Harnessing the potential of online marketplaces in the Philippines: Insights from the National Information and Communications Technology Household Survey

Abstract

Using the Philippinesʼ first nationally representative survey designed to characterise digital commercial and non-commercial engagements, including the use of information and communications technology (ICT), the digital economy, and technology-enabled activities, we investigate the presence of gendered disparities in online marketplaces. This is consistent with the spirit of a gender and development approach that aims for equitable outcomes between men and women. We verify whether the observed participation of women in online marketplaces results in higher online sales. To establish the determinants of participation in and incomes from online marketplaces, we use a Heckman estimator in cognisance of the non-random choices people make when they enter online marketplaces. The negative selection indicates that those likely to sell have unobserved attributes negatively correlated with online income. Based on our modelʼs income predictions, men outperform women in online sales and hold the advantage, replicating a trend observed in traditional marketplaces. Results also highlight the importance of skills, digital awareness and habits, selling platforms, and ICT infrastructure. The paper also identifies potential initiatives for online marketplaces.