This paper shows mutually consistent evidence to support female advantage in education
and disadvantage in labor markets observed in the Philippines. We set up a model that
shows multiple Nash equilibria to explain schooling and labor market behaviors for females
and males. Our evidence from unique sibling data of schooling and work history and from
the Philippine Labor Force Survey support that family arrangement to tighten commitment
between daughters and parents keeps a high level of schooling investments in daughters.
Because wage penalty to females in labor markets means that education is relatively important
as a determinant of their earnings, parental investments in their daughters’ education
has larger impacts on the income of their daughters than on their sons. Parents expect
larger income shared from better-educated adult daughters. In contrast, males stay in an
equilibrium, with low levels of schooling investment and income sharing. Our results also
imply that the above institutional arrangement is stronger among poor families.