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Chronic and transient poverty and vulnerability to poverty in the Philippines: Evidence using a simple spells approach

Author

Listed:
  • Bayudan-Dacuycuy, Connie
  • Lim, Joseph Anthony
Abstract
This paper uses panel data and two welfare indicators, namely per capita expenditure and per capita food expenditure, to determine the frequency that the households enter poverty and food poverty in the Philippines. Unlike other studies, this paper attributes similar factors to explain transient and chronic poverty but finds that these factors are more pronounced for the chronic cases. Significant factors that contribute to both chronic and transient poverty and food poverty are the household heads’ low educational level, affiliation in economically unstable and risky occupations such as those in the agriculture, fishery and resource sectors and those who are unskilled laborers, the lack of health insurance and high dependency burden. It also finds that that vulnerability to poverty and food poverty in the Philippines is high especially in the rural districts and areas with armed conflict. Households that experience higher earnings, new job, abundant harvest, better health or receipt of remittance/inheritance are less likely to be chronically poor. Shocks related to labor market affect both transient and chronic food poverty while natural calamities or health deterioration of any household member increase the probability of the household falling into chronic food poverty. Policies suggestions to address both types of poverty are provided based on these results.

Suggested Citation

  • Bayudan-Dacuycuy, Connie & Lim, Joseph Anthony, 2014. "Chronic and transient poverty and vulnerability to poverty in the Philippines: Evidence using a simple spells approach," MPRA Paper 64747, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:64747
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    References listed on IDEAS

    as
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    Cited by:

    1. Purmiyati, Atik & Setyowati, Retno & Rakhima, Marta Sabila, 2021. "The Role of Microcredit Program and Micro Enterprises in Poverty Reduction," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 55(2), pages 29-38.
    2. Alkire, Sabina & Apablaza, Mauricio & Chakravarty, Satya & Yalonetzky, Gaston, 2017. "Measuring chronic multidimensional poverty," Journal of Policy Modeling, Elsevier, vol. 39(6), pages 983-1006.
    3. Shrimoyee Ganguly & Rajat Acharyya, 2024. "Money, exchange rate and export quality," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 33(1), pages 118-144, January.
    4. Connie Bayudan-Dacuycuy & Lora Kryz Baje, 2019. "When It Rains, It Pours? Analyzing the Rainfall Shocks-Poverty Nexus in the Philippines," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(1), pages 67-93, August.
    5. Connie Bayudan-Dacuycuy & Lora Baje, 2017. "Chronic Food Poverty in the Philippines," Working Papers id:12071, eSocialSciences.
    6. Jhon Edwar Hernández & Blanca Zuluaga, 2022. "Vulnerability to Multidimensional Poverty: An Application to Colombian Households," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(1), pages 345-371, November.
    7. Khac Linh Bui & Thanh Hang Bui, 2022. "Does Rural Credit Mediate Vulnerability Under Idiosyncratic and Covariate Shocks? Empirical Evidence from Vietnam Using a Multilevel Model," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(1), pages 172-224, February.
    8. Million Sileshi & Reuben Kadigi & Khamaldin Mutabazi & Stefan Sieber, 2019. "Analysis of households’ vulnerability to food insecurity and its influencing factors in East Hararghe, Ethiopia," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-17, December.
    9. Ganguly, Shrimoyee, 2023. "Money, Exchange rate and Wage Inequality," MPRA Paper 116374, University Library of Munich, Germany.
    10. Liu, Xiaoying & Hannum, Emily, 2017. "Early poverty exposure predicts young adult educational outcomes in China," China Economic Review, Elsevier, vol. 44(C), pages 79-97.
    11. Purmiyati Atik & Berma Madeline & Talib Basri Abdul & Rakhima Marta Sabila, 2019. "The Role of Banking Capital in Industrial Sector Micro Enterprises for Poverty Alleviation: A Study in East Java, Indonesia," Foundations of Management, Sciendo, vol. 11(1), pages 131-142, January.

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    More about this item

    Keywords

    Poverty dynamics; Spells approach; Philippines;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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