Human capital is the Philippines’ most important resource. Two examples of its benefit to the country: remittances from skilled and semi-skilled workers who work abroad amount to about 10 percent of its GDP, and it is one of the top destinations for foreign enterprises seeking educated workers...

T.W. Schultz (1975) proposed that returns to human capital were highest in economicenvironments where technology, price or production shocks were common and managerial skillsto adapt resource allocations to those shocks were most in need. We hypothesize that variationin returns to human capital...