The international migration of Filipinos has raised questions on how outflows of human resources have affected the domestic labor market. Focusing on the education-labor market, the article presents a theoretical and empirical description of the factors affecting the supply and demand of specific skills. Typical of less developed countries, the education-labor market in the Philippines is beset by capital and information imperfections. The article advances that the education-labor market has flexibility in supplying many of the skills demanded domestically and overseas. However, capital and information imperfections have restricted the efficient allocation of education or training investment to employment opportunities in the domestic and foreign labor markets.
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