Labor market indicators and crime rate in the Philippines using regional panel data regression analysis

Abstract

Few empirical research exists that study on the relationship between labor market indicators and crime and those studies that have done so, use national level data. This paper aims to determine the relationship of labor market indicators and crime rate in 17 regions in the Philippines using regional-level panel data analysis. A regression analysis has been presented using data from three different time periods-2002 to 2008, 2009 to 2014, and 2002 to 2014. The evidence suggests that completion rates in both primary and secondary and gross regional domestic product per capita have consistent and significant effects on crime whereas labor market indicator variables, such as unemployment rate, underemployment rate and labor force participation rate have statistically insignificant coefficient estimates.