.
The average family size in the Philippines is 5.1 according to estimates by the National
Statistics office.
22
Table 16: Matrix of Respondents Household Size/Position
Total # of Household Size(people) Household Position
OFW 1-5 5-up Head Spouse Child
28 25 3 9 10 9
In this survey, 89% of the respondents have a household size falling under the 1-5 size
bracket. (Table 16) Extended families are still common in the Philippines especially in the
rural areas where children continue to live with their parents even after marriage.
3. Educational Attainment
Generally, Filipino overseas workers are highly educated. Many Filipino domestic
helpers in Hongkong and Singapore have college degrees and are generally better educated
characteristics of different national-origin groups of migrants in the USA in 1980 showed that
36.5% of migrants in the Philippines had a schooling of 16 years or more, which is higher
than immigrants from the United Kingdom, Korea, Canada and Mexico (Borjas, 1990).
migration are seen as vehicles for getting ahead economically and socially. Past studies on
migration have shown that remittances have been spent primarily on basic necessities and
education.
In table 17, more than half (54%) of the respondents were college graduates, 29%
have finished vocational courses, while 17% were high school graduates. It has been learned
that some of these workers are teachers or accountants, while others were working as drivers,
23
However, due to economic constraints such as low salaries, these employed workers
still decide on finding jobs in Korea. Also, the decision to leave the country is said to be a
personal decision by the majority of the respondents although some of them say that their
families are aware and have been consulted of their choices to work in Korea.
A survey by the Overseas Filipinos by the NSO showed that most migrants come
from the National Capital Region (NCR), Regions 3 and 4. The urban provinces of Regions
3 and 4 are located near the capital, Metro Manila, which is the center of recruitment
activities. Interestingly, all three regions are high-income regions in the Philippines, which
also have high unemployment rates. The movement from rural to urban areas have
contributed to the high unemployment rates in Metro Manila and the surrounding areas.
Consequently, workers who cannot find jobs in the cities leave for work overseas.
The highest proportion of respondents to this survey however, come from the
Philippine highlands. Compared to the main source regions cited above, the CAR has a
relatively low unemployment rate although many farmers are underemployed because of low
productivity in agriculture. The Cordillera, however, is one of the high-income regions in the
country.
24
6. Entry Visa and Status of Residence
The survey shows that all workers (100%) entered Korea legally either as tourists or
with trainee visas under the Employment Permit System (EPS). Only one of the respondents
However, the current status of residence of almost half of the respondents (46%) is
illegal since most of the respondents overstayed their visas. Since majority of the
respondents came as trainees and worked as factory workers, they were allowed a maximum
of three years in accordance with the Korean government’s directive on hiring Filipino
workers. Probably because of fear of not being re-hired, most of these trainees end up
overstaying their visas or find other employers prior to the expiration of their visas. Some of
the respondents however claim that they have been victims of abuse by their employers such
as withholding their passports and other documents so when they are exploited and
eventually decide to ran away from their employers, they end up without their legal
documents.
There is a high turnover rate among the respondents especially the illegal workers
since all of them have changed employers at least more than three times during their tenure.
Obviously, this may have been because of their illegal status. Only 3 or 11% of the total
respondents have stayed in their jobs as stated in their contracts. Of the 15 legal workers,
about 87% have also changed employers for at least three times. Work related problems such
as low salary, overtime work and long working hours, racial discrimination, and bad
25
relationship with co-workers were common reasons among the legal workers to change their
employers. Illegal workers encounter problems such as delayed or unpaid salaries, terrible
working and/or living conditions, overtime work and long working hours.
8. Remittances
All the respondents said that they send remittances to their families regularly, the
largest portion of which is for family support or the purchase of basic necessities.
Remittances are also intended for savings, education of children or siblings, for the purchase
Results of the survey showed that the workers send remittances from 50% to 80% of their
total monthly salaries. Apparently, males send money in larger proportions compared to the
females. One reason for this may be due to the Filipino custom of men being responsible for
Filipinos are family-centered and children who are economically well-off can be
depended on by their parents to help augment the family income or finance the schooling of
their siblings. In the case of the survey respondents, some of them even said during the
interviews that they are married with families of their own and yet remit to their parents as
well since they are the eldest child. Traditionally, the eldest child or elder children who are
better educated and economically better off are responsible for helping parents in educating
their younger siblings. Since most of the migrant workers come from big families with low
incomes, it is understandable that they feel obliged and responsible in supporting their
families in the Philippines and in helping other family members come to Korea. The value of
“utang na loob” or reciprocal obligation is not limited to kinship relationships but pervades
Filipino society (Schlegel, 1964). As pointed out by Kaut (1961 in Trager, 1988), “Life is an
unsolicited gift and thus the basis of a debt which cannot be repaid. Parents expect that their
26
The most common method of remittance is through the bank. Although some workers
send money through the post office, through friends, or through other informal channels.
9. Skill Acquisition
Several respondents feel that their educational background and work experience in the
Korea has provided the opportunity for some to undergo Korean Language lessons and for
others, learn skills on how to operate machines or do some embroidery craft while being on
the job. Initially however, the workers had difficulties adjusting because of the language
When asked if they acquired new skills from their employment in Korea, 68% of the
workers responded positively although the other 32% feel that they have not learned any
useful or relevant skill from their jobs. Some of the skills that the workers have acquired in
Korea are: carpentry, machine equipment operation, language skills, steelworks and welding,
packaging, and embroidery. Although these are common in the Philippines, the respondents
claim that these are new skills learned from their jobs because most of the respondents do not
have experiences related to their jobs in Korea. Most of the workers have differing
educational backgrounds from their jobs in Korea. This is where mismatch between jobs and
Despite all the problems that the migrants encountered at work, 96% of the
respondents still believe that their life in Korea is generally good because of high salary, the
country’s convenient transportation system, good services, the presence of family and friends.
Only one respondent answered negative since she feels homesick even if already married to a
Korean national.
27
11. Awareness and Availment of Government/NGO Programs
organization (NGO) programs and projects for overseas workers but only 7% claim to have
availed of these programs. Some either claim the lack of time away from work to be able to
avail of government projects or programs for the OFWs or plainly because they prefer to
work and be paid than take a day-off from work to avail of the programs. Understandably, for
the illegal workers, they may have been hesitant to seek assistance because of their status.
12.Monthly Wage:
The amount of remittances is related to monthly wage. Workers who receive higher wages
are expected to send more remittances to the Philippines. The survey results show that most
workers send from 70% to 80% of their monthly wages to their families back home. Also,
household positions somehow influence the degree of responsibility and the likelihood of
remittance. For instance, a head of the family is more likely to remit bulk of his wages to his
family for financial support as compared to an unmarried worker who may or may not remit
back home.
28
CHAPTER III: CONCLUSION/RECOMMENDATIONS
The primary causes of migration discussed in the paper are unemployment and
Employment promotion is one of the economic benefits of migration. Data gathered from
various sources showed that employment generation from overseas contract work has been
earnings and balance of payments of the country. Migrant workers remittances as reported
are being underestimated because many workers send remittances through informal channels
although this survey shows that remittances are being coursed through formal channels such
as the banks by the majority of the respondents. Remittances have also improved the
economic and social standing of recipient households. However, studies have not shown
significant skills upgrading from overseas employment, instead, it appears that many
Filipinos are being de-skilled due to their employment for menial work abroad. Also, there
are many concerns and problems encountered by workers abroad. These include unpaid
salaries, passports being withheld by employers, long working hours, and terrible working
conditions.
exchange in the Philippines. Emigration appears to be indispensable and will continue in the
future considering the country’s high unemployment rate and the dependency of families on
remittances from abroad. However, economic migration is not a short cut to development.
Emigration can only offer a temporary solution to the problem of employment generation.
Many Filipinos who leave for work overseas do not come from the pool of the unemployed;
instead, many were already employed at home but they leave to seek higher wages abroad.
Others were “encouraged workers” like housewives who were initially not in the labor force
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but who were motivated to join the overseas labor market. Since the labor force of major
labor exporting countries such as China are expected to increase in the coming decades, the
Philippines faces increasing competition for workers. Some major labor importing countries
such as Japan have also started tightening their already rigid visa requirements and started
unemployment. In the long term, it is important to find ways and means of reducing the
dependence on emigraton.
With regard to skills transfer from overseas employment, Filipinos are actually being
de-skilled. For instance, college graduates work as domestic helpers in Hongkong, engineers
and government employees are employed as construction workers while highly educated
females work as domestic helpers. Further, even if workers learn new skills while abroad,
work experience and skills acquired are not necessarily well matched to local needs.
workers or if wage levels cannot match overseas wages. Therefore, many migrants who
return after completing their overseas contracts return to the Philippines and then re-apply for
Many serious problems and concerns have cropped up from the export for Filipino
labor. The government should provide adequate support and assistance to migrant workers
especially to victims of abuse and exploitation. Even if a large number of migrants are aware
of government projects for migrant workers, few only avail such for the reason that they get
Also, illegal workers despite their status should also be provided the necessary
Individual migrants and their families benefit from overseas employment through
remittances. Remittances increase enrolment at schools since most migrant workers allocate
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some amount for the education of their children and siblings. However, remittances and the
savings of returning migrants are not automatically converted into economic development.
Previous studies have shown that remittances are normally used for conspicuous consumption
such as housing, real estate, and the like and are not usually invested in job-creating
enterprises. Hence, policies should support small-scale production activities that are within
the reach of migrants’ families and programs on helping remittance recipients invest
benefits.
Further, it is suggested that government support from both the Philippines and South
Korea for OFW returnees be offered. This may come in forms of technical trainings for
business and employment which may be conducted during days-off. Also, since there are
several Philippine-based Korean companies that are labor-intensive, it might be possible that
the employers of the OFWs in Korea refer these OFW returnees to those Korean companies
Improved economic conditions in the source country like the Philippines will increase
the opportunity cost of migration and thus slow down the flow of migrants. However, it
might decrease the constraints on the capacity to finance migration and will instead increase
growth and employment generation and curb emigration pressures like promoting foreign
direct investments.
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APPENDIX A
SURVEY QUESTIONNAIRE
Dear Respondent,
I’m a Filipino exchange student conducting a survey of overseas workers in South Korea
for my research entitled: “Study on the Filipino Overseas Worker: A General Profile".
Through this survey, I hope to gather sufficient primary data on the characteristics of
May I then request your kind assistance by answering this questionnaire as honestly,
frankly and completely as you can. Please be assured that your identity will be kept
CONFIDENTIAL and all information will be used solely for the purposes of this study.
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A. GENERAL INFORMATION
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___company
___Korean husband/ wife
___job agent
___relatives
___friends
___others (please specify) ___________________
How much was your total placement fee and other pre-departure
expenses?
(estimate-please indicate if in won, pesos or US dollars)
Did you have a job in the Philippines before you came to Korea?
___ yes (What was your job in the Philippines?_____________)
___no
How much was your gross monthly salary in your last job in the Philippines? estimate
in pesos)_________________
How long have you been here? _____ year(s) ______ month(s)
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How long do you intend to stay in Korea from now? ______years
C. EMPLOYMENT/OCCUPATION
How much is your hourly wage in your current job? (in won)__
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How many times have you changed your employer? ______ times
Why? ________________________________________________________
Have you ever visited the Philippines after you came here? __yes ___no
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___bank
___others (please specify)___________________________________
Have you acquired or learned some new skills from your work
in Korea?
___yes (What skills?______________________________________)
___no (Why not? __________________________________________)
E. OTHERS
Are you aware of programs being undertaken by the government and non-government
organizations (NGOs) to help overseas workers? ___ yes ___ no
Have you availed yourself of these programs while you were working in Koea?_yes __no
Do you have any suggestions for the improvement of the situation of overseas workers
in Korea?______________________
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REFERENCES
Borjas, G. Friends or Strangers: The Impact of Immigrants on the U.S. Economy, Basic
Books, Inc., New York, USA
Cheng, M. (1999), “Out of the frying Pan”, in Time Magazine (August 16, 1999), Vol.154,
No.6
Go, 1996; Madigan and Pagtolun-an, 1990; Gonzalez, 1998; Carino, 1992; Vasquez, 1992
korea.wikia.com/wiki/Korean_visa_types
Martin, United Nations Centre for Regional Development, 1994; Sassen, 1994; Castles, 1994
Schlegel, 1964
Vasquez,2002
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www.worldbank.org
www.visasintl.com/korea-visa.aspx
www.dfa.gov.ph
www.adb.org
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