Assessing the link between schooling and wage inequality: The Philippine case

Conventional wisdom holds that schooling reduces wage inequality by leveling the playing field between the rich and the poor. But this does not hold true in some countries due varying reasons. A study in Western countries done by Martins and Pereira (2000) show that schooling contributes to wage inequality due to over education, interaction between schooling and ability, and differences in school quality or fields of study. Using the Labor Force Survey (LFS), we will test the link between schooling and wage inequality in the Philippines using quantile regression. We hypothesize that schooling in the Philippines contributes to wage inequality