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Migration, Remittances, Poverty and Inequality The Philippines

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  • Ernesto M. Pernia

    (School of Economics, University of the Philippines Diliman)

Abstract

The paper looks into the effects of international migration and remittances on household incomes and well-being, poverty reduction, human capital investment, saving, and regional development in the home country. Remittances appear to raise average incomes for all income groups but more so for the richer households than for the poorer ones, a finding that is consistent with that in several Latin American countries. Such eyeballing of the data is supported by econometric analysis which further reveals that remittances enhance household savings, spending on education and health care, and help the poor move out of poverty. Analysis at the regional level shows that, ceteris paribus, remittances also appear to contribute importantly to regional development, although overall increases in regional incomes do not seem to benefit low income households as much as the upper income ones.

Suggested Citation

  • Ernesto M. Pernia, 2008. "Migration, Remittances, Poverty and Inequality The Philippines," UP School of Economics Discussion Papers 200801, University of the Philippines School of Economics.
    • Handle: RePEc:phs:dpaper:200801
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    File URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/21/15
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    References listed on IDEAS

    as
    1. Dean Yang, 2004. "International Migration, Human Capital, and Entrepreneurship: Evidence from Philippine Migrants’ Exchange Rate Shocks," Working Papers 531, Research Seminar in International Economics, University of Michigan.
    2. Ernesto M Pernia & Anil B Deolalikar (ed.), 2003. "Poverty, Growth, and Institutions in Developing Asia," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-4039-3779-7, December.
    3. Adams, Richard H. Jr., 2003. "International migration, remittances, and the brain drain ; a study of 24 labor exporting countries," Policy Research Working Paper Series 3069, The World Bank.
    4. Rodriguez, Edgard R, 1998. "International Migration and Income Distribution in the Philippines," Economic Development and Cultural Change, University of Chicago Press, vol. 46(2), pages 329-350, January.
    5. Arsenio M Balisacan & Ernesto M Pernia, 2003. "Poverty, Inequality, and Growth in the Philippines," Palgrave Macmillan Books, in: Ernesto M Pernia & Anil B Deolalikar (ed.), Poverty, Growth, and Institutions in Developing Asia, chapter 7, pages 219-246, Palgrave Macmillan.
    6. Robert E.B. Lucas, 2005. "International Migration and Economic Development," Books, Edward Elgar Publishing, number 3826.
    7. Pernia, Ernesto M. & Quibria, M.G., 1999. "Poverty in developing countries," Handbook of Regional and Urban Economics, in: P. C. Cheshire & E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 3, chapter 45, pages 1865-1934, Elsevier.
    8. M. Pernia , Ernesto & S. Salas, J. M. Ian, 2006. "Investment Climate, Productivity, and Regional Development in a Developing Country," Asian Development Review, Asian Development Bank, vol. 23(2), pages 70-89.
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    Cited by:

    1. Polina Koriukina, 2023. "Economic Impacts of Overseas Labor Migration on Household Income and Expenditure in the Philippines," EGEIWP 03-2023, Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro", revised Dec 2023.
    2. Raju John, 2017. "A Panel Data Analysis of Relationship between Migration and Inequality," IIM Kozhikode Society & Management Review, , vol. 6(1), pages 98-109, January.
    3. Serino, Moises Neil & Ratilla, Therese, 2018. "Do International Remittances Alleviate or Aggravate Poverty in Developing Countries?," Review of Socio-Economic Research and Development Studies, Visayas State University, Visayas Socio-Economic Research and Data Analytics Center (ViSERDAC) and Department of Economics (DOE), College of Management and Economics (CME), vol. 2(1), pages 43-64, December.
    4. Geoffrey Ducanes, 2012. "Are remittances inducing laziness in households?: a reexamination of the evidence," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 49(2), pages 1-24, December.
    5. Moises Neil V. Serino & Donghun Kim, 2011. "How Do International Remittances Affect Poverty In Developing Countries? A Quantile Regression Analysis," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 36(4), pages 17-40, December.
    6. Son, Hyun, 2022. "The Distributional Impacts of Fiscal Policy: The Case of the Philippines," ADB Economics Working Paper Series 662, Asian Development Bank.
    7. Takahiro Akita & Sachiko Miyata, 2020. "Urban and Rural Dimensions of the Role of Education in Inequality: A Comparative Analysis between Indonesia, Myanmar, and the Philippines," Working Papers EMS_2020_04, Research Institute, International University of Japan.
    8. Theresa Devasahayam, 2010. "Placement and/or protection? Singapore's labour policies and practices for temporary women migrant workers," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 15(1), pages 45-58.

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