Poverty and Income Dynamics in Philippine Villages, 1985-2004

14 Pages Posted: 27 Oct 2008

See all articles by Jonna P. Estudillo

Jonna P. Estudillo

National Graduate Institute for Policy Studies (GRIPS)

Yasuyuki Sawada

University of Tokyo - Faculty of Economics

Keijiro Otsuka

National Graduate Institute for Policy Studies (GRIPS)

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.

Suggested Citation

Estudillo, Jonna P. and Sawada, Yasuyuki and Otsuka, Keijiro, Poverty and Income Dynamics in Philippine Villages, 1985-2004. Review of Development Economics, Vol. 12, No. 4, pp. 877-890, November 2008. Available at SSRN: https://ssrn.com/abstract=1287891 or http://dx.doi.org/10.1111/j.1467-9361.2008.00458.x

Jonna P. Estudillo

National Graduate Institute for Policy Studies (GRIPS) ( email )

7-22-1 Roppongi, Minato-Ku
Tokyo 106-8677, Tokyo 106-8677
Japan

Yasuyuki Sawada (Contact Author)

University of Tokyo - Faculty of Economics ( email )

7-3-1 Hongo, Bunkyo-ku
Tokyo 113-0033
Japan

Keijiro Otsuka

National Graduate Institute for Policy Studies (GRIPS) ( email )

7-22-1 Roppongi,Minato,
Tokyo 106-8677
Japan

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