Human Capital Investment and Poverty Reduction over Generations: A Case from the Rural Philippines, 1979-2003
This paper attempts to identify a pathway out of poverty over generations in the rural Philippines, based on long-term panel data spanning for nearly a quarter of a century. Specifically, it sequentially examines the determinants of schooling, subsequent occupational choices, and current non-farm earnings for the same individuals. We found that an initial rise in parental income, brought about by the land reform and the Green Revolution, among other things, improves the schooling of children, which later allows them to obtain remunerative non-farm jobs. These results suggest that the increased agricultural income, improved human capital through schooling and the development of non-farm sectors are the keys to reducing poverty in the long run. It must be also pointed out that the recent development of the rural non-farm sector offers ample employment opportunities for the less educated, which also significantly contributed to the poverty reduction.
|Date of creation:||Mar 2007|
|Date of revision:|
|Publication status:||Published in IDE Discussion Paper. No. 96. 2007.3|
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- Lanzona, Leonardo A., 1998. "Migration, self-selection and earnings in Philippine rural communities," Journal of Development Economics, Elsevier, vol. 56(1), pages 27-50, June.
- Eswaran, Mukesh & Kotwal, Ashok, 1994. "Why Poverty Persists in India: A Framework for Understanding the Indian Economy," OUP Catalogue, Oxford University Press, number 9780195632385, March.
- Kei Kajisa, 2007. "Personal Networks and Nonagricultural Employment: The Case of a Farming Village in the Philippines," Economic Development and Cultural Change, University of Chicago Press, vol. 55, pages 669-707.
- Supattra Cherdchuchai & Keijiro Otsuka, 2006. "Rural income dynamics and poverty reduction in Thai villages from 1987 to 2004," Agricultural Economics, International Association of Agricultural Economists, vol. 35(s3), pages 409-423, November.
- Quisumbing, Agnes R. & Estudillo, Jonna P. & Otsuka, Keijiro, 2004. "Land and schooling," Food policy statements 41, International Food Policy Research Institute (IFPRI).
- Estudillo, Jonna P & Otsuka, Keijiro, 1999. "Green Revolution, Human Capital, and Off-Farm Employment: Changing," Economic Development and Cultural Change, University of Chicago Press, vol. 47(3), pages 497-523, April.
- Schultz, Theodore W, 1980. "Nobel Lecture: The Economics of Being Poor," Journal of Political Economy, University of Chicago Press, vol. 88(4), pages 639-51, August.
- Nobuhiko Fuwa, 2007. "Pathways out of rural poverty: a case study in socio-economic mobility in the rural Philippines," Cambridge Journal of Economics, Oxford University Press, vol. 31(1), pages 123-144, January.
- Otsuka, Keijiro & Gascon, Fe & Asano, Seki, 1994. "'Second-generation' MVs and the evolution of the green revolution: the case of Central Luzon, 1966-1990," Agricultural Economics, Blackwell, vol. 10(3), pages 283-295, May.
- Otsuka, Keijiro, 1991. "Determinants and consequences of land reform implementation in the Philippines," Journal of Development Economics, Elsevier, vol. 35(2), pages 339-355, April.
- Keijiro Otsuka & Takashi Yamano, 2006. "Introduction to the special issue on the role of nonfarm income in poverty reduction: evidence from Asia and East Africa," Agricultural Economics, International Association of Agricultural Economists, vol. 35(s3), pages 393-397, November.
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