This paper analyzes the relationship between growth and inequality of factor
income in the Philippines, focusing on the role played by the labor market. It
proposes a decomposition methodology that explores linkages between growth
in income and labor market performance in terms of labor force participation,
employment, working hours, and productivity. This paper introduces a methodology
that provides a direct linkage between growth, inequality, and labor market
characteristics. It provides empirical analysis using both the Family Income and
Expenditure Survey and Labor Force Survey, covering the period 1997–2003.