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Poor parents, rich children: the role of schooling, nonfarm work, and migration in rural Philippines

Author

Listed:
  • Jonna P. Estudillo

    (National Graduate Institute for Policy Studies)

  • Yukichi Mano

    (Hitotsubashi University)

  • Yasuyuki Sawada

    (University of Tokyo)

  • Keijiro Otsuka

    (National Graduate Institute for Policy Studies)

Abstract

This paper explores how migration to local towns, big cities, and overseas has halted the transmission of poverty from parents to children in rural Philippines. ParentsÕ income has come mainly from agricultural sources while childrenÕs income has come largely from nonfarm sources. Initially, poverty is higher among the landless households. Children from poor landless households are able to find their way out of poverty by acquiring more education, participating in rural nonfarm labor market, and migrating to big cities, local towns, and overseas. Migrant children have higher total income coming mainly from nonfarm income, which is significantly affected by education. In brief, this study demonstrates the rise in economic importance of education and the decline in economic importance of farmland in explaining economic mobility.

Suggested Citation

  • Jonna P. Estudillo & Yukichi Mano & Yasuyuki Sawada & Keijiro Otsuka, 2014. "Poor parents, rich children: the role of schooling, nonfarm work, and migration in rural Philippines," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 51(2), pages 21-46, December.
    • Handle: RePEc:phs:prejrn:v:51:y:2014:i:2:p:21-46
    as

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    File URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/908/808
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    References listed on IDEAS

    as
    1. Jonna Estudillo & Yasuyuki Sawada & Keijiro Otsuka, 2009. "The Changing Determinants of Schooling Investments: Evidence from Villages in the Philippines, 1985-89 and 2002-04," Journal of Development Studies, Taylor & Francis Journals, vol. 45(3), pages 391-411.
    2. 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.
    3. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    4. Jonna Estudillo & Manabu Fujimura & Mahabub Hossain, 1999. "New rice technology and comparative advantage in rice production in the Philippines," Journal of Development Studies, Taylor & Francis Journals, vol. 35(5), pages 162-184.
    5. Quisumbing, Agnes R., 1994. "Intergenerational transfers in Philippine rice villages : Gender differences in traditional inheritance customs," Journal of Development Economics, Elsevier, vol. 43(2), pages 167-195, April.
    6. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
    7. Jonna P. Estudillo & JAgnes R. Quisumbing & JoKeijiro Otsuka, 2001. "Gender Differences in Land Inheritance and Schooling Investments in the Rural Philippines," Land Economics, University of Wisconsin Press, vol. 77(1), pages 130-143.
    8. Yujiro Hayami & Masao Kikuchi, 2000. "A Rice Village Saga," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-59918-5, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    intergenerational transmission; poverty; inequality; nonfarm labor market; migration; Philippines;
    All these keywords.

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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