MANAGEMENT OF MINIMUM WAGE EARNERS PARENTS OF GRADE 11-INTEGRITY

ON PROVIDING THEIR FAMILY NEEDS

A Research Paper Proposal Presented to the Faculty of Las Piñas City National Senior High

School CAA-Campus

In Partial Fulfillment of the Requirements In Practical Research 1

Name of Researcher/Researchers

Carbonell, Kiara Tiffany D.

Suerte, Valerie Mae B.

Pascual, Khieyanna U.

Villareal, Jasmine N.

1-Integrity

S.Y. 2022-2023

June 2023
 CHAPTER 1

INTRODUCTION

BACKGROUND OF THE STUDY

According to Deeming (2020), this paper evaluates the worker-level effects of a

historically large and permanent increase in the minimum wage in Lithuania. Its identification

strategy leverages variation in workers’ exposure to the new minimum wage and exploits the fact

that there has been no increase in the minimum wage in previous years to account for the

heterogeneous labor market prospects of low-wage workers relative to high-wage workers. Using

detailed administrative records to track workers before and after the policy change, they show

that the minimum wage hike significantly increased the earnings of low-wage workers. This

direct effect was amplified by wage spillovers reaching the median of the pre-policy income

distribution. Overall, they find no negative effects on the employment prospects of low-wage

workers. However, they provide suggestive evidence that young workers, highly exposed

municipalities, and tradable sectors may be more negatively affected. In contrast, labor market

concentration or the presence of envelope wages appear to be associated with lower job losses.

Taken together, its findings imply an employment elasticity with respect to the minimum wage

of 0.021 and an own-wage elasticity of 0.033, suggesting that wage gains dominated

employment losses.

As explained by Berkeley (2019), providing a minimum wage for parents can help

address these challenges by ensuring that parents have a decent standard of living and are better

able to meet their families needs. This, in turn, can lead to better outcomes for children,

including improved health, educational attainment, and overall well-being.

 According to an article in Practical Business Skills (2023), a budget is a tool to track

when and how people earn or spend money. Creating a budget is an important pillar of their

overall success and security. It allows them to oversee and better understand whether their

business has enough revenue (incoming money) to pay its expenses. Using a budget can help

them make more informed financial decisions. Budgeting is an ongoing process rather than a

one-time exercise because their business revenue and expenses could change at any time. Revisit

and rework their budget monthly, quarterly, or after changes to their business, such as big

expenses, occur. This will help them stay on track to achieve their goals.

As explained by Buchenau (2018), budget management has fundamental importance no

matter what the situation is. It allows an individual to create their own spending plan and have

enough money for the things they need and for important things.

As mentioned by Neumark et al. (2004), the paper provides evidence on a wide set of

margins along which labor markets can adjust in response to increases in the minimum wage,

including wages, hours, employment, and ultimately labor income. Not surprisingly, the

evidence indicates that low-wage workers are most strongly affected, while higher-wage workers

are less affected. Workers who initially earn near the minimum wage experience wage gains.

Nevertheless, their hours and employment decline, and the combined effect of these changes on

earned income suggests adverse consequences, on net, for low-wage workers.

In this study, the researchers will determine the contribution of the minimum wage earner

to providing for the needs of their family. The purpose of this study is to determine the personal

experiences of the respondent in managing money and focus on their strategies for providing for

the needs of their family.

STATEMENT OF THE PROBLEM

The primary goal of this study is to present how the minimum wage earner parents of

Grade 11-Integrity manage their budget to provide their family needs.

The following questions were specifically sought by the researchers:

1.What are the budgeting styles utilized by the minimum wage earner parents on providing for

their family needs?

2.What are the struggles concerning the parent who earned minimum wage?

3.What are the potential barriers or limitations faced by minimum wage earners in accessing

additional souces of income?

OBJECTIVES OF THE STUDY

The specific goals of this study are:

● To find out the budgeting style utilized by the minimum wage earner parents on providing

family

needs

● To know the struggles experienced by parents who earned minimum wage

● To identify the potential barriers or limitations faced by minimum wage earners in accessing

additional sources of income

SIGNIFICANCE OF THE STUDY

 This study aims to present the how minimum wage earner parents of Grade 11-Integrity

manage their budget to provide their family needs. Thus, this study is most significant to the

following.

Parents: This study would provide relevant information on how to balance their money and

saving. They can also get a lot of ideas that they can use for budgeting their daily expenses.

Student: This study will be helpful for the student to have awareness about the conditions of

minimum wage earners. It also gives them the idea of being practical when it comes to budgeting

the money, especially if their parents are minimum wage earners.

Future Researchers: The findings of the study will provide additional information for future

researchers who want to conduct further research on the related field. The concept of the study

will also serve as a guide on the level of minimum wage earns involvement in the management

of money for providing their family needs.

SCOPE AND DELIMITATION

This study focuses on the management of minimum wage earners parents in Grade

11-Integrity in providing for their family's needs. In the data collection a researchers will be

have a 10 randomly selected parents in Grade 11-Integrity. The study will start in June 2023.

The researchers focused on the management of minimum wage earners parents in Grade 11-

Integrity in providing for their family's needs as the subject of this study. Furthermore, the

researchers chose the selected parents in Grade 11-Integrity as respondents in the given set
of questionnaires. Afterwards, the researchers will come up with the assessment procedures

where the information gathered will be analyze and evaluate.

DEFINITION OF TERMS

In order to have a deeper understanding of the terms used in the study, the

following terms are defined operationally and theoretically:

Minimum Wage - is the minimum amount of money that an employer is required to pay wage

earners for the work performed during a given period, which cannot be reduced by a collective

agreement or an individual contract.

Budget System- the budgeting system of the Philippines government provides the means by

which the government decides how much money to spend, what to spend it on, and how to raise

the money it has decided to spend. Once these decisions are made, the budget system ensures

they are carried out.

Family Income- the primary income and receipts from other sources received by all family

members during the reference period, as participants in any economic activity or as recipients of

transfers, pensions, grants, interests, food, and non-food items received as gifts by the family.

Minimum Wage Earners Parents- this is a mother or father who earns the minimum wage enough

to support the basic needs of the family.

Budgeting Process- it can be defined as a systematic business activity that encompasses the

development, implementation, and evaluation of a plan for the provision of services and capital
assets, including fixed resources such as money or time, during a given period to achieve desired

financial targets (Tracy, 2008).

Budget - the budgeting of creating a plan to spend your money.

REFERENCES

Deeming (2020). Minimum income standards and reference budgets: In Policy Press eBooks
(pp. 333–344). Retrieved from https://doi.org/10.2307/j.ctv125jsbv.30

Institute for Research on Labor and Employment UC Berkeley (2019). Local minimum wage
laws: Impacts on workers, families, and businesses. Retrieved from https%3A%2F
%2Fscholar.google.com%2Fscholar%3Fhl%3Den%26as_sdt%3D0%252C5%26q
%3DEconomic%2520Policy%2520Institute%2520Briefing%2520Paper%252C
%2520(487)%252C%25201-33
Practical Business Skills (2023), budgeting. Retrieved from
https://www.practicalbusinessskills.com/getting-started/financialbasics/budgeting#:~:
text=A%20budget%20is%20a%20tool,money)%20to%20pay%20its%20expenses

Buchenau, Z. (2018). Why Is Budgeting Important? 10 Key Benefits. Retrieved from https://
bethebudget.com/why-is-budgeting-important

Neumark, D., Schweitzer, M. E., & Wascher, W. (2004). Minimum Wage Effects throughout
the Wage Distribution. Journal of Human Resources, 39(2), 425. Retrieved from https:
//doi.org/10.2307/3559021

1.1 Definition and purpose. (2015, December 3). Retrieved from https://www.ilo.org/global/
topics/wages/minimum-wages/definition/WCMS_439072/lang--en/index.htm

Budget System and Concepts and Glossary. (n.d.). Retrieved from https://library.unt.edu/gpo/
NCARC/whitepaper/budget.htm

Family Income | Philippine Statistics Authority. (n.d.). Retrieved from https://psa.gov.ph/content

/family-income

KnowledgeBrief. (n.d.). Budgeting Processes - What is it? Definition, Examples and More.
Retrieved from https://www.kbmanage.com/concept/budgeting-processes

Merriam Webster, (2023). Retrieved from https://www.merriam-webster.com/dictionary/family?

fbclid=IwAR0ol-agSruQjtKzVcX_9mqdgRmRX-pz2n9pHftEzQ8yqzCCaJz6anxiftw
What is Budgeting and Why is it Important? (n.d.). My Money Coach. Retrieved from
https://www.mymoneycoach.ca/budgeting/what-is-a-budget-planning-forecasting

Cambridge University Press & Assessment, (2023). Retrieved from

https://dictionary.cambridge.org/us/dictionary/english/provide?
fbclid=IwAR2l74BIMWM1NHVw9C2aYp1dwIINWLso3gEfJbtfbt5uU5SaJQe6z69xlP4

Buy definition & meaning, (2023). Retrieved from https://www.dictionary.com/browse/buy

CHAPTER 2
REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the Review of Related Literature and Studies, Analysis, Research

Paradigm and Conceptual Framework.

Related Literature

The researchers primarily reviewed the different literatures from both foreign and local

researchers, which have relevance to this study.

According to International Labor Organization (n.d), the purpose of minimum wage is to

protect workers against unduly low pay. They help ensure a just and equitable share of the fruits

of progress to all, and all a minimum living wage to all who are employed and in need of such

protection. Minimum wages can also be one element of a policy to overcome poverty and reduce

inequality, including those between men and women, by promoting the right to equal

renumeration for work of equal value.

As explained by Lauren (2019), budgeting systems are designed to help parents

understand and evaluate their relationship with money. While they all share a common goal, they

often use distinct tactics to get there. They have narrowed down some options to help them find
one that resonates. Use these recommendations as a guide. If they don't know which route to

take, do a financial self-assessment. Their present financial state and goals can give them a clue.

Perhaps they are in debt and need a system to help them decrease spending, or they want to learn

how to balance expenses with saving for a down payment on a house. Once they know where

they stand and what they hope to accomplish, they can pick an option that matches those needs.

As stated by Arindrajit (2019), there is robust evidence that higher minimum wages

increase family incomes at the bottom of the distribution. The long-run (3 or more years)

minimum wage elasticity of the non-elderly poverty rate with respect to the minimum wage

ranges across alternative specifications. The long-run minimum wage elasticities for the tenth

and fifteenth unconditional quantiles of family income range depending on specification. A

reduction in public assistance partly offsets these income gains, which are on average percent

when using an expanded income definition including tax credits and noncash transfers.

Based on Amy Bell (2023), Budgeting can help parents set long-term financial goals,

minimize overspending, and avoid overspending habits. A budget forces them to map out their

goals, save their money, and keep track of their progress by seeing what money they earn and

what money they have going out. Through a budget, they can create a map for where they need

to use their money when budgeting their money to get their goal.

According to Ash et al. (2023), children in poverty are at significantly greater risk of

experiencing child maltreatment. Family economic security policies, such as minimum wage

laws, offer a promising prevention strategy to support low-income families. This study utilized
data from the Fragile Families and Child Wellbeing Study, a longitudinal birth cohort study, to

examine the effect of changes in state-specific minimum wage laws on maternal self-reported

child maltreatment and material hardship as it varies by the developmental age of the child. A

series of fixed effects models with an interaction between the minimum wage and the age of the

focal child were used to estimate if there was variation by developmental period in the impact of

minimum wage laws on the following outcome variables: all domains of child maltreatment,

maternal work-related stress, reported material hardship, aggravation in parenting, and maternal

depression. Results revealed significant effects of an increased minimum wage on maternal self-

reported child neglect and material hardship when children were 3 years of age, and this

relationship became non-significant as children aged. No effect was observed by age for other

forms of child maltreatment or any other outcome variables. Study findings suggest minimum

wage laws may have differential effects on child neglect depending on the developmental period

in which they are received. Minimum wages are increasingly discussed as an instrument against

in-work poverty and income inequality in Europe. Just recently, the German government opted

for a substantial ad hoc increase of the minimum wage level to €12 per hour, mentioning poverty

prevention as an explicit goal. We use the introduction of the federal minimum wage in Germany

in 2015 to study its redistributive impact on disposable household incomes. Based on the

German Socio-Economic Panel, we analyze changes in poverty and income inequality,

investigating different mechanisms of transmission from individual gross wage rates to

disposable household incomes. They find that the minimum wage is an inadequate tool for

income redistribution because it does not target poor households. Individuals affected by the

minimum wage are not primarily in households at the bottom of the income distribution but are

spread across it. Consequently, welfare dependence decreases only marginally. The withdrawal
of transfers or employment effects cannot explain the limited effect on poverty. Complementary

simulations show that neither full compliance nor a markedly higher level of €12 per hour can

render the minimum wage more effective in reducing poverty.

As mentioned by Howell (2023), this relies on a regression discontinuity (RD) design to

estimate the impact of an unconditional cash transfer from the Minimum Income Living

Allowance (MLSA), one of the largest basic income guarantee programs in the world, on the

household decision to participate in rural-urban migration. The study is informed by novel

survey data that provides the first and only representative information on China’s large but under

studied ethnic minority areas. Exploiting the income-based MLSA eligibility rule as an

instrument, fuzzy RD estimates reveal that MLSA subsidy receipt significantly increases the

likelihood that complier households participate in rural-urban migration, a finding that is robust

to a battering ram of sensitivity tests and checks for robustness. In line with the idea that MLSA

cash subsidies help to loosen household credit or risk constraints, I show that the observed

positive effects are driven mainly by poor [ethnic minority] households that face relatively high

perceived migration costs. Additional evidence shows that the MLSA program increases

compliant households’ disposable income and consumption despite having no significant effect

on household investment behavior. The main findings suggest that a small cash infusion from a

minimum income program like MLSA helps to promote migration-led urbanization and rural

household well-being.

According to Jutkowitz et al. (2022), based on a production function perspective, they

construct a manufacturing firm and city-level data set to investigate the role of minimum wage

increases in firm pollution emissions. The empirical results suggest that the rise of minimum
wages in China significantly increases firm pollution discharges. We adopt a series of strategies

to deal with endogeneity problems and find that our results are robust to these approaches. We

then estimate the heterogeneous effects of the minimum wage standard and demonstrate that

minimum wages' impacts on firm pollution discharges are strong for firms in the central region,

those with a younger age, those with a small scale, and those located in the less developed areas.

Finally, we explore the potential mechanisms of raising minimum wages and reveal the existing

channels through which a higher minimum wage expands firm pollution emissions. Our findings

provide empirical evidence for preventing firm pollution.

Related Studies

The researchers primarily reviewed the different literature from both foreign and local

researchers, which has bearings on the variables included in the study. It focuses on the

minimum wage and family needs.

Workers in the National Capital Region (NCR), Western Visayas, and three other areas

will soon receive an increase in their take-home pay as a result of a new minimum wage.

As stated by the Department of Labor and Employment or DOLE (2022), after the new

directive takes effect on June 4, the Metro Manila minimum wage would rise by a total of Php

33. Minimum Wage Earners one of the most effective methods to prevent cheap labor from

being exploited is via minimum wage laws across the globe. Employee productivity and income

disparities across gender and age groups are greatly improved by minimum wage policies, which
operate as a survival strategy for workers. Employee perks such as thirteenth-month pay, holiday

pay, health, and insurance benefits maintain a stable working environment for all employees in

the Philippines, regardless of their status or occupation.

According to Gruyter (2019), germany introduced a statutory hourly minimum wage that

was not only universally binding but also set at a relatively high level. They discuss the short-run

effects of this new minimum wage on a wide set of socioeconomic outcomes, such as

employment and working hours, earnings and wage inequality, dependents and self-employment,

as well as reservation wages and satisfaction. They also discuss difficulties in the implementation

of the minimum wage, the measurement of its effects related to non-compliance, and the

suitability of data sources. Two years after the minimum wage introduction, the following

conclusions can be drawn: while hourly wages increased for low-wage earners, some small

negative employment effects are also identifiable. The effects on aspired goals, such as poverty

and inequality reduction, have not materialized in the short run. Instead, a tendency to reduce

working hours is found, which alleviates the desired positive impact on monthly income.

Additionally, the level of noncompliance was substantial in the short run, thus drawing attention

to problems when implementing such a wide-ranging policy.

As explained by Pascual (2022), they described the budgeting and decision-making

before and during the COVID-19 pandemic of purposively selected low-income earners in

Nueva Ecija, Philippines. Through this study, the researcher would be able to compare and

evaluate the financial strategies and plans of the respondents. The researcher used the descriptive

research design through a survey questionnaire administered to 60 respondents and found out

that they earn between P150 and P420 ($2.58 and $7.22) per day. They had changed their
budgeting before and during the pandemic, and additional expenses were included during the

pandemic, such as the budget for internet load. Daily finances and the prices of goods and

services were their main factors in deciding when and how much to spend. The respondents are

coping with the expenses before and during a pandemic; however, before the pandemic, they can

still allocate money for savings, but during the pandemic, there’s no money left for savings.

Based on Morrissey (2023), they used a differences-in-differences strategy with national

time diary data from 2003 to 2018 to examine the effects of minimum wage changes on parents’

time with children and in child-related activities. Findings indicate that a $1 increase in the

minimum wage was associated with a small increase (2.6%) in the likelihood parents with one or

more children under age 16 spent time actively caring for or helping children on weekends and in

more total time with children (a 2% increase in secondary child care time). In general,

coefficients were larger for mothers’ time use, particularly non-employed mothers, with potential

implications for gender disparities in care giving. Unmarried parents and parents of color showed

increases in their time spent in activities related to their children’s health (55% increase).

Mothers showed an increase (8%) in the likelihood they spent any time in child education-related

activities, and increases in child care time appeared concentrated among parents whose youngest

child was 6–15 years of age. Findings suggest that increases in state minimum wages may lead to

small increases in parents’ time investments in children, with some variation among subgroups.

According to Neumark & Wascher (2006b), they review the burgeoning literature on the

employment effects of minimum wages—in the United States and in other countries—that was

spurred by the new minimum wage research beginning in the early 1990s. The review indicates
that there is a wide range of existing estimates and, accordingly, a lack of consensus about the

overall effects on low-wage employment of an increase in the minimum wage. However, the oft-

stated assertion that recent research fails to support the conclusion that the minimum wage

reduces the employment of low-skilled workers is clearly incorrect. A sizable majority of the

studies surveyed in this monograph give a relatively consistent (although not always statistically

significant) indication of the negative employment effects of minimum wages. In addition,

among the papers we view as providing the most credible evidence, almost all point to negative

employment effects, both for the United States as well as for many other countries. Two other

important conclusions emerge from our review. First, we see very few, if any, studies that

provide convincing evidence of the positive employment effects of minimum wages, especially

those that focus on broader groups (rather than a narrow industry) for which the competitive

model generally predicts disemployment effects. Second, the studies that focus on the least-

skilled groups that are likely most directly affected by minimum wage increases provide

relatively overwhelming evidence.

As explained by Kaufman et al. (2020), social welfare policies such as the minimum

wage can affect population health, though the impact may differ depending on the level of

unemployment experienced by society at a given time.

As mentioned by Lindner & Harasztosi (2019), this paper provides a comprehensive

assessment of the margins along which firms responded to a large and persistent minimum wage

increase in Hungary. They show that employment elasticities are negative but small even four

years after the reform; that around 75 percent of the minimum wage increase was paid by
consumers and 25 percent by firm owners; that firms responded to the minimum wage by

substituting labor with capital; and that disemployment effects were greater in industries where

passing the wage costs to consumers is more difficult. They estimate a model with monopolistic

competition to explain these findings.

Analysis

Based on the foreign and local related literature and studies, researchers derived some

information in the field of the minimum wage and family needs.

In this chapter, based on Pascual (2022), that minimum wage earners is one of the most

effective methods to prevent cheap labor and it has benefits such as thirteenth- month pay,

holiday pay, health and insurance benefits. Researchers found that they had changed their

budgeting before and during the pandemic, and that daily finances and prices of goods and

services were their main factors in deciding when and how much to spend. However, there was

no money left for savings during the pandemic.

Minimum wage earners is one of the most effective methods to prevent cheap labor and it

has benefits such as thirteenth-month pay, holiday pay, health and insurance benefits.

This research examined the budgeting and decision-making of low-income earners in

Nueva Ecija, Philippines before and during the COVID-19 pandemic. Results showed that

daily finances and prices of goods and services were the main factors in deciding when and

how much to spend.

 INPUT PROCESS OUTPUT

Profile:
• Management of minimum
• Age • Interview wage earners parents of Grade
• Years of working • Narrative model 11-Integrity

• Family daily expenses • Thematic analysis

Figure 1: Research Paradigm

The IPO Research Paradigm shows the focuses of the study: the input represents the

profile of the minimum wage earner in terms of age, sex, years of works and family daily

expenses. The process of these is firstly, we conduct an interview and survey to the respondent

that can help us to know their stategies when management of money and secondly, narrative

model it is the part where in the researcher will narrate the experiences and perception of the

respondent. Lastly, thematic analysis is a method that we use to systematically organize and

analyze of our data sets.

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Schwahn, L. (2023). How to Choose the Right Budget System: 4 Methods to Consider. Nerd

Wallet. Retrieved from https://www.nerdwallet.com/article/finance/how-to-choose-

the-right-budget-system

1.1 Definition and purpose. (2015, December 3). Retrieved from

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20against%20unduly%20low%20pay

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Kaufman, J. A., Salas-Hernández, L., Komro, K. A., & Livingston, M. D. (2020). Effects of

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