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Pro-poor growth or poverty trap? : estimating intergenerational income mobility in rural Philippines

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  • Takahashi, Kazushi

Abstract

Using an intergenerational database covering nearly a quarter of a century, we explored the degree of intergenerational income mobility among individuals who had grown up in rural Central Luzon, the Philippines. We found that the intergenerational income elasticity is significantly lower than unity, at roughly 0.23, indicating that the average income growth rate is higher for children born to poorer families. The detailed analysis, however, revealed that its magnitude significantly varies across percentiles in a U-shape. The results provide supporting evidence of multiple equilibria or poverty trap.

Suggested Citation

  • Takahashi, Kazushi, 2013. "Pro-poor growth or poverty trap? : estimating intergenerational income mobility in rural Philippines," IDE Discussion Papers 382, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper382
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    7. Jere R. Behrman & Paul Taubman, 1990. "The Intergenerational Correlation Between Children'S Adult Earnings And Their Parents' Income: Results From The Michigan Panel Survey Of Income Dynamics," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 36(2), pages 115-127, June.
    8. Schultz, Theodore W, 1980. "Nobel Lecture: The Economics of Being Poor," Journal of Political Economy, University of Chicago Press, vol. 88(4), pages 639-651, August.
    9. Andrade, Eduardo & Veloso, Fernando & Madalozzo, Regina & Ferreira, Sergio G, 2003. "Do Borrowing Constraints Decrease Intergenerational Mobility in Brazil? A Test Using Quantile Regression," Insper Working Papers wpe_38, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
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    11. Takahashi, Kazushi & Otsuka, Keijiro, 2007. "Human Capital Investment and Poverty Reduction over Generations: A Case from the Rural Philippines, 1979-2003," IDE Discussion Papers 96, Institute of Developing Economies, Japan External Trade Organization(JETRO).
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    Cited by:

    1. Michael P. Vale, 2022. "Contextualizing Poverty along with the Sustainable Development Goals (SDG’s) 3, 6 and 9 as non-income indicators in Ocampo, Camarines Sur Philippines: Evidences from CBMS 2019," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(8), pages 249-259, August.
    2. Arturo Martinez Jr. & Mark Western & Michele Haynes & Wojtek Tomaszewski, 2015. "How Income Segmentation Affects Income Mobility: Evidence from Panel Data in the Philippines," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 2(3), pages 590-608, September.
    3. Bevis, Leah E.M. & Barrett, Christopher B., 2015. "Decomposing Intergenerational Income Elasticity: The Gender-differentiated Contribution of Capital Transmission in Rural Philippines," World Development, Elsevier, vol. 74(C), pages 233-252.

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    More about this item

    Keywords

    Philippines; Poverty; Income distribution; Income; Rural Poverty; Economic Mobility;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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