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The Green Revolution, development of labor markets, and poverty reduction in the rural Philippines, 1985–2004

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  • Jonna P. Estudillo
  • Yasuyuki Sawada
  • Keijiro Otsuka

Abstract

Using a long‐term household panel data set collected in three rural villages in the Philippines in 1985 and 2004, this article explores how the Green Revolution and development of the labor markets have affected household income and poverty situation. The initial rise in income associated with the Green Revolution and a stronger credit access has enabled the households to allocate funds for investing in children's schooling. With the increased integration of the rural with the urban labor market, these children are able to explore labor opportunities in the nonfarm sector that resulted in a decline in poverty by about one‐half. The landless households, who are less educated, benefited, too, from the expansion of the nonfarm labor market, because of the rise in rural wages associated with the rise in demand for the unskilled labor, which is by far their most important asset.

Suggested Citation

  • Jonna P. Estudillo & Yasuyuki Sawada & Keijiro Otsuka, 2006. "The Green Revolution, development of labor markets, and poverty reduction in the rural Philippines, 1985–2004," Agricultural Economics, International Association of Agricultural Economists, vol. 35(s3), pages 399-407, November.
    • Handle: RePEc:bla:agecon:v:35:y:2006:i:s3:p:399-407
    DOI: 10.1111/j.1574-0862.2006.00186.x
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    References listed on IDEAS

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    1. Margaret Grosh & Paul Glewwe, 2000. "Designing Household Survey Questionnaires for Developing Countries," World Bank Publications - Books, The World Bank Group, number 25338.
    2. Jonna P. Estudillo & Yasuyuki Sawada & Keijiro Otsuka, 2004. "The determinants of schooling investments of rural Filipino households, 1985-2002," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 41(1), pages 1-29, June.
    3. Balisacan, Arsenio M. & Hill, Hal (ed.), 2003. "The Philippine Economy: Development, Policies, and Challenges," OUP Catalogue, Oxford University Press, number 9780195158984.
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    Cited by:

    1. Nobuhiko Fuwa & Arsenio M. Balisacan & Fabrizio Bresciani, 2015. "In Search of a Strategy for Making Growth More Pro-Poor in the Philippines," Asian Economic Papers, MIT Press, vol. 14(1), pages 202-226, Winter/Sp.
    2. Goto, Jun & Sawada, Yasuyuki & Aida, Takeshi & Aoyagi, Keitaro, 2015. "Incentives and Social Preferences: Experimental Evidence from a Seemingly Inefficienct Traditional Labor Contract," 2015 Conference, August 9-14, 2015, Milan, Italy 211687, International Association of Agricultural Economists.
    3. Yamauchi, Futoshi & Muto, Megumi & Chowdhury, Shyamal & Dewina, Reno & Sumaryanto, Sony, 2011. "Are Schooling and Roads Complementary? Evidence from Income Dynamics in Rural Indonesia," World Development, Elsevier, vol. 39(12), pages 2232-2244.

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