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Pulling up from the depths of poverty: Do the Pantawid Pamilya cash transfers to the poor reduce their consumption expenditure shortfalls?

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  • Joseph Capuno

    (University of the Philippines
    Department of Economy, Planning and Development)

Abstract

With its emphasis on incentivizing beneficiary households to invest in the health and education of their children, the Philippines’ Pantawid Pamilyang Pilipino Program (4Ps) is expected to reduce future poverty. Yet, the cash transfers provided under the program have impacts on the household’s current income and consumption, and therefore, on contemporaneous poverty status. While the transfers may be inadequate to lift the poor out of poverty, these could pull them up from the depths of poverty. Using a panel dataset, we estimated the elasticity of the region-level income gap and poverty gap, both based on per capita consumption expenditures, with respect to 4Ps indicators, controlling for other factors. In general, the poverty gap is not responsive to 4Ps indicators. In contrast, the income gap is sensitive to changes in the total 4Ps cash transfers, with the effect moderated by the poverty incidence in the region. The policy implication is that, among the 4Ps beneficiaries, the poor could be granted greater cash transfers to pull them up from the depths of destitution.

Suggested Citation

  • Joseph Capuno, 2025. "Pulling up from the depths of poverty: Do the Pantawid Pamilya cash transfers to the poor reduce their consumption expenditure shortfalls?," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 62(1), pages 112-126, June.
  • Handle: RePEc:phs:prejrn:v:62:y:2025:i:1:p:112-126
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    File URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/1071/1013
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    References listed on IDEAS

    as
    1. Melba V. Tutor, 2014. "The Impact of Philippines’ Conditional Cash Transfer Program on Consumption," UP School of Economics Discussion Papers 201405, University of the Philippines School of Economics.
    2. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    3. Tabuga, Aubrey D. & Mina, Christian D. & Reyes, Celia M. & Asis, Ronina D., 2013. "Promoting Inclusive Growth through the 4Ps," Discussion Papers DP 2013-09, Philippine Institute for Development Studies.
    4. Melba V. Tutor, 2014. "The impact of the PhilippinesÕ conditional cash transfer program on consumption," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 51(1), pages 117-161, June.
    5. Orbeta, Aniceto Jr. C. & Paqueo, Vicente B., 2016. "Pantawid Pamilya Pilipino Program: Boon or Bane?," Discussion Papers DP 2016-56, Philippine Institute for Development Studies.
    6. Norbert Schady & Ariel Fiszbein & Francisco H.G. Ferreira & Niall Keleher & Margaret Grosh & Pedro Olinto & Emmanuel Skoufias, 2009. "Conditional Cash Transfers : Reducing Present and Future Poverty," World Bank Publications - Books, The World Bank Group, number 2597.
    7. Ravallion, Martin, 2016. "The Economics of Poverty: History, Measurement, and Policy," OUP Catalogue, Oxford University Press, number 9780190212773.
    8. Stella A. Quimbo & Aleli D. Kraft & Rhea M. Molato‐Gayares & Carlos Antonio R. Tan & Joseph J. Capuno, 2021. "How do the intended and unintended beneficiaries respond to the Philippines' conditional cash transfer program?," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1267-1292, August.
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    Keywords

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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