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Poverty and Income Dynamics in Philippine Villages, 1985-2004

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  • Jonna P. Estudillo
  • Yasuyuki Sawada
  • Keijiro Otsuka

Abstract

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.

Suggested Citation

  • Jonna P. Estudillo & Yasuyuki Sawada & Keijiro Otsuka, 2008. "Poverty and Income Dynamics in Philippine Villages, 1985-2004," Review of Development Economics, Wiley Blackwell, vol. 12(4), pages 877-890, November.
  • Handle: RePEc:bla:rdevec:v:12:y:2008:i:4:p:877-890
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    References listed on IDEAS

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    1. Yasuyuki Sawada & Jonna P. Estudillo, 2012. "The MDGs and exit time: the case of the Philippines," Applied Economics, Taylor & Francis Journals, vol. 44(26), pages 3371-3377, September.
    2. World Bank, 2005. "World Development Indicators 2005," World Bank Publications, The World Bank, number 12426.
    3. repec:wbk:wbpubs:12425 is not listed on IDEAS
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    Cited by:

    1. Nandika S. Kumanayake & Jonna P. Estudillo & Keijiro Otsuka, 2014. "Changing Sources of Household Income, Poverty, and Sectoral Inequality in Sri Lanka, 1990–2006," The Developing Economies, Institute of Developing Economies, vol. 52(1), pages 26-51, March.
    2. Satis Devkota & Mukti Upadhyay, 2013. "Agricultural Productivity and Poverty Reduction in Nepal," Review of Development Economics, Wiley Blackwell, vol. 17(4), pages 732-746, November.
    3. Tran Quang Tuyen, 2015. "Socio-Economic Determinants of Household Income among Ethnic Minorities in the North-West Mountains, Vietnam," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 17(1), pages 139-159, June.
    4. Goto, Jun & Sawada, Yasuyuki & Aida, Takeshi & Aoyagi, Keitaro, 2015. "Incentives and Social Preferences: Experimental Evidence from a Seemingly Inefficienct Traditional Labor Contract," 2015 Conference, August 9-14, 2015, Milan, Italy 211687, International Association of Agricultural Economists.
    5. 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).
    6. Isaac Koomson & Simplice A. Asongu, 2016. "Relative Contribution of Child Labour to Household Farm and Non-Farm Income in Ghana: Simulation with Child's Education," African Development Review, African Development Bank, vol. 28(1), pages 104-115, March.
    7. 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.
    8. Jonna Estudillo & Tomoya Matsumoto & Chowdhury Zia Uddin Hayat & Nandika S. Kumanayake & Keijiro Otsuka, 2013. "Labor markets, occupational choice, and rural poverty in four Asian countries," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 50(1), pages 23-44, June.
    9. Okabe, Masayoshi, 2016. "Gender-preferential intergenerational patterns in primary educational attainment: An econometric approach to a case in rural Mindanao, the Philippines," International Journal of Educational Development, Elsevier, vol. 46(C), pages 125-142.
    10. Jonna P. Estudillo & Keijiro Otsuka & Saygnasak Seng-Arloun, "undated". "Pathways out of poverty in rural Laos," Working Papers e94, Tokyo Center for Economic Research.
    11. Okabe, Masayoshi, 2014. "Gender-preferential intergenerational patterns in primary education attainment : a quantitative analysis of a case of rural Mindanao, the Philippines," IDE Discussion Papers 479, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    12. 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 31, Institute of Economic Research, Hitotsubashi University.
    13. Sakai, Yoko & Estudillo, Jonna P. & Fuwa, Nobuhiko & Higuchi, Yuki & Sawada, Yasuyuki, 2017. "Do Natural Disasters Affect the Poor Disproportionately? Price Change and Welfare Impact in the Aftermath of Typhoon Milenyo in the Rural Philippines," World Development, Elsevier, vol. 94(C), pages 16-26.

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