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Poverty and Income Dynamics in Philippine Villages, 1985-2004


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  • Jonna P. Estudillo
  • Yasuyuki Sawada
  • Keijiro Otsuka


The authors examined the long-term changes in household income structure and decline in poverty in three rice-growing villages in the rural Philippines from 1985 to 2004. They found a shift of household income structure away from farm to nonfarm sources, accompanied by a decline in the incidence of poverty by about one-half. Such a decline can be explained primarily by the rise in returns to the "quantity" attributes of human capital, measured by age composition, and, secondly, by the rise in returns to the "quality" attributes, measured by the proportion of household members completing secondary and tertiary schooling. It is clear that the poor benefited from the development of the nonfarm labor market where they were able to fully utilize their only asset, that is unskilled labor. Copyright � 2008 The Authors. Journal compilation � 2008 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of Development Economics.

Volume (Year): 12 (2008)
Issue (Month): 4 (November)
Pages: 877-890

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Handle: RePEc:bla:rdevec:v:12:y:2008:i:4:p:877-890

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Cited by:
  1. Okabe, Masayoshi, 2013. "Where does Philippine education go? : the "K to 12" program and reform of Philippine basic education," IDE Discussion Papers 425, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  2. Sakai, Yoko & Estudillo, Jonna P. & Fuwa, Nobuhiko & Higuchi, Yuki & Sawada, Yasuyuki, 2012. "Do Natural Disasters Affect the Poor Disproportionately? The Case of Typhoon Milenyo in the Rural Philippines," PRIMCED Discussion Paper Series, Institute of Economic Research, Hitotsubashi University 31, Institute of Economic Research, Hitotsubashi University.


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