IDEAS home Printed from https://ideas.repec.org/p/jet/dpaper/dpaper96.html
   My bibliography  Save this paper

Human Capital Investment and Poverty Reduction over Generations: A Case from the Rural Philippines, 1979-2003

Author

Listed:
  • Takahashi, Kazushi
  • Otsuka, Keijiro

Abstract

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.

Suggested Citation

  • Takahashi, Kazushi & Otsuka, Keijiro, 2007. "Human Capital Investment and Poverty Reduction over Generations: A Case from the Rural Philippines, 1979-2003," IDE Discussion Papers 96, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper96
    as

    Download full text from publisher

    File URL: https://ir.ide.go.jp/?action=repository_action_common_download&item_id=38071&item_no=1&attribute_id=22&file_no=1
    File Function: First version, 2007
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. 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.
    4. Jennifer Lauby & Oded Stark, 1988. "Individual Migration as a Family Strategy: Young Women in the Philippines," Population Studies, Taylor & Francis Journals, vol. 42(3), pages 157-173.
    5. Schultz, Theodore W, 1980. "Nobel Lecture: The Economics of Being Poor," Journal of Political Economy, University of Chicago Press, vol. 88(4), pages 639-651, August.
    6. Quisumbing, Agnes R. & Estudillo, Jonna P. & Otsuka, Keijiro, 2004. "Land and schooling: transferring wealth across generations," Food policy statements 41, International Food Policy Research Institute (IFPRI).
    7. Mark R. Rosenzweig, 2003. "Payoffs from Panels in Low-Income Countries: Economic Development and Economic Mobility," American Economic Review, American Economic Association, vol. 93(2), pages 112-117, May.
    8. 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.
    9. Eswaran, Mukesh & Kotwal, Ashok, 1994. "Why Poverty Persists in India: A Framework for Understanding the Indian Economy," OUP Catalogue, Oxford University Press, number 9780195632385.
    10. 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.
    11. 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(4), pages 669-707, July.
    12. Yujiro Hayami & Masao Kikuchi, 2000. "A Rice Village Saga," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-59918-5, December.
    13. Nobuhiko Fuwa, 2007. "Pathways out of rural poverty: a case study in socio-economic mobility in the rural Philippines," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 31(1), pages 123-144, January.
    14. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Takahashi, Kazushi, 2013. "Pro-poor growth or poverty trap? : estimating intergenerational income mobility in rural Philippines," IDE Discussion Papers 382, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    2. Jonna Estudillo & Tomoya Matsumoto & Chowdhury Zia Uddin Hayat & Nandika S. Kumanayake & Keijiro Otsuka, 2013. "Labor markets, occupational choice, and rural poverty in four Asian countries," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 50(1), pages 23-44, June.
    3. Keijiro Otsuka & Jonna P. Estudillo & Takashi Yamano, 2010. "The Role of Labor Markets and Human Capital in Poverty Reduction: Evidence from Asia and Africa," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 7(1), pages 23-40, June.
    4. ERREYGERS, Guido & FEREDE, Tadele, 2009. "The end of subsistence farming: Growth dynamics and investments in human and environmental capital in rural Ethiopia," Working Papers 2009008, University of Antwerp, Faculty of Business and Economics.
    5. Okabe, Masayoshi, 2014. "Gender-preferential intergenerational patterns in primary education attainment : a quantitative analysis of a case of rural Mindanao, the Philippines," IDE Discussion Papers 479, Institute of Developing Economies, Japan External Trade Organization(JETRO).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Estudillo, Jonna P. & Quisumbing, Agnes R. & Otsuka, Keijiro, 2001. "Income distribution in rice-growing villages during the post-Green Revolution periods: the Philippine case, 1985 and 1998," Agricultural Economics, Blackwell, vol. 25(1), pages 71-84, June.
    2. Quisumbing, Agnes R. & McNiven, Scott, 2005. "Migration and the rural-urban continuum: Evidence from the Rural Philippines," FCND discussion papers 197, International Food Policy Research Institute (IFPRI).
    3. Otsuka, Keijiro, 2000. "Role of agricultural research in poverty reduction: lessons from the Asian experience," Food Policy, Elsevier, vol. 25(4), pages 447-462, August.
    4. Takahashi, Kazushi, 2013. "Pro-poor growth or poverty trap? : estimating intergenerational income mobility in rural Philippines," IDE Discussion Papers 382, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    5. Otsuka, Keijiro & Estudillo, Jonna P. & Yamano, Takashi, 2010. "The Role of Labor Markets and Human Capital in Poverty Reduction: Evidence from Asia and Africa," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 7(1), pages 1-18, June.
    6. Godquin, Marie & Quisumbing, Agnes R., 2006. "Groups, networks, and social capital in the Philippine communities:," CAPRi working papers 55, International Food Policy Research Institute (IFPRI).
    7. Arsenio M. Balisacan & Nobuhiko Fuwa, 2004. "Changes in Spatial Income Inequality in the Philippines: An Exploratory Analysis," WIDER Working Paper Series RP2004-34, World Institute for Development Economic Research (UNU-WIDER).
    8. Estudillo, Jonna P. & Otsuka, Keijiro, 2001. "Has Green Revolution Ended? A Review of Long-Term Trends in MV Adoption, Rice Yields, and Rice Income in Central Luzon, 1966-99," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 3.
    9. World Bank, 2009. "Land Reform, Rural Development, and Poverty in the Philippines : Revisiting the Agenda," World Bank Publications - Reports 18545, The World Bank Group.
    10. repec:phd:pjdevt:pjd_2006_vol__xxxiii_nos__1and2-a is not listed on IDEAS
    11. Sanjaya DeSilva & Mohammed Mehrab Bin Bakhtiar, 2011. "Women, Schooling, and Marriage in Rural Philippines," Economics Working Paper Archive wp_701, Levy Economics Institute.
    12. repec:phd:pjdevt:pjd_2006_vol._xxxiii_nos._1and2-a is not listed on IDEAS
    13. Christopher B. Barrett, 2005. "Rural poverty dynamics: development policy implications," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 45-60, January.
    14. Marcel Fafchamps & Agnes R. Quisumbing & IFPRI, 2006. "Household Formation and Marriage Markets," Economics Series Working Papers GPRG-WPS-039, University of Oxford, Department of Economics.
    15. Sakai, Yoko & Estudillo, Jonna P. & Fuwa, Nobuhiko & Higuchi, Yuki & Sawada, Yasuyuki, 2017. "Do Natural Disasters Affect the Poor Disproportionately? Price Change and Welfare Impact in the Aftermath of Typhoon Milenyo in the Rural Philippines," World Development, Elsevier, vol. 94(C), pages 16-26.
    16. Larson,Donald F. & Muraoka,Rie & Otsuka,Keijiro, 2016. "On the central role of small farms in African rural development strategies," Policy Research Working Paper Series 7710, The World Bank.
    17. Yamauchi, Futoshi & Tiongco, Marites, 2013. "Why women are progressive in education? Gender disparities in human capital, labor markets, and family arrangement in the Philippines," Economics of Education Review, Elsevier, vol. 32(C), pages 196-206.
    18. Quisumbing, Agnes R., 1995. "The extended family and intrahousehold allocation," FCND discussion papers 3, International Food Policy Research Institute (IFPRI).
    19. Quisumbing, Agnes R. & McNiven, Scott & Godquin, Marie, 2008. "Shocks, groups, and networks in Bukidnon, Philippines," CAPRi working papers 84, International Food Policy Research Institute (IFPRI).
    20. Sawada, Yasuyuki & Higuchi, Yuki & Kajisa, Kei & Fuwa, Nobuhiko & Marciano, Esther B. & Estudillob, Jonna P., 2012. "The East Laguna Village: Four Decades of Studies in a Filipino Village," PRIMCED Discussion Paper Series 18, Institute of Economic Research, Hitotsubashi University.
    21. Yasuyuki Sawada & Jonna P. Estudillo, 2006. "Trade, Migration, and Poverty Reduction in the Globalizing Economy: The Case of the Philippines," WIDER Working Paper Series RP2006-58, World Institute for Development Economic Research (UNU-WIDER).
    22. Silva, João Vasco & Reidsma, Pytrik & Lourdes Velasco, Ma. & Laborte, Alice G. & van Ittersum, Martin K., 2018. "Intensification of rice-based farming systems in Central Luzon, Philippines: Constraints at field, farm and regional levels," Agricultural Systems, Elsevier, vol. 165(C), pages 55-70.

    More about this item

    Keywords

    Intergenerational poverty dynamics; Child schooling; Occupational choice; Non-farm earnings; Philippines; Poverty; Rural societies; Human resources; 世代間の貧困動態; 児童教育; 学校教育; 就業選択; 職業選択; 非農業所得; 非農業賃金; フィリピン; 貧困; 農村; 人的資源;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jet:dpaper:dpaper96. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michitaka Imamitsu (email available below). General contact details of provider: https://edirc.repec.org/data/idegvjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.