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Chronic and transient poverty and vulnerability to poverty in the Philippines: Evidence using a simple spells approach

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  • Bayudan-Dacuycuy, Connie
  • Lim, Joseph Anthony

Abstract

This paper uses panel data and two welfare indicators, namely per capita expenditure and per capita food expenditure, to determine the frequency that the households enter poverty and food poverty in the Philippines. Unlike other studies, this paper attributes similar factors to explain transient and chronic poverty but finds that these factors are more pronounced for the chronic cases. Significant factors that contribute to both chronic and transient poverty and food poverty are the household heads’ low educational level, affiliation in economically unstable and risky occupations such as those in the agriculture, fishery and resource sectors and those who are unskilled laborers, the lack of health insurance and high dependency burden. It also finds that that vulnerability to poverty and food poverty in the Philippines is high especially in the rural districts and areas with armed conflict. Households that experience higher earnings, new job, abundant harvest, better health or receipt of remittance/inheritance are less likely to be chronically poor. Shocks related to labor market affect both transient and chronic food poverty while natural calamities or health deterioration of any household member increase the probability of the household falling into chronic food poverty. Policies suggestions to address both types of poverty are provided based on these results.

Suggested Citation

  • Bayudan-Dacuycuy, Connie & Lim, Joseph Anthony, 2014. "Chronic and transient poverty and vulnerability to poverty in the Philippines: Evidence using a simple spells approach," MPRA Paper 64747, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:64747
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    File URL: https://mpra.ub.uni-muenchen.de/64747/1/MPRA_paper_64747.pdf
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    References listed on IDEAS

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    1. Duclos, Jean-Yves & Araar, Abdelkrim & Giles, John, 2010. "Chronic and transient poverty: Measurement and estimation, with evidence from China," Journal of Development Economics, Elsevier, vol. 91(2), pages 266-277, March.
    2. Ann Huff Stevens, 1999. "Climbing out of Poverty, Falling Back in: Measuring the Persistence of Poverty Over Multiple Spells," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 557-588.
    3. Joan R. Rodgers & John L. Rodgers, 1993. "Chronic Poverty in the United States," Journal of Human Resources, University of Wisconsin Press, vol. 28(1), pages 25-54.
    4. Tabuga, Aubrey D. & Mina, Christian D. & Reyes, Celia M. & Asis, Ronina D. & Datu, Maria Blesila G., 2010. "Chronic and Transient Poverty," Discussion Papers DP 2010-30, Philippine Institute for Development Studies.
    5. Mary Jo Bane & David T. Ellwood, 1986. "Slipping into and out of Poverty: The Dynamics of Spells," Journal of Human Resources, University of Wisconsin Press, vol. 21(1), pages 1-23.
    6. Balisacan, Arsenio M. & Hill, Hal (ed.), 2003. "The Philippine Economy: Development, Policies, and Challenges," OUP Catalogue, Oxford University Press, number 9780195158984.
    7. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    8. Sarah Jarvis & Stephen P. Jenkins, 1997. "Low income dynamics in 1990s Britain," Fiscal Studies, Institute for Fiscal Studies, vol. 18(2), pages 123-142, May.
    9. Ross Finnie & Arthur Sweetman, 2003. "Poverty dynamics: empirical evidence for Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 36(2), pages 291-325, May.
    10. Jalan, Jyotsna & Ravallion, Martin, 1998. "Transient Poverty in Postreform Rural China," Journal of Comparative Economics, Elsevier, vol. 26(2), pages 338-357, June.
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    Cited by:

    1. Connie Bayudan-Dacuycuy & Lora Baje, 2017. "Chronic Food Poverty in the Philippines," Working Papers id:12071, eSocialSciences.
    2. repec:eee:jpolmo:v:39:y:2017:i:6:p:983-1006 is not listed on IDEAS
    3. repec:eee:chieco:v:44:y:2017:i:c:p:79-97 is not listed on IDEAS

    More about this item

    Keywords

    Poverty dynamics; Spells approach; Philippines;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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