Human Capital, Migration, and Regional Income Convergence in the Philippines
We test the convergence of real income using the Philippine regional data over the period of 1980-2000. Differences in real income across regions were large and persistent. Though regional incomes did not converge towards a common level (absolute convergence), they did converge controlling for human capital measured by average schooling years (conditional convergence). Human capital and its accumulation contributed to economic growth. People with higher human capital were more likely to move across regions. In addition, people tended to move from poor to rich regions. The absence in the absolute convergence may be due to the fact that higher human capital tended to move from poor to rich regions.
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